Dow Tumbles 216 Points After Big Losses in Overseas Markets

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A broad-based selloff on Wall Street followed another bout of heavy selling overseas Wednesday.

The Dow industrials (^DJI) tumbled 217 points, dropping back below the 15,000 level. It's the third triple-digit loss in six sessions. The S&P 500 (^GSPC) dropped 22 points and the Nasdaq (^IXIC) fell 43.

The selling was across the board, with declining stocks swamping gainers.

New York Stock Exchange
Getty Images
In addition to the big market losses in Japan and Europe, there's continued concern about when the Federal Reserve will start to close the spigot on its stimulus program. There's also concern about whether the Fed's bond-buying program is doing enough to revive the economy. The payroll-processing firm ADP (ADP) says private sector job creation last month was pretty weak.

Industrial, retail and financial stocks were big losers.

JPMorgan Chase (JPM) fell 1 percent on reports the company will lose more than 800-million on the debt an Alabama county restructures as part of its exit from bankruptcy. Among other financials, Blackrock (BLK) fell 3 percent, Citigroup (C) lost 2 percent, and Wells Fargo (WFC) 1 percent.

U.S. Bancorp (USB) fell nearly 1 percent after federal regulators filed suit, alleging the company failed to protect customer accounts from being raided by the defunct brokerage-firm Peregrine Financial.

In the tech sector, Microsoft (MSFT) edged down as a Deutsche Bank analyst lowered his rating on the stock to "hold." IBM (IBM), Intel (INTC) and Hewlett-Packard (HPQ) all lost around 2 percent.

And biotechs continue to lose ground. Celgene (CELG) and Gilead Sciences (GILD) dropped 4 percent each; Amgen (AMGN) and Biogen Idec (BIIB) fell more than 2 percent.

General Motors (GM) fell more than 2 percent after the Treasury Department said it would sell 30 million GM shares and a UAW Trust will sell another 20 million shares. The government acquired a majority stake in GM when it bailed the company out in 2008.

Among the few winners: Walgreen (WAG) said a key measure of sales rose more than expected last month. And Mattress Firm (MFRM) shareholders can sleep well. The stock jumped 5 percent on better-than-expected earnings.

-Produced by Drew Trachtenberg


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28 Comments

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Jawmore

How bout Obama administration do something way out of lefty dems normalcy????? Cut taxes across the board steeply and decrease government spending. Lefty dems say no way we want all america to be bankrupt like California. More taxes=more power.

June 06 2013 at 12:48 AM Report abuse +4 rate up rate down Reply
2 replies to Jawmore's comment
wilalbeck66

Yes sir I 100% agree what you have said it is Obama,s fault for passing his own bill in the first place smart

June 06 2013 at 3:44 AM Report abuse +2 rate up rate down Reply
wilalbeck66

Smart man I like what your thinking. He has spenting on for his whole family he just want to be rich and put a hurt on the middle class.

June 06 2013 at 3:46 AM Report abuse +2 rate up rate down Reply
GB

Could you, please stop advertising The Motley Fools' 'The Death of the PC'. I am entirely sick of see this crummy advertisement. They sure most have a lot of money tied up in that subject.

June 05 2013 at 10:46 PM Report abuse +2 rate up rate down Reply
1 reply to GB's comment
talari

I use icloud and phone for everything. PC issoon to be Pre Historic.

June 05 2013 at 11:33 PM Report abuse -1 rate up rate down Reply
boyadj45

if the fed stops doing it qe program and the market collapses, then this program was useless. The Fed has to keep interest rates low, otherwise our government will not be able to service the huge debt we have. But nothing makes sense anyway. Just 2 days ago a business person was sure the fed would keep printing money, then yesterday, a navy seal sixn transgender member of the fed, esther george said not for long. So, confusion reigns, and some will make money, and a whole lot of people will get screwed.

June 05 2013 at 9:27 PM Report abuse +1 rate up rate down Reply
ectullis

What goes up...

June 05 2013 at 9:10 PM Report abuse rate up rate down Reply
prinsovdarqnezz

If your money is in the stock market TAKE IT OUT NOW while you still have it. The 0WEbama economy is going to collapse.

June 05 2013 at 8:43 PM Report abuse rate up rate down Reply
driverchoiceab

this means nothing but a chance to buy watch with in a week there will be a big recovery the stock market is the biggest bs story going

June 05 2013 at 8:41 PM Report abuse +3 rate up rate down Reply
paddleman1928

the fed is pumping in 85BILLION/month-more than enough to counter any losses overseas-something else is happenning.

June 05 2013 at 8:13 PM Report abuse rate up rate down Reply
pepperoni0

The economy went bust in 2008. The Bush administration's profligate spending and deregulation gave Wall Street a license to steal in the Real Estate markets. There were "supplemental appropriations" to pay for the trumped up war in Iraq,thereby circumventing the budgetary processes, the largest tax cut in U.S. history in 2001, Social Security part D drug program, and then the collapse prior to the election in 2008.
All that has taken place since then is the run up in the stock market fueled by the creation of money by the Federal Reserve to bail out the banks. All it will take now for the entire global economy to collapse is for someone somewhere to actually default instead of papering over worldwide which is happening now.

June 05 2013 at 7:45 PM Report abuse -5 rate up rate down Reply
2 replies to pepperoni0's comment
setanta54s_back

peppi ?
keeping IT simple,FOR THE SIMPLE
and the SIMPLE
LOVE THOSE LITTLE DITTIES
like
diMs lied and the economy DIED......

June 05 2013 at 10:21 PM Report abuse -2 rate up rate down Reply
h.hughjardon

Why don't you robots ever cite exactly what bush deregulated? He must have signed something....and why do you robots always ignore the fact that obama signed war supplementals as well?

June 05 2013 at 10:45 PM Report abuse -1 rate up rate down Reply
Kevin

And tomorrow it will be up 300 points.....enough of this " the sky is falling nonsense".

June 05 2013 at 7:43 PM Report abuse -1 rate up rate down Reply
wongtpa

The Obama stooge media has convinced everyone that the economy is great. Not so and reality will soon set in. We are in for a correction and you will not enjoy watching your investments disappear.

June 05 2013 at 7:35 PM Report abuse +2 rate up rate down Reply