Opening Bell: 1.21.08

Posted by Joe Weisenthal, Jan 21, 2008, 7:37am

globestand.jpgMajor Indexes Drop Sharply On Worries Over U.S. Economy (WSJ)
An ugly start to the week on a global level with, with several world indexes dropping in the 4-5 percent range. Of course, it's all because they're worried for us, supposedly. The Indian market, which has held up strong lately, gave up 7.1 percent. Thankfully we have the day off. We still need some time to cool our jets.

Oil Falls Below $89 on Economy Concerns (Reuters)
At least with all of these stock market sell offs, the price of the dirty stuff is coming down as well.

SEC urged not to revive "terrorist" watch list (Reuters)
This is an idea that should probably be relegated to the dustbin of history. The SEC, apparently, offered a tool at one point to help investors search which companies did business in terror-sponsoring countries. Granted, it's easy enough to do a word search for Iran if you're interested in seeing what comes up among filings, but specifically hiving off a section for companies that may have an investment in Iran or Syria seems a bit ridiculous, no? The SEC is currently deciding whether to bring back the tool.

The Super Bowl Point Spread (CrossingWallStreet)
It's the Giants +13 or +14. Interestingly, the spread is being set extra high in order to induce underdog betters, since there's the perception that the Giants have no chance. So if you think there's a distortion, get your bets in.

Back in the Black (American)
This is the most shocking piece of business news we can recall seeing in a long, long time. The NHL is a profitable enterprise. We were sure that America' 6th or 7th biggest sports league (behind NFL, MLB, NBA, NASCAR, PBA, Arena League and the Professional Bullriding Tour) was a big ol' money sink, but things are actually okay. Not great, mind you. Very few people watch the game anymore, but with some financial engineering and cost containment, it would appear that the NHL will remain a going concern, which is definitely good.

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Comments

Posted by Erin Burnett's Booty Call, Jan 21, 2008 1:42PM

This place is eerily quiet while international financial markets crumble all around us.

Posted by 1-2, Jan 21, 2008 1:59PM

It's quiet because all US traders can do is sit, cry, and hope they can trade some futures...

a/o right now...
DJIA INDEX 11,592.00 -514.00
S&P 500 1,265.10 -60.20

Posted by dude where's my hedge?, Jan 21, 2008 2:18PM

ugliest day in years! everyone too busy checking they still had a shirt i think!

Posted by 1-2, Jan 21, 2008 2:24PM

Good thing my 145 SPY puts expired in december and i never rolled them over...shoot me

Posted by , Jan 21, 2008 2:24PM

Fed 100 bp rate cut to the rescue, followed by stagflation

Posted by 1-2, Jan 21, 2008 2:27PM

[14:23] 1-2: fucking transfer payments DONT INCREASE GDP
[14:23] 1-2: it's simply shuffling the deck chairs on the titanic
[14:23] 1-2: hmmm...lets move all these chairs to the front since the ship is sinking from the stern. that should even things out.
[14:23] 1-2: rediculous

btw, im on vacation in Aspen and this is what im doing with my day. I think it's time to hit the slopes. Maybe if i blow out my good knee (severed my ACL in the bad one) i can focus on something other than my P.A. being destroyed tomorrow.

Posted by jag, Jan 21, 2008 2:33PM

1-2: actually, a transfer payment that reduces taxes and increases government spending would, by definition, increase GDP.

Posted by , Jan 21, 2008 3:18PM

I'm gonna puke. 1-2 @2:27, you're almost always a very insightful poster, but you lost me today with the Aspen comment. Smacks of being proud to be tethered to your blackberry, even when the slopes are beckoning. I'm reading "Is anyone as important as me - I paid for an Aspen vacation that I'm unable to enjoy. Who can truly top that?" You need to redeem yourself fast. Hopefully, by tomorrow when things get cookin again these comments (yours and mine) will be buried, beyond everyone elses notice.

Posted by anon4life, Jan 21, 2008 3:52PM


Is it any coincidence that this is taking place during a US Holiday? I think not.

Posted by , Jan 21, 2008 4:03PM

Before you go crying conspiracy, remember that the futures on the US market are trading. Not exactly the same as the cash market, but enough action so that the US can hardly be considered shut tight today.

Posted by , Jan 21, 2008 4:11PM

Dow already down 4.5%. The trading curbs kick in @ 10%?

Posted by Calgary Schmooze, Jan 21, 2008 4:14PM

TSX closed down 604.98 or -4.74%. One commentator said that had NY been open, Toronto could have slid 15%.

So, thanks, I guess...

Posted by Eh, Jan 21, 2008 4:15PM

It is surprising that this is happening on a US holiday - generally things are very slow in Canada when the US is closed. Having said that, the US being closed has fuelled the panic selling that we're seeing here.

Posted by , Jan 21, 2008 4:18PM

so is it thanks (4:14) or no thanks (4:15) to the US? (how bout them leafs)

Posted by Calgary Schmooze, Jan 21, 2008 4:21PM

Thanks for not playing "pile-on" today. Tomorrow is another story. I'm going to go look for another cardboard box to extend my real estate holdings.

Posted by Erin Burnett's Booty Call, Jan 21, 2008 5:08PM

I tried to mortgage my house today so I could load up on banks tomorrow morning, but for some reason my loan app was rejected.

Posted by anon4life, Jan 21, 2008 5:39PM

All I meant is that cleary there is reduced liquidity today. I know stock index futures are open, that's my primary trading vehicle. It's just that this is not the first time in the past couple of years that we've seen extreme moves occur on a US holiday. Conspiracy? No. Is the holiday a factor? Definitely.

By the way, I recommend that most people rebalance their portfolios with canned goods and shotgun shells.

Posted by , Jan 21, 2008 6:01PM

ummmm, does anyone have a backup plan? I kind of signed on the to this whole Street thing and it suddenly doesnt seem to be working out like I thought it would.

Posted by they just fired a bunch of my colleagues, Jan 21, 2008 6:21PM

it sucks to be an associate in this type of market if you have not yet made enough to bolster the brokerage acct.

6:01 pm - hang in there

Posted by Ken Houghton, Jan 21, 2008 6:39PM

A "course for financial success" that does not include major television exposure?

This one appears based on the strength of the Loonie.

Posted by Ken Houghton, Jan 21, 2008 6:44PM

A "course for financial success" that does not include major television exposure?

This one appears based on the strength of the Loonie.

Posted by Calgary Schmooze, Jan 21, 2008 7:03PM

@6:01: start trying to corner the market on cardboard sofa boxes. it gives "The Street" new meaning.

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