Barchart Stock Market Wrap – November 19, 2008

Commentary:

Concerns over the slowing economy and a failure to bail out Detroit automakers drove the market down to nearly six year lows today.

The morning started off will more evidence of a slowing economy as the Department of Labor Consumer Price Index for October fell by 1%, the most in 61 years (expected at -0.8% from 0% in September).

Along with the record decline in the CPI, Housing Starts fell 4.5% to an annualized rate of 791,000, the sharpest decline since records have been kept. Housing Permits, a leading indicator of Housing Starts fell even sharper, by 12%, their sharpest decline in 48 years.

With Congress balking at bailing out Detroit, the overwhelming sense that the economy has no quick route to recovery encouraged today’s selling.

The Dow Jones Industrials closed 428 points for a loss of 5% today. The S&P 500 Index also was lower, falling 53 points or 6%.

December Comex gold futures managed only a weak rally of $0.9 today.

Spot December crude oil futures continued to fall, losing $1.28 per barrel today as some industry analysts are now predicting $40 barrel price targets.

The December Dollar Index was higher by another 35 points, on a safe haven play.

Reports Due Tomorrow:

8:30 am – Department of Labor Initial Claims report for the week of 11/15.

10:00 am – The Conference Board’s Leading Economic Indicators for October (expected at -0.6% versus -0.3% in September).

After the Market Closes – Dell (DELL) reports earnings (expected at 32 cents down from 34 cents last year).

Market Momentum: There were 187 advancing issues on the NYSE, with 3,025 declining issues. On the NASDAQ, there were 308 advancing issues with 2,610 declining.

New 52-week Highs: There were 3 issues reaching 52-week highs between the NYSE and NASDAQ

New 52-week Lows: There were 1,389 new 52-week lows on the NYSE and NASDAQ.