Traders-Blog.com

Stocks plunged sending the Dow Jones Industrial Average down over 300 points for its second worst day of the year, as anxiety about shaky credit markets and the troubled housing sector swept Wall Street. The wave of worry about housing and credit markets sent the Dow industrials tumbling.

Today, the Dow closed down 311.50 or 2.26% to 13,473.57, the broader S&P 500 closed down 35.43 or 2.33% to 1,482.66, while the tech-laden Nasdaq closed down 48.83 or 1.84% to 2,599.34.

Market breadth was negative on heavier than normal volume. Losers topped winners 10 to 1 on the New York Stock Exchange on volume of 2.79 billion shares. Decliners beat advancers 5 to 1 on the Nasdaq on volume of 3.45 billion shares.

The uncertainty that unnerved investors came on two fronts: tougher times for the credit markets and barrage of bad news for housing. The tighter credit is likely to slow the buyout boom that’s helped prop up stock prices. And it could raise the cost of borrowing for companies, hurting corporate earnings.

In other economic news, orders for big-ticket items rose less than expected in June. Jobless claims also fell last week. While this week looks to be a big loser for the market, the outlook beyond that may not be so dreary. Some economist feel that the sell off today was just a blip in the latest leg of the bull market.

Shares of Exxon closed down $4.56 or 5.5% to $88.23, after posting a decline in quarterly profits. It reported over $10 billion in quarterly profit Thursday as higher gasoline prices helped offset a decline in revenue from natural gas.

Stock of Ford Motors closed up $0.12 to $8.09, after reporting unexpected profit in the second quarter, helped by reduced losses in its North American operations.

Shares of Apple closed up $8.74 or 6% to $146.00, after the company reported results that beat market estimates.

Crude prices finished lower with U.S. light crude for September down 93 cents to $74.95 a barrel.

All the best,
Manuel Jesus-Backus
The Portfolio Crafter