What Happened To The Stock Market Today?
Let’s just say the it went to hell in a hand basket (where that phase came from, I don’t know). The market started down 300 points in the first twenty four minutes and then stabilized being down about 250 points for most of the day. It stayed that way until Congress decided to vote against the “Investing In America” bill. The vote was 207 to 228 against saving this economy and the financial sector.
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The bill could have passed if Nancy Pelosi didn’t go ahead a bash the Bush Administration, but she did and that’s the way it goes.
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As for what happened after the voting was over, the stock markets went spiraling out of control. Within three minutes the DOW dropped another 400+ points, making the DOW down 705 points. It did get a bounce and return 300+ point, but again that didn’t last long.
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In the financial sector, most stocks fell more than double digit percentages and some like Wachovia dropped 81%. Who knows which company will fail next because of this failure by Congress.
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As for the rest of the day, the market closed horribly low. The DOW lost 777.68 (-6.98%)points closing at 10,365.45, the NASDAQ lost nearly 200 points today closing at 1983.73 (-8.14%) and the S&P 500 dropped 106 points to close at 1106.42 (-8.79%).
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Needless to say that there was no bright spot in today’s trading. What I found odd in a day like this that there were two stocks that did quite well. The first one is a solar stock that could be considered to be a penny stock and trades on the NYSE, that stock is Verasun Energy Corp. (NYSE:VSE). The stock rose $0.86 today in open trading, closing at $3.05. At the time of me writing this post, it’s sit at $4.00, that makes it a gain of 81%. What I found interesting is that there was no news that was released today on this company.
The other company that did well was one that I’ve invested in and have spoken about here on this site. Converted Organics CL B WRTS (NASDAQ: COINZ) had a bad day in the open market losing at one point 10%. In after market trading it’s something totally different, it’s bounced back off it’s low of $3.30 and now sits at $4.70, up 25% for the day.
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P.S. Want to learn more about the stock market? take a free two week trail with Jim Cramer from TheStreet.com
Just for some ideas as to what to do for the rest of the week. The markets will come back once a bill is past by Congress. Do your due diligence and look into which stocks work for you and your portfolio and buy now while the getting is good. The main reason the markets have dropped is because of the lack of confidence in the economy and many people have decided to pull out for now to see what happens.
Good luck and happy trading.
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Posted in Financial Bailout, Government Involvement, Stock Market News | 1 Comment »
January 21st, 2010 at 7:34 pm
I am not an investor but I do have my IRA in domestic stocks, mutual funds, bonds and foreign stocks. Now, I noticed that every time Obama talks or gets on TV to discuss how our economy is doing or what he is planning to do, our stocks take a dive. Investors freak out every time Obama gets on the news. They should not let him talk. He should just stay in the white house and let the economy recover. He is affecting everything.