Barchart Stock Market Wrap – December 4, 2008

Commentary:

Investor worries about the reluctance of Congress to bail out the automakers and a growing recession led to a late sell-off today.

The day started off well, as the Labor Department reported a surprising drop in the new claims for unemployment insurance this week. After that, however, things started to deteriorate as the Commerce Department reported that factory orders fell 5.1% in October, more than the market was expecting.

While the leaders of Ford (F) , General Motors (GM) and privately held Chrysler were on capital hill pleading for a combined $34 Billion government bail-out, the markets continued to ponder a growing recession.

The Dow Jones Industrials closed down 215 to close at 8,376 for a loss of 2.5% today. The S&P 500 Index also was also lower, losing 26 points or 3%.


December Comex gold futures continued to fall, today dropping another $3.9 on concerns of a global recession.

The spot January crude oil futures fell $3 per barrel today on a Merrill Lynch report that predicted that crude oil could fall to $25 per barrel if the global recession spreads to China.

The December Dollar Index also was lower, by 48 points on profit taking.

Reports Due Tomorrow:

8:30 am – Department of Labor Unemployment Rate for November (expected at 6.8%, up from 6.5% in October).

Market Momentum: There were 798 advancing issues on the NYSE, with 2,376 declining issues. On the NASDAQ, there were 785 advancing issues with 2,046 declining.

New 52-week Highs: There were 5 issues reaching 52-week highs between the NYSE and NASDAQ

New 52-week Lows: There were 149 new 52-week lows on the NYSE and NASDAQ.