CNN MoneyA sell-off in stocks accelerated Monday afternoon following the news of explosions at the Boston Marathon.
The Dow Jones industrial average, which had been in the red all day, fell 266 points, or 1.8%. About 120 points of that drop took place following the reports of the explosions in Boston.
The S&P 500 lost 2.3% and the Nasdaq slipped 2.4%.
CNN reported that two explosions were heard near the finish line of the Boston Marathon shortly before 3 p.m. Eastern. (Read CNN.com for the latest on the explosions.)
Earlier in the day, stocks had already slumped worldwide, gold prices plunged and investors flocked to lower risk assets like U.S. Treasuries. The initial sell-off began after investors awoke to news that China’s economic growth had slowed in the first quarter.
What happened in China? The Chinese economy grew 7.7% in the first quarter, compared with a year earlier. The report was “disappointing” and confirmed China’s recovery is fragile, said Qu Hongbin, HSBC’s co-head of Asian economic research.
Economists had been expecting the Chinese economy to grow 8%, and because it reflected weaker global demand for Chinese goods and services, the news also drove stocks in Asia and Europe lower.
The Shanghai Composite, Hang Seng and Nikkei all dropped more than 1%. European markets took their cue from Asia, with London’s FTSE falling 0.6%.
China is the world’s second-largest economy after the United States, and is considered one of the top engines of global economic growth. Case in point: 7.7% growth per year is considered weak in China, while the U.S. economy would be lucky to grow around 3% annually.
A separate report also showed industrial production growth slowed sharply in China in March. Heavy manufacturing related to steel, power and telecommunications equipment showed the most weakness.
Gold bugs get zapped. Gold plunged more than 9% to settle at $1,361 an ounce and popular gold ETF SPDR Gold Trust (GLD) fell 8.8%.
Mining stocks were hit hard, with Newmont Mining (NEM, Fortune 500), Rio Tinto(RIO), Freeport-McMoran Cooper and Gold (FCX, Fortune 500), and Rangold Resources (GOLD) each dropping more than 5%.
The Australian and New Zealand dollars both fell against the U.S. dollar following the weak Chinese data. Both countries rely heavily on China as an importer of their raw materials.
Investors also opted for the safety of the U.S. dollar against the euro and British pound. Demand for U.S. bonds rose, and the yield on the 10-year Treasury note slid to 1.7%.
Bracing for barrage of bank and tech earnings. On the flipside, Citigroup (C, Fortune 500) had some good news. The bank reported a better-than-expected 30% jump in net income, to $3.8 billion. Revenue also topped forecasts, rising 6% in the latest quarter.
Goldman Sachs (GS, Fortune 500), Bank of America (BAC, Fortune 500) and Morgan Stanley (MS, Fortune 500) are on tap to report results later this week. Tech giants will also report results later this week, with Yahoo (YHOO, Fortune 500), Google(GOOG, Fortune 500) and Microsoft (MSFT, Fortune 500)all on deck.
Yeah, China’s economy is “fragile” with 7.7% growth and ours is rock solid at zero while expanding the debt(officially at 16t) at 8%. Yeah, that’s a recipe for success.
Ever notice how Wall Street fluctuates on “rumors and incidences” ? To me, this just proves what a phony-baloney bunch of shit Wall Street is. I mean, if Company’s are TRULY strong, then why would rumors and incedences like The Boston marathon affect their stock values??? When I buy gas or any other product, the price I pay DOES NOT fluctuate, within seconds, on “rumors” OR “incedences”. Hell, WE’VE BEEN HAD !!!
DOW responding to inside knowledge of what DHS leak has said will happen “as early as the end of April”. Economic meltdown. Fed to stop printing paper. China has cut us off. Boston an excuse to get police and military on the streets in advance of food stamps being cut off. SHTF sooner rather than later. Expect another false flag so big the sheeple will be grateful when the military occupation begins. streets. Internet email platforms under attack now.
Obombya signed off on reversal of provisions in the STOCK Act. These provisions would have required electronic filing of stock trade info by all top gov’t officials and made the info available on the web. He did it not long before the bombs went off in Boston and not a word was mentioned. Detonation occurred near offices identified as financial/ gov’t fraud intelligence agencies. Three elements working in unison here; financial, gov’t (fed/ state/ Zionist) and media.
Hmm….interesting…..
This is rather odd considering no financial institutions were bombed.
JUST A LITTLE SIDE SHOW BY THE MONEYCHANGERS , JUST KEEP MOVING SHEEPLE SHALOM
BOSTON BOMB = False flag used to distract nation from gun rights debate and further erosion of 2nd amendment rights
DIA Man Was Pulled From Boston Marathon By Military
http://vidrebel.wordpress.com/2013/04/16/dia-man-was-pulled-from-boston-marathon-by-military/