U.S. stocks continued to drop, leading to the S & P 500 index’s biggest four-week loss since March 2009, due to fears of a global economic recession overshadowed the cheapest valuation in 2 1 / 2 years.
Hewlett-Packard (HPQ) fell 27 percent this week, the most since the October 1987 stock market crash, after a strategic shift of confidence, undermine its managers. Technology, industrial and materials companies in the Standard & Poor’s 500 index fell at least 6.9%, of which 10 groups the most. Caterpillar Inc. (CAT) and Alcoa (AA) fell more than 8.4%, some of the world’s largest banks – Morgan Stanley, JP Morgan Chase and Citigroup – lower economic growth forecasts.
Standard & Poor’s 500 index fell 4.7 percent, to 1,123.53. It has sunk 16 percent since July 22 for about three trillion U.S. dollars was erased from U.S. stock value, according to data compiled by Bloomberg. The Dow Jones industrial average fell 451.37 points, or 4 percent, to 10,817.65, down this week to expand its surroundings 1,863.51 points.
“We have a little bit of tug of war,” David Joy, a Boston-based chief market strategist at Ameriprise Financial, said in a telephone interview. His company is responsible for $ 693 billion. “On the one hand, there are real concerns about what happened in Europe, the pressure on the banking system and the global economic weakness on the other hand, an opponent’s strength seems to be interested in buying a stock valuations attractive.”
Since 2009, the cheapest
Standard & Poor’s 500 index fell 18 percent, from nearly 3-year high on concerns in Europe on April 29 the government debt crisis and global economic slowdown. August 8, promoted by the decline in the index valuation of 12.2 times reported earnings, in 2009, the lowest level since March. Its price-earnings ratio is now 12.3, compared with an average of 16.4 since 1954, according to data compiled by Bloomberg.
This week’s losses include Standard & Poor’s 500 Index return of 4.5% yesterday amid speculation that Europe’s banks lack sufficient capital. Lars Frisell, chief economist at the Swedish financial regulator said it would not spend too much inter-bank lending frozen. Market also declined, the U.S. jobless claims rise, the Philadelphia-area manufacturing decline the most since 2009, want more stimulation from the Fed receded.
Morgan Stanley Cyclical Index of companies most dependent on economic growth plummeted 10 percent this week to expand its losses, because the July 22 to 26% and dropped to the lowest level since August 26, 2010. Morgan Stanley economists forecast global economic growth this year, cut, and that the United States and Europe are “dangerously close to recession.”?