Stocks dive on belief global recession is at hand

All stock markets are down on growing belief that severe global recession is at hand. How low will they go? Could we hit a bottom today? Wall Street is joining world stock markets in a precipitous plunge, with the Dow Jones industrials dropping more than 400 points in the opening minutes of trading. The growing belief that the world will suffer a punishing economic recession has investors furiously dumping stocks. Grim news from overseas has added to the worldwide gloom. Big companies including Sony and Daimler are warning of tough times ahead, joining U.S. companies in scaling back their earnings forecasts. The Dow is down more than 400 points bellow 8,300 level. All the major indexes are down more than 4 percent.

Stocks taking a dive as investors weigh corporate forecasts

Wall Street is big time down again Wednesday as investors shifted their focus from improving credit markets to worrisome corporate profit forecasts that are raising fears of a deep economic slowdown. This is madness. No peace of good news since to matter. Any small piece of bad news is enough to get the markets in free fall. The major indexes fell more than 2 percent, including the Dow Jones industrial average, which lost about 350 points.

US STOCKS Market drops on recession, profit worries

U.S. stocks were loosing value on Tuesday as recession fears fueled a sell-off in commodity-related companies like Exxon Mobil Corp.

Also the earnings reports and outlooks sparked caution.

At the time of this writing all of the major indexes were down, however they well showing sign of heading to positive territory maybe later today.

Stocks future lower after rally yesterday

Wall Street is heading to a lower open Tuesday Oct 21st, a day after a over 400 points rally. In the mean time investors are monitoring gradually easing credit market conditions while sifting through another batch of quarterly earnings reports. That will give some clues on where the economy is going. Ahead of the market's open, Dow Jones industrial average futures fell 59, or 0.63 percent, to 9,258.

Among the companies reporting Tuesday are Caterpillar Inc., Apple Inc., DuPont Co. and Pfizer Inc.

The Standard & Poor's 500 index futures fell 6.50, or 0.66 percent, to 983.90, and the Nasdaq 100 index futures fell 20.00, or 1.47 percent, to 1,340.00.

Some pullback in stocks was to be expected as investors cash in profits from yesterday big gains. Nevertheless, market anxiety appears to have lessened considerably compared to the previous two crazy weeks in wall street when fears about tightening world credit and the health of the economy battered stocks everywhere across the world.

Yesterday, the Dow Jones rally more than 400 points on more signs of a reviving credit market and support from FED Chairman Ben Bernanke for further steps to aid the economy, including an additional stimulus package that could go directly to the consumers.

The three-month Treasury bill Monday yielded 1.28 percent, up from 1.12 percent late Monday. The yield fell to 0.20 percent last Wednesday, meaning investors were willing to take the slimmest of returns in exchange for a safe place to keep their money.

The dollar was higher against other major currencies, while gold prices fell.

Dow ends up over 400 starting the week

Finally seeing some light Wall Street has had another big advance, with investors growing more confident in response to an improving credit market and comments from Federal Reserve Chairman Ben Bernanke who hinted that the government will take more steps to help the economy.

Here is a chart of the intraday trading for the Dow Jones today:

View the full .DJIA chart at Wikinvest