Transcript for Dow Jones Drops 224 Points
This is a special report from ABC news. -- -- -- -- New -- -- his ABC news digital special reports you're watching live coverage of the closing bell. And ringing the bell of this afternoon the folks from Oxford Industries are expected to help close of the trading ports day. Taking a look now adds that bell closing -- Thursday August 15. Thirteen. There they are -- Bahamas actually out -- not Oxford close -- trading today. Wall Street getting hammered taking a look now at how the -- Is closing -- the day down 224 points at 151112. A want to bring in Mike cent toll -- -- who finance talk about what happened today Mike the bottom line not a good Thursday. No not good at all actually you know the market has been somewhat on the defensive since it made an Ohio August 2 actually had been down six of eight days coming in today and then. We got some pile on effect with some bad earnings report certainly somewhat disappointing. From Cisco Systems Wal-Mart. And affect the Wal-Mart earnings kind of reinforce this idea -- consumer was kind of back on his heels in in this summer. Macy's yesterday had some sort of sobering outlooks to so it seemed like there was a little bit of economic anxiety but yet. The initial jobless claims for the week came in much stronger than expected. And all of a sudden it fueled this renewed concern I guess that the Federal Reserve is going to start curtailing. It's stimulus help and basically stopped buying quite as much. In and bonds as it has been doing for -- -- 85 billion dollars a month come September so you've had these kind of between. Fears out there they seem to have come together in today's trading. See -- the jobless numbers were pretty decent also housing construction were also pretty solid Islam which is not enough to actually get some confidence in the market today. Well yeah I mean basically it's how the how the markets -- to interpret what good economic news is essentially if they feel like what that's going to do is to force the feds hand and be a little bit less friendly with regard to their their monetary plan. Then maybe it's not as good as it would be on its face -- also. The uneasiness that companies which have been setting record profits for a few years now might be kind of stalling out in terms of their ability to keep. Posting higher earnings I do think all these things are in the mix but you know just for a little bit of context. The market from its -- down less than 3% by the major indexes we've had. Two -- three previous -- -- this year of at least that much so at this point it was kind of a market that had gotten a little ahead of itself. And is getting a gut check next week we're actually gonna get. Potentially a lot more clues about at least -- the -- side of things what might happen. When we do get the release of their diminishing their last meeting as well as this annual conference in Jackson Hole Wyoming. That a lot of the Fed officials go to and usually it is kind of a platform. To kind of make some statements about what future policy might day. What is interest in is that you have companies like Wal-Mart and Macy's that you mention when they came out their earnings report. When you kind of compare -- with actual industries with housing and then also with sectors as far as the unemployment numbers that come out as far as. How -- kind of balances for -- Wall Street is gonna react to something like that yeah. Well here's the thing you know that the backdrop to is that interest rates have been inching higher and in fact it at times been going -- Faster than people would be comfortable way. That's what people worry about with regard to housing not so much how it's done. In the last summer months but whether the outlook is going to be -- just because mortgage rates are going up as well so all these things are coming into the next. If you know right now bond yields. Pushing up against 3% for the the ten year treasury. Is got people wondering if you know essentially that's going to. Keep levitating in which case it would. -- -- raise the price of credit throughout the economy again. No assurance if that's the way it's going ago but at least that's a bit of the the anxiety it's preventive to the markets this week. Is this the new normal is this the kind of I don't -- -- -- reaction business kind of what we've just come to expect from Wall Street anytime. We've got that lingering thought of what the Fed's going to be -- -- that bond buying program in the back of our heads. Yeah that's going to be the way it is for awhile and you know. I would say that. You know one of the things about this year in the market is that we have not had many one day dramatic moves it actually is kind of been a lowing tight market work. You know the default mode which is to be to -- up gently every day. So a percent half down is not that unusual on -- one day move. What's different is that the market is is responding as you suggested -- sort of intimations of what might happen based on fed policy makers as opposed to. A lot of the hard economic evidence that you might have in -- right in front of I do still think. It's an open question as to what the Fed doesn't September and so all of a sudden we could be in for one of these. Pleasant surprises if you consider -- pleasant that the federal say you know what the economy is not on firm ground we're gonna hold off for awhile and changing policy. -- is it's so are hard to record header on that in the fact that actually that could be silver lining to hear that -- the economy still isn't quite back on stable footing. -- the S&P do for the day. -- -- down about a percent a -- so we're we're down to you know as the low 1660s. The high in the S&P for the year for all time actually was about seventeen. -- nine what we basically gators we've. On -- a lot of the July recovery. So at this point it seems like we're in this in a choppy summer range for the moment. -- I had -- Santos and Yahoo! finance one let's look at how the Dow closed down for the day down 225 points -- -- -- 151112. I'm Dan -- in New York in the suspend an ABC news digital special report. This has been a special. Report from me.
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