Stock Slump Continues on Thursday, ECB Fails to Act
PUBLISHED ON: Aug 2, 2012
Wall street continued its slump for the fourth day in a row on Thursday after a disappointing report from the ECB and President Draghi. The central bank said that they may purchase sovereign bonds, but did not come out with any immediate action, letting down many investors. Major US indices were all in the red by the end of the day and Knight Capital Group (KCG) reports about a $440 million loss due to yesterday's trading glitch. Weekly unemployment claims rose less than was expected yet overall retail sales were reported as higher than estimated for July.Robert Ramnarine of Bristol-Myers (BMY) was accused of insider trading. Both Sony (SNE) and General Motors (GM) saw drops in quarterly earnings. Gold, copper and oil all decreased between 1% and 3%.
Word on the Street
- The European Central Bank's inaction causes stocks to drop quickly and deeply.
- Knight Capital Group (KCG) loses $440 million due to trade errors on Wednesday.
- Unemployment claims are affected by annual auto closures, market needs time to heal.
- The US drought worsens in the Plains and food prices continue to soar.
- Brystol-Myers Squibb (BMY) executive is arrested on Thursday for insider trading accusations.
- Due to its troubled European division, GM (GM) sees a second quarter profit loss of 41% and plans changes.
- Navistar International Corp. (NAV) shares sink 14% as the SEC begins investigation.
- Coach (COH) Misses Estimates and Shares Plunge Nearly 20%.
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