According to the Associated Press (and others), the DOW dropped 200 points today, it’s lowest in four months.
NEW YORK (AP) — Poor corporate earnings reports pounded the stock market Friday in a sour end to an otherwise strong week of trading. The Dow Jones industrial average fell more than 200 points and was headed for its worst day in four months.
Disappointing results from three giants of the Dow — Microsoft, General Electric and McDonald’s — were to blame. But the broader market fell, too, and the Standard & Poor’s 500 index fared even worse in percentage terms.
The Dow sank 221 points, or 1.6 percent, to 13,327. The S&P was down 26, or 1.8 percent, at 1,431. The Nasdaq composite index, hammered by a second ugly day for Google, lost 70 points to 3,002, a 2.3 percent decline.
The big drops Friday left the Dow and S&P clinging to gains for the week.
Financial analysts expect corporate earnings for July through September to be lower than the same period a year ago, which would be the first yearly decline in three years.
Here, I thought things were supposed to be getting better. At least that’s what Timothy Geithner said recently:
TOKYO (AP) — U.S. Treasury Secretary Timothy Geithner said Thursday that financial reforms and other actions in response to the global crisis are yielding results, helping the U.S. economy to grow at a pace better than there was reason to expect.
Speaking at a financial conference in Tokyo on Thursday, Geithner said the Obama administration would strive to resolve by the end of the year the impasse with the Congress that threatens to impose a so-called “fiscal cliff” of tax increases and deep spending cuts if the two sides do not reach agreement.
Obamanomics is not working.