Markets at the close ending at the lows again. Fourth 200 point decline in the Dow this month. More than 300 stocks at the NYSE hit new lows today, the highest level since the August lows. Technicals have now become very important, with the S&P slipping below last week's low.
The key now is for the major indices to hold the lows in August. S&P closing low for August was 1,406, Dow 12,845. Other indices are already there. Dow Transports at a new low today. The Dow Transports have gone from up 20.3% year to date at its July all time high, to down 2.4% year to date at today's low, according to Richard Suttmeier, Chief Market Strategist at RightSide.com.
The Russell 2000, the small-cap index, is also near a 52-week low.
Financials and retailers continue to lead the market down, with Citi at a new low on a Goldman Sachs downgrade to sell (Goldman also lowered its 2007, 2008 and 2009 earnings estimates for large-cap stocks), while retailers were led down by Lowe's, with a 10% decline in earnings, which also lowered its fourth quarter earnings estimates. Lowe's joinedJC Penney, Kohl's, and Ann Taylor in lowering guidance.
Material stocks continued their breakdown. Most hit historic highs in the beginning of November, but since then it has gotten ugly: Freeport McMoran down 22% from its historic highs (copper at 8-month low), BHP Billiton down 19% from its historic high, Mittal Steel down 18%.
A couple pieces of good news:
--NABE: economy will slow in Q4 but avoid recession.
--American Express raised its dividend 20% to 18 cents.
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