September 22nd, 2010
05:36 PM ET

Stocks slump, gold surges amid recovery worries

A look at highlights from the day's business news:

Stocks slump, gold surges

Stocks slumped Wednesday, with the Dow ending a five-day winning streak, as gold prices hit new highs and investors remained on edge about the recovery.

The Dow Jones industrial average finished 22 points lower, or 0.2 percent, and the S&P 500 lost 6 points, or 0.5 percent.

The Nasdaq declined 15 points, or 0.6 percent, as the tech-heavy index was dragged down by Adobe's 20 percent plunge. Investors were disappointed after the software developer said sales and earnings for its next quarter might fall short of expectations.

Stocks already have logged significant gains in September and are still on track to post the biggest monthly gains since April 2009. So far this month, the S&P 500 is up more than 8 percent.

Gold futures continued their march toward $1,300 an ounce. Gold for December delivery climbed $17.80 to settle at all-time high of $1,292.10 an ounce, after posting a new intra-day record of $1,298.00 earlier.

Short-term Treasury yields near record lows

Treasury yields slipped Wednesday, a day after the Federal Reserve voiced concern about deflation and said it was prepared to provide additional support to the economy, if needed.

"After evaluating the Fed's statement, the market is focused on the explicit reference to inflation being below the level of the Fed's mandate," said Richard Bryant, head of Treasury trading at the Williams Capital Group.

Yields on short-term Treasurys hovered around record lows Wednesday. The five-year yield fell to 1.29 percent, near its all-time closing low of 1.26 percent. The two-year yield continued to sit near its record low of 0.43 percent, which it hit Tuesday.

Yields on longer-dated Treasurys also sank, pressured by the Fed's comments about inflation remaining low. The yield on the benchmark 10-year note fell to 2.54 percent from 2.58 percent late Tuesday, while the 30-year bond yield dropped to 3.75 percent from 3.79 percent.

–- reporters Hibah Yousuf and Blake Ellis contributed to this report.

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Filed under: Business • Economy
soundoff (3 Responses)
  1. Keith Hormuth

    This happens alll the time and only bothers people with extra money to invest so just blame Obama.

    September 22, 2010 at 5:41 pm | Report abuse |
  2. Prophet

    The Dow is still rocking for the year!

    September 22, 2010 at 7:19 pm | Report abuse |
  3. V07768198309


    Our economy is slowly dying, it is kept alive artificially. No one is proposing a solution because no one has the slightest idea of why it is happening and many have vested interest in the present system. However an objective observation of the phenomenon can help us understand it and provide us with an innovative solution. Of course we can't solve the problem with the tools that brought us there in the first place and we need a new ideology.


    – Do you feel that your ideology pushed you to make decisions that you wish you had not made?

    – Well, remember that what an ideology is, is a conceptual framework with the way people deal with reality. Everyone has one. You have to - to exist, you need an ideology. The question is whether it is accurate or not. And what I'm saying to you is, yes, I found a flaw. I don't know how significant or permanent it is, but I've been very distressed by that fact.

    – You found a flaw in the reality...(!!!???)

    – Flaw in the model that I perceived is the critical functioning structure that defines how the world works, so to speak.

    – In other words, you found that your view of the world, your ideology, was not right, it was not working?

    – That is - precisely. No, that's precisely the reason I was shocked, because I had been going for 40 years or more with very considerable evidence that it was working exceptionally well.


    An Innovative Credit Free, Free Market, Post Crash Economy

    A Tract on Monetary Reform


    September 22, 2010 at 9:15 pm | Report abuse |