Saturday, September 8, 2012

Stocks Extend Losses; Materials, Energy Plunge

Stocks are in a tailspin today, shaken by headlines suggesting that Greece could exit the euro zone. Materials and energy stocks are leading the market lower, and Nymex crude oil futures are trading near $90 a barrel.

Investors are fleeing to safer assets in droves; Treasury yields are falling as investors rush into the notes. And some people are willing to park their money in German bonds even though they’re getting a 0% return. Clearly their mattresses must be full to bursting with cash.

The Dow is off by about 150 points.

Materials stocks, which are often vulnerable to fears of a global slowdown, are falling. BHP Billiton (BHP) dropped 3.5%. US Steel (X) is off 4.8%.

Energy stocks also dropped. Chesapeake Energy (CHK) was recently down 3%.

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