Stocks Fall on Eve of Bernanke's Big Speech

[MNeagle]

STOCKS FALL ON EVE OF BERNANKE'S BIG SPEECH: Here's What You Need To Know





http://static6.businessinsider.com/image/4dee7d3bccd1d5ef25360000-400-300/bernanke-eyes.jpg


After three up days, the global stock rally lost steam.


But first, the scoreboard:


Dow: -172
NASDAQ: -48
S&P 500: -18



And now the top stories:


The huge news that kicked things off was last night's resignation of Steve Jobs (http://www.businessinsider.com/blackboard/steve-jobs). Apple (http://www.businessinsider.com/blackboard/apple) shares fell 6% in overnight trading but recovered through the day to less than 1% losses, ironically beating the rest of the market.
Asian markets ended up (http://www.businessinsider.com/china-leads-world-stocks-higher-as-gold-falls-2011-8) thanks to strong earnings out of China and signs that the government would increase spending. At this point in the day, gold was adding to a big two-day plunge. It would reverse some losses later as stocks sold off around the world.
European markets declined through the day, including a mini-flash crash in Germany (http://www.businessinsider.com/ratings-agencies-germany-credit-2011-8)that may have been triggered by an unfounded rumor of ratings downgrade. Investors certainly weren't settled when most of Europe extended a ban on short selling, nor when Greece activated emergency liquidity measures (http://www.businessinsider.com/greece-emergency-liquidity-assistance-thursday-2011-8) nor when the BOE opened a line of swaps to the ECB (http://www.businessinsider.com/boe-extends-ecb-swap-line-in-sign-liquidity-problems-are-real-2011-8).
Warren Buffet rode to the rescue of Bank of America (http://www.businessinsider.com/blackboard/bank-of-america) with a $5 billion investment (http://www.businessinsider.com/berkshire-hathaway-to-invest-5-billion-in-bank-of-america-2011-8), which spurred the bank to 16% early gains. They didn't last. BofA ended up 9% and was one of the few winners as U.S. stocks declined through the day. A miss on U.S. jobless claims (http://www.businessinsider.com/initial-claims-august-25-2011-8) and trouble in Europe reminded investors that the economy suck.
When Bernanke speaks tomorrow at 10 ET, plenty of financial gurus don't expect him to say much (http://www.businessinsider.com/bernanke-jackson-hole-qe3-2011-8). Nevertheless everyone is prepared for a big market reaction. People will also watch tomorrow's big speech from ECB Chief Jean Claude-Trichet.
Potentially the biggest hurricane in years (http://www.businessinsider.com/new-computer-model-irene-new-york-hurricane-2011-8) will reach America tomorrow. It is expected to reach the Northeast, where New Jersey has declared a state of emergency and New York City has prepared for possible evacuations (http://www.businessinsider.com/map-of-the-day-new-york-city-hurricane-evacuation-zones-2011-8).








Read more: http://www.businessinsider.com/closing-bell-august-25-2011-8#ixzz1W4eymekH


Was looking for info on when Ben would speak (wondering if it was after market-hours or not).

[iOWNme]

When Bernanke speaks, PM's listen!

[Canadian-guerilla]

i thought odrama had the big speech tmmw ?

[JohnQPublic]

pre-planned blackmail: Print to infinity or else we ruin Obama's chances of re-election.

[osoab]

http://www.zerohedge.com/sites/default/files/pictures/picture-5.jpg (http://www.zerohedge.com/users/tyler-durden)
Here Are Wall Street's Expectations For Tomorrow, As Goldman Makes The Case For $1 Trillion In QE3 (http://www.zerohedge.com/news/here-are-wall-streets-expectations-tomorrow-goldman-makes-case-1-trillion-qe3)


I think ben should go for 2-3 trillion. Go big or stay home.

What was the trigger for today's "selloff"? More leaked info?

http://www.finviz.com/fut_chart.ashx?t=YM&cot=124601,124603&p=m5

[mick silver]

i heard he was going to give every family a million dollars to spent as they wish . that way no one needs to work in the usa anymore

[osoab]

i heard he was going to give every family a million dollars to spent as they wish . that way no one needs to work in the usa anymore


What is Ponce going to do with more toilet paper?

[MAGNES]

This is going to be very interesting, I think they dropped gold for this speech.
$200 buck drop in 2 days, when's the last time that happened so fast.

Some are speculating he will allude to QE3, like last year at this time.

http://i55.tinypic.com/33p61e1.gif

[MNeagle]

Anybody listening to him speak?

Markets just dove 80 further points...

http://www.finviz.com/image.ashx?dow&rev=634499499622343750

[chad]

i waited all week for this?

[MNeagle]

Fed Chairman Bernanke proposes no new steps to boost economy, says Fed to consider additional tools next month

(http://www.cnbc.com/id/44286314)

spotted by editor
<LI class=via>from http://www.google.com/s2/favicons?domain=www.cnbc.comwww.cnbc.com (http://www.cnbc.com/id/44286314)

[Neuro]

Here comes da PLUNGE!


Stocks retreated while Treasuries maintained losses after Federal Reserve Chairman Ben S. Bernanke announced no new plan to stimulate growth.
The Standard & Poor’s 500 Index dropped 1.5 percent at 10:01 a.m. in New York. The Stoxx Europe 600 Index lost 2.4 percent as Germany’s DAX Index slid 2.5 percent. The Dollar Index dropped 0.2 percent. The rise in Treasuries drove yields on 10-year notes down six basis points to 2.17 percent.
Stocks fell as Bernanke withheld the same reassurance he offered at last year’s event in Jackson Hole, Wyoming, when discussion of a plan to stimulate the economy through Treasury purchases ignited an eight-month equity rally. The S&P 500 has dropped more than 15 percent since reaching its 2011 high in April as reports on U.S. employment, housing and manufacturing heightened speculation the biggest economy is poised for a recession.
Barclays Plc said this month that yields on 10-year Treasuries indicated traders priced in $500 billion to $600 billion of Treasury purchases by the Fed. Citigroup Inc. said current rates can only be justified by more central bank bond buying or assuming the economy will shrink by 2 percent.
U.S. gross domestic product increased at a 1 percent annual rate in the second quarter, missing the median economist forecast for a 1.1 percent increase, according to a report today.
To contact the reporter on this story: Nick Baker in New York at nbaker7@bloomberg.net
To contact the editor responsible for this story: Nick Baker at nbaker7@bloomberg.net
5-600 Billions in new bonds, where will the money comes from? Maybe Hannukah Bernanke will kindly supply a big bag to his tribal banksters, that may trickle down to goyim eventually...

[Neuro]

At least one month of Hellfire!

[chad]

so now the market is in the green. you can't make this stuff up.

[MNeagle]

http://www.finviz.com/image.ashx?dow&rev=634499533266406250

& back to red. Guess Ben's speech will be considered a non-event.

Next, The O speaks about Irene in 30 minutes.

What a week.

[Neuro]

so now the market is in the green. you can't make this stuff up.

It is just weird! Bernanke reassured the market that it doesn't need liquidity. Mindboggling!

I doubt it will last the day though!

[ximmy]

The Bernank said: Nothing to see here; move along...

[sirgonzo420]

The Bernank said: Nothing to see here; move along...

Yep. FEDi mind tricks.

"These aren't the droids you're looking for..."


Lol