- Obama downplays IRS scandal, blames Obamacare rollout on ‘outdated’ agencies
- Pregnancies decline overall, up among older women
- Pentagon plans to destroy Syrian chemical arms on ship at sea
- Paris Metro issues ‘politeness manual’ to improve passengers’ behavior
- Justin Bieber, crew detained at Australian airport in drug search
- Lee Rigby trial: Muslim who machete-hacked soldier calls it ‘humane’ kill
- GM ending Chevy sales in Europe to focus on Opel and Vauxhall
- Putin’s diplomats to U.S. busted for living high life off $1.5M bilked from Medicaid
- Happy Meal: Couple goes to McDonald’s, leaves with bag packed with cash
- Boehner: It took me 3 to 4 hours to sign up for Obamacare
Stocks plunge after U.S. hiring dries up in August
European stocks sank as negotiations about Greece’s shaky finances appeared to break down. The fell even more after the U.S. jobs report. Germany’s DAX closed down 3.4 percent and France’s CAC-40 fell 3.6 percent.
Bank of America Corp., the nations’ largest bank, sank 8 percent after The Wall Street Journal reported that regulators asked it to develop emergency plans because of its sagging share price and the weakening economy. Bank of America is down 45 percent this year, largely on concerns about legal costs related to shoddy mortgage investments that it sold.
Other big banks dropped on separate reports that the government is preparing to sue some of them, also over mortgage investments they sold that lost value when the housing market collapsed.
The regulator of Fannie Mae and Freddie Mac, government-controlled mortgage agencies, says banks lied about the quality of loans that they pooled. Goldman Sachs Group Inc. and Morgan Stanley fell 5 percent. Citigroup Inc., Wells Fargo & Co. and JPMorgan Chase & Co. each lost about 4 percent.
Peter Tchir, a former trader who now runs the hedge fund TF Market Advisors, said stocks will likely be dragged down in the coming weeks by high unemployment, weak spending and a possible default by Greece, which he sees as increasingly likely.
“I expect that the S&P will go back below 1,100 sometime in September,” he said. “Whether we hit a recession or a contraction or not, it’ll remain weak, and Europe is going to hit a wall where the banks are going to have to take losses.” That would also hurt U.S. banks, he said.
Netflix Inc. plunged 9 percent after talks collapsed with a key provider of movies and TV shows. Starz Entertainment said late Thursday that it won’t renew a contract that allows Netflix to stream recently released movies and shows.
The Dow, S&P and Nasdaq all had their worst August since 2001 as economic fears and instability in financial markets and European banks added to investors’ worries.
Why such hatred toward America's freedom of religion?
- 'Hunger Games' delivers Obama's message on income inequality: liberal group
- Inside China: Nuclear submarines capable of widespread attack on U.S.
- Obama: Nelson Mandela now 'belongs to the ages'
- NAPOLITANO: Pope Francis should be saving souls, not pocketbooks
- Russian diplomats busted bilking $1.5 million from Medicaid
- Nelson Mandela, South Africa's first black president, dies at age 95
- PRUDEN: British press horrified as London's new mayor dares to proclaim the truth
- Hack attack: 2 million Facebook, Twitter passwords stolen
- Activists encourage Obama to circumvent Congress, use more executive authority
- Democratic infighting erupts over 'we can have it all' fantasy on entitlements
Independent voices from the The Washington Times Communities
Criticism may not be agreeable, but it is necessary. It fulfills the same function as pain in the human body. It calls attention to an unhealthy state of things.
Understanding economic events with a free market explanation
John Wood illustrates a new American politics, and the path to get there.
Interviews and show reviews from the Los Angeles punk scene past and present. Los Angeles has always been rich in punk rock talent since punk rock was born.
White House pets gone wild!