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.

Biggest Price Decliners (CNB, PRSC) Colonial BancGroup

Colonial BancGroup Inc. has been hammered hard today posting a drop of more than 70%. Wow, in one day that is a lot to loose. They top the list of Biggest Percentage Price Decliners among common stocks on the New York Stock Exchange at midday on Thursday. Another bargain? Who knows. They way the market is behaving it could even fall more but if you are a risk taker this could be an opportunity for a quick gain.

Level 3 (LVLT) Shares Collapsing. Down over 40%

Always crazy volatile, Level 3 (LVLT) shares are collapsing today on concerns about the highly leveraged communications company’s prospects in the weakening economy. For Q3, the company posted revenue of $1.07 billion and a loss of 8 cents a share; revs were in line with the Street, and the loss was actually a penny better than expected. For the full year, Level 3 says it now sees adjusted EBITDA of $980 million to $1 billion, narrowing the range from its previous forecast of $950 billion to $1.1 billion. The company said it recently completed several “liability management transactions,” reducing its outstanding debt by $179 million; it also said that it is confident it has enough cash to repay $305 million in debt due in September 2009. Could this mean a great buying opportunity? At this price level? I think you could make a killing or lose some few bucks.

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.

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.