aaa-ooo-gah , dive dive ! It appears that year end manipulations have stopped ...
Markets down huge, dollar down huge, with money again headed towards commodities ...
(snip)" Jan. 2 (Bloomberg) -- U.S. stocks dropped, led by banks and computer companies, after a decline in manufacturing heightened concern the economy will shrink and sent shares to their worst start to any year since 2001.
Intel Corp., the biggest semiconductor maker, fell the most in 17 months after Bank of America Corp. lowered its rating and investors speculated companies will spend less on technology. Caterpillar Inc., the largest maker of earthmoving equipment, and International Business Machines Corp., the biggest computer services company, led the Dow Jones Industrial Average lower.
The Standard & Poor's 500 Index lost 23.88, or 1.6 percent, to 1,444.48 as of 1:12 p.m. in New York. The Dow average slipped 242.93, or 1.8 percent, to 13,021.89. The Nasdaq Composite Index decreased 53.95, or 2 percent, to 2,598.33. More than four stocks fell for every one that rose on the New York Stock Exchange.
The decline in the Institute for Supply Management's manufacturing index ``increases the odds we're going to go into a recession, and recessions are associated with bear markets,'' Brian Gendreau, who helps manage $12 billion at ING Investment Management in New York.
The ISM index dropped to 47.7, the lowest since April 2003 and the first reading below 50 since last January. The report, combined with a rise in the price of oil to a record $100 a barrel, spurred concern that consumer spending will slow, halting the five-year economic expansion. "(snip)
(snip)" Jan. 2 (Bloomberg) -- Crude oil reached a record $100 a barrel and gold soared to the highest ever, leading a commodity surge as the dollar's slump against major currencies enhanced the appeal of raw materials as hedges against inflation.
Spot gold climbed to $860.10 an ounce, and wheat and soybeans jumped more than 3 percent. The UBS Bloomberg Constant Maturity Commodity Index gained as much as 2.2 percent today after climbing 22 percent in 2007. The dollar fell on speculation the Federal Reserve will cut borrowing costs in an attempt to bolster the U.S. economy.
``The most salient buzzword in 2008 is going to be inflation,'' said Michael Pento, senior market strategist for Delta Global Advisors Inc. in Huntington Beach, California, which manages about $1.4 billion. ``The Fed is lowering interest rates and vastly increasing the money supply. They're further fueling inflationary expectations.''
Crude-oil futures for February delivery rose $3.29, or 3.4 percent, to $99.27 a barrel at 12:55 p.m. on the New York Mercantile Exchange. The previous record was $99.29 on Nov. 21.
Gold for immediate delivery surged $23.45, or 2.8 percent, to $857.15 an ounce after reaching a record $860.10. Gold futures for February delivery rose $22.10, or 2.6 percent, to $860.10 an ounce on the Comex division of the Nymex. The metal earlier reached $864.90, the highest for a most-active contract since Jan. 21, 1980, the day futures reached a record $873. "(snip)
the obvious conclusion behind these highly 'coincidental' developments is that a fair amount of 'invisible hand' market manipulations were going on in December to allow big investment firms / hedge funds / 'uber rich' investors to book decent looking final numbers for 4th quarter 2007. It now appears that the 'invisible hand' has been shoved back into a pocket, with stock markets and commodities thus freed to readjust pricing based on free market forces.