Daily Investment Interpretations

July 24, 2008

2008-7-24:  The indices took a tumble. The S&P 500 fell 29.65 points (2.31%) to 1,252.54, or about 52 points above its July 15th intra-day low. The NASDAQ shed almost 46 points to close at about 2,326. The Dow deflated 283 points (2.43%) to close at 11,349.28. The VIX obligingly rose 2.13 points to close at 23.44. The proximate causes for this loss of faith seems to have been dismal earnings reports, including, particularly, the Ford Motor Company, which is converting three manufacturing plants from trucks to small cars, and which announced a $9 billion loss for the quarter. Jobless claims crossed the recessionary "400,000-Rubicon" to 406,000. Sales of existing homes in June fell to their lowest level in a decade. Thirty-year, fixed-rate mortgage rates surged from last week's  6.26% to 6.63%. 
    Taken all in all, it was not a salubrious day. (In the meantime, one of my best investment advisories feels that the bottom has been seen, but isn't ready to bet money on it yet.)