The Dow Jones ended the last trading session in the green but this was not
enough to push the index composite into positive territory last week. The
positive momentum that built through the trading session on Friday did not
appear to carry through the weekend to help opening this morning. Prior to
opening bell this morning, stock future tracking revealed the the major index
composites were posting red values during pre-market trading. The Dow Jones was
red by .51 percent at this point. The Nasdaq was .40 percent and the S&P 500 was
red by .61 percent. At open the market experienced sharp sell offs as Standard &
Poors lowered its outlook for Americas long term credit rating from stable to
negative. The outlook was based on the continuing political debate about the
United States fiscal problems and there is a one-in-three chance that the long
term rating could be lowered at some point in the next two years. At this time
policymakers have revealed separate plans to reduce the deficit but the gap
between the parties has left the U.S. with no specific plans to control the
ballooning deficit or contend with the fiscal deterioration. As sentiment drops
over the recent report from Standard and Poors, investors anxiously await for
members of the S&P 500 to reveal quarterly results. Approaching mid day the
major market indexes are trending in the red. The Dow plunged 214.14 points or
1.74% to 12,127.69. The Nasdaq dropped 52.44 points or 1.89% to 2,712.29. The
S&P 500 lost 21.91 points or 1.65% to 1,297.85. The U.S. Treasuries 10-year
yield remains flat at 3.41%. Oil drops 1.13 to $107.01 a barrel. Author: Pamela
Frost
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