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Tag: plunge

How to interpret a market plunge

How to interpret a market plunge

Finance
FOR much of the past two years, market watchers have had little to write about, apart from the passing of one stock-index milestone after another. The events of the past week, however, have shaken the financial world awake. A recent, upward zag in bond yields seemed to signal the arrival of a new theme in market movements. Stock prices confirmed it, and then some. Over the past week, American stocks have dropped about 7%, punctuated by a breathtaking, record-setting plunge on Monday. The Dow Jones stock index recorded its largest ever one-day drop, of more than 1,000 points. In percentage terms the decline, of more than 4%, was the biggest since 2011.The swoon set tongues to wagging, about its cause and likely effect. There can be no knowing about the former. Markets may have worried that ...
Putting the Dow Jones Industrial Average's 666-Point Plunge Into Perspective

Putting the Dow Jones Industrial Average's 666-Point Plunge Into Perspective

Finance
Move over Freddy Krueger, because you've got company. The nightmare came to Wall Street on Friday, with the iconic Dow Jones Industrial Average (DJINDICES: ^DJI) logging its worst day since Donald Trump took office. The Dow wound up falling 666 points, which registers as the sixth-worst point decline in the nearly 122-year history of the index.By day's end, according to data from BarChart.com, 91% of the companies listed on the New York Stock Exchange had declined, compared to a meager 8% that moved higher. If you want to point your finger, blame it predominantly on the "tech wreck" and simple profit-taking following a powerful rally to begin the year. Names like Apple  (which is a Dow component) and Alphabet , the parent of Google and YouTube, faile...
Daily Mail owner DMGT's shares plunge

Daily Mail owner DMGT's shares plunge

Business
Shares in Daily Mail publisher DMGT have fallen by 25% to hit a near five-year low.It came after full-year profit dropped 13% to £226m, and broker Liberum downgraded DMGT from "buy" to "hold" over consumer media concerns.DMGT said it may be "adversely affected by recent disposals and challenging conditions" in some sectors next year.They also warned that advertising market conditions were "likely to remain volatile".Its financial results revealed it was also hit by a £206m impairment charge against its Genscape, Xceligent and SiteCompli businesses.Chief executive Paul Zwillenberg said DMGT had delivered a "resilient underlying performance during the year".He said that website MailOnline had continued to grow its revenue strongly, "moving into operating profit during the final quarter".DMGT
Carillion in fresh plunge on latest alert

Carillion in fresh plunge on latest alert

Business
Troubled construction group Carillion has endured a fresh shares collapse after issuing its third profit warning of the year and saying it faces breaching its agreements with lenders.Carillion, which is working on the HS2 rail link as well as being involved in other major public projects and contracts, saw its market value slump by more than half in early trading.The Government said on Friday that it was being kept informed of the group's turnaround efforts.Carillion has been fighting for its financial future as it tries to deal with a vast debt pile and badly performing contracts.Its shares had already fallen by two-thirds since profit warnings in July and September.The latest alert saw a further shares collapse. Although they partly recovered later in the session, they still closed 48% l...
David Stockman warns investors to 'get out of the casino,' says stocks set for a 40-70% plunge

David Stockman warns investors to 'get out of the casino,' says stocks set for a 40-70% plunge

Finance
David Stockman is warning about the Trump administration's tax overhaul plan, Federal Reserve policy, saying they could play into a severe stock market sell-off.Stockman, the Reagan administration's director of the Office of Management and Budget, isn't stepping away from his thesis that the 8½-year-old rally is in serious danger."There is a correction every seven to eight years, and they tend to be anywhere from 40 to 70 percent," Stockman said recently on CNBC's "Futures Now." "If you have to work for a living, get out of the casino because it's a dangerous place."He's made similar calls, but they haven't materialized. In June, Stockman told CNBC the S&P 500 could easily fall to 1,600, which at the time represented a 34 percent drop. This week, the index was trading at record levels