After yesterday’s carnage in the stock market, strategists warned bouncing back wouldn’t be easy. Sure enough, today’s slide is starting to pick up some steam in early afternoon trading.
The Dow recently fell 93 points, or 0.7%, to 12840, which comes one day after the blue-chip index tumbled 312 points — the worst drop of the year — following President Obama’s reelection. Cisco Systems which reported its first monthly sales drop in nine years — and Home Depot are leading the declines, as lingering worries over the looming fiscal cliff are outweighing better-than-expected labor-market and export data.
The S&P 500 is down 0.9% to 1382 (so much for holding that psychologically important 1400 level). The tech-heavy Nasdaq Comp is off 0.8% at 2913 Apple Inc. shares are down nearly 3%, and have now fallen 22% in less than two months.
“The negative equity trade is building steam,” warns Andrew Brenner, global head of international fixed income at National Alliance. “Bonds are gaining traction as the world is becoming more negative on both Europe and the U.S.”
No one thinks that Obama is going to do a good job.