U.S. Stocks Slump, Pushing Dow Average to Brink of Bear Market
By Michael Patterson
June 27 (Bloomberg) -- U.S. stocks fell, pushing the Dow Jones Industrial Average to the brink of a bear market, on concern subprime-related writedowns at banks will worsen and record oil and a slowing economy will prolong the worst profit decline since 2002.
The Dow extended its retreat from an all-time high in October to almost 20 percent, the threshold for a so-called bear market. American International Group Inc. and Merrill Lynch & Co. helped send the Standard & Poor's 500 Financials Index to the lowest level since March 2003 on speculation of mounting losses. Consumer stocks in the S&P 500 slipped to a five-year low as oil topped $142 a barrel.
The Dow lost 115.29 points, or 1 percent, to 11,338.13 at 3:31 p.m. in New York, leaving it 6.51 points away from a bear market. The 30-stock measure fell 10 percent this month for the worst June since 1930. The S&P 500 slid 6.50, or 0.5 percent, to 1,276.65. The Nasdaq Composite Index slipped 11.80, or 0.5 percent, to 2,309.57. Seven stocks declined for every four that rose on the New York Stock Exchange.
If we ever wanted to bring these oil rich M.E. and commie countries to their knees we could do 2 things. Prohibit the sale of oil equipment (rigs) and parts along with bar any US company from doing business with them and cut off food exports.
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