Career News 24/7: STOCKS GET SLAMMED, DOW DIVES MORE THAN 200 POINTS: Here's What You Need To Know, June 5, 2013

Wednesday, June 5, 2013

STOCKS GET SLAMMED, DOW DIVES MORE THAN 200 POINTS: Here's What You Need To Know, June 5, 2013

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Wednesday, June 5, 2013

Stock markets around the world got rocked today.

First the scoreboard:

Dow: 14,960, -216.9 pts, -1.4%
S&P 500: 1,608, -22.4 pts, -1.3%
NASDAQ: 3,401, -43.7 pts, -1.2%

And now the top stories:

The global market sell-off started in Japan after Prime Minister Shinzo Abe unveiled his latest plan — dubbed the "third arrow" — to get the economy off the ground. "Abe shot an arrow in the air," said UBS's Art Cashin. "It may have hit him in the foot." Japan's Nikkei plunged nearly 4% reflecting the market's disappointment.
It's jobs week in America, and things aren't looking too hot. This morning, ADP estimated that private U.S. companies added just 135,000 jobs in May, which was below the 165,000 forecasted by economists. The "odds of a strong report on Friday have just gone down considerably," said economist Ian Shepherdson referring to the upcoming official jobs report from the Bureau of Labor Statistics.
But according to Gallup, job creation activity is at its highest level since April 2008.
In another report, we learned that unit labor costs plunged by a stunning 4.3% in Q1, which was much worse than the modest gain estimated by economists.
In other bad news, factory orders climbed by just 1.0% in April, falling short of economists' expectation for a 1.5% gain.
Today's sell-off puts the S&P 500 almost 5% below its May 22 high.
"Something happened in the middle of May," said investing god Jeff Gundlach as he began his webcast last night. "Volatility has re-entered the global equity markets." WHAT IN THE WORLD IS GOING ON? Jeff Gundlach Answers This In His Fantastic New Presentation" >
"From our perspective, very little analysis, process and common sense is being applied by many investors when making investment decisions at current levels," said BMO Capital's Brian Belski who was criticizing investors for bidding the stock market as high as it has been. "In fact, we are getting the sense that too many investors are currently expecting higher stock prices tomorrow just because they were higher today."
But Belski's voice doesn't reflect the consensus on Wall Street. "We increase our year-end target for the S&P 500 to 1,730 (from 1,640) and introduce an end-2014 target of 1,900," said Credit Suisse's Andrew Garthwaite.
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