Market Rally Dissolves Late in the Day
PUBLISHED ON: Aug 25, 2015
In trading today, markets made a huge swing from the black to the red. The Dow closed down 204.91 points, ending the day at 15,666.44. The NASDAQ posted a loss of 19.76 points and closed out the trading day at 4,506.49. The S&P 500 lost 25.60 and closed out the day at 1,867.61.
In overseas trading, markets were mixed. The biggest loss of the day came from Japan, which lost 705 points to close at 17,806.80. Elsewhere in Asia and across Europe markets were much more solid. The Hang Seng, which has been the source of much of the world's trouble recently, posted a gain of 153 points.
US Growth Drives Best Buy (BBY)Best Buy (BBY) gained 13% in trading today on the back of an excellent Q2 earnings report. The growth has mostly been concentrated in domestic markets, which have fared better than overseas opportunities. Best Buy posted gains on the day of 3.68 points and closed out trading at $32.95 per share.
Dow Ends the Day Lower after a Brief RallyMarkets opened today to a big surge in trading that saw the Dow post gains of over 440 points in intraday trading. It wasn't meant to last though, and by the end of the day markets had swung as much as 650 points and into the red. This is the largest one-day swing since the market's crash in October of 2008. This rally to the bottom was a huge disappointment for investors today.
General Electric (GE) Stock Opens Down 21%Shareholders were stunned this morning when General Electric briefly lost 21% of its value. It took awhile for traders to figure out what was happening, but by the time anyone had any answers the movement was over and prices had rebounded. GE looks to be the victim of a liquidity vacuum, a special circumstance where sellers can't find buyers in the marketplace.
This can cause prices to fluctuate wildly. In a fear-based market like the one we saw today, it can be hard for sellers to locate buyers. This time, prices hit lows that matched a major fall that took place on Black Monday in May of 1987. Pepsi (PEP) also experienced a liquidity vacuum today, and shed more than 20% of its value before a buyer was found and the stock rebounded.