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Omaha Steve

(99,716 posts) Tue Jan 27, 2015, 02:47 PM Jan 2015

Warning sign: Stocks take nosedive

Source: CNN

Forget the snow. Investors are getting a blizzard of earnings today, and so far it's a gray mess.

The Dow tanked as much as 380 points Tuesday morning as Microsoft (MSFT, Tech30), Caterpillar (CAT) and Procter & Gamble (PG) all disappointed heavily in their results. If the Dow closes down more than 350 points (it's currently falling about 230), it would be the worst day since June 2013.

The market is reacting to three prongs of bad news: falling oil's impact on companies, more signs of a weakening global economy and corporations cutting their outlook for 2015.

Caterpillar is expecting a big hit on its construction equipment business as China slows down and demand drops off from oil producing parts of the world. Profits for the fourth quarter are already down 25% from a year ago.

FULL story at link. Video: http://money.cnn.com/video/investing/2015/01/27/dow-dive-earnings.cnnmoney/

Read more: http://money.cnn.com/2015/01/27/investing/stock-market-dow-dive/

13 replies

= new reply since forum marked as read

Highlight:

Warning sign: Stocks take nosedive (Original Post) Omaha Steve Jan 2015 OP

Down -255 at this moment. lamp_shade Jan 2015 #1

I don't call two percent a nosedive. SheilaT Jan 2015 #2

Straight from How to Lie with Statistics Ron Obvious Jan 2015 #11

They could have done that in 1987 but with DOW 18k ? jakeXT Jan 2015 #13

CNN taking chart-making lessons from FOX? arcane1 Jan 2015 #3

I was thinking the same thing, good catch. Darb Jan 2015 #8

Weird. Those are companies that actually make things and/or have products. onehandle Jan 2015 #4

Just another BS excuse for the Hedge funds to "Yank & Tank" Wall street again. bobalew Jan 2015 #5

Did you ever watch The Sopranos? Darb Jan 2015 #10

-191 lamp_shade Jan 2015 #6

This message was self-deleted by its author Corruption Inc Jan 2015 #7

yesterdays news. olddad56 Jan 2015 #9

In the 1970s the "Stock Market reported 12 of the last six recessions" happyslug Jan 2015 #12

lamp_shade

(14,841 posts)

1. Down -255 at this moment.

Reply to Omaha Steve (Original post)

Tue Jan 27, 2015, 02:59 PM

Jan 2015

SheilaT

(23,156 posts)

2. I don't call two percent a nosedive.

Reply to Omaha Steve (Original post)

Tue Jan 27, 2015, 03:11 PM

Jan 2015

And right now (12:10pm MST) it's only down 243.74 (1.38%).

You've posted exactly the kind of chart that is highly misleading.

Ron Obvious

(6,261 posts)

11. Straight from How to Lie with Statistics

Reply to SheilaT (Reply #2)

Wed Jan 28, 2015, 03:53 PM

Jan 2015

Using a chart that doesn't use 0 as baseline to make it look as though the DOW lost half its value.

I'd advise anybody to read that classic little book. All the techniques are still use.

jakeXT

(10,575 posts)

13. They could have done that in 1987 but with DOW 18k ?

Reply to Ron Obvious (Reply #11)

Wed Jan 28, 2015, 04:18 PM

Jan 2015

arcane1

(38,613 posts)

3. CNN taking chart-making lessons from FOX?

Reply to Omaha Steve (Original post)

Tue Jan 27, 2015, 03:17 PM

Jan 2015

When the vertical axis starts at 17,200, it seems considerably more dramatic than it is.

Darb

(2,807 posts)

8. I was thinking the same thing, good catch.

Reply to arcane1 (Reply #3)

Wed Jan 28, 2015, 11:11 AM

Jan 2015

Markets swing on news, sometimes a pretty large swing, especially these days with electronic trading and so many day trading scaredy cats.

That chart is a joke.

onehandle

(51,122 posts)

4. Weird. Those are companies that actually make things and/or have products.

Reply to Omaha Steve (Original post)

Tue Jan 27, 2015, 03:18 PM

Jan 2015

Most of Wall Street is based on nothing.

Not good...

bobalew

(322 posts)

5. Just another BS excuse for the Hedge funds to "Yank & Tank" Wall street again.

Reply to Omaha Steve (Original post)

Tue Jan 27, 2015, 03:20 PM

Jan 2015

I've been watching this pattern for years. This is part of the "Fix" on Wall Street.
Sell enough Naked short Sales (Yeah I KNOW that's illegal, but it still happens) to manipulate the market on Key Buoyant stocks, and then have a free fall Short party, on those, Betting against them on BORROWED stock, making more money on the way down, than they did on the way up. Hedge funds have been stripping all of the hard working companies of their value like this for several years, causing unnecessary volatility, and stealing from us. This is how the powerful & extremely rich do it. Manipulate the market. Solution? OUTLAW SHORT SALES by LARGE entities.

Darb

(2,807 posts)

10. Did you ever watch The Sopranos?

Reply to bobalew (Reply #5)

Wed Jan 28, 2015, 11:14 AM

Jan 2015

There was a time during that show where the gansters were manipulating certain things in the penny stock market or somewhere. I think there is a whole lot of gangster shit being pulled in the markets these days. It is a free for all.

lamp_shade

(14,841 posts)

6. -191

Reply to Omaha Steve (Original post)

Tue Jan 27, 2015, 03:28 PM

Jan 2015

Response to Omaha Steve (Original post)

Corruption Inc This message was self-deleted by its author.

olddad56

(5,732 posts)

9. yesterdays news.

Reply to Omaha Steve (Original post)

Wed Jan 28, 2015, 11:14 AM

Jan 2015

happyslug

(14,779 posts)

12. In the 1970s the "Stock Market reported 12 of the last six recessions"

Reply to Omaha Steve (Original post)

Wed Jan 28, 2015, 04:15 PM

Jan 2015

The point of that statement was the Stock Market had little to do with the economy, the Stock Market reacts to the economy NOT the economy to it, thus this means NOTHING. It does mean people who invest in the Stock Market (Who tend to be the 1%) have lost money, but almost no one else did. Thus the Stock Market goes down at times when the economy goes down, at times when the economy goes up and at times when the moon raises (or falls), they is often no reason for the decline or increase.

The real economy has been in tatters since the 2008 recession and has NOT recovered, the Stock Market has but NOT the real economy.

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