Dow drops almost 1000 points intraday before closing down 347

by Laura Ehrenberg-Chesler on May 6, 2010

in Credit Crisis,Debt,Economic Indicators,Employment,Fiscal Policy,Foreign Markets,Investment Strategies

The Dow Jones Industrial Average dropped almost 1000 points today.  It felt like panic/program selling.  Fear stoked the move, as pictures of riots in Greece and comments from the head of the ECU, had traders heading for the exit doors.  A weak domestic retail sales number did not help either.

Tomorrow, May 7, we get another employment number.  The expectation is that it will show improvement.  A good number may be ignored if traders are reluctant to go into the weekend with long positions.  A bad number will exacerbate any potential selling.

We are still assessing what the long term effects will be for the U.S. economy if Greece defaults on its debt, and the contagion spreads to the rest of Europe.  And as usual, we will be evaluating the employment number for signs of strength or weakness and its effect on the markets.

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