YO-YO DOW DIPS 127.28; 100-POINT SWINGS MAY SET TREND.Byline: Phil Serafino and Hal Paul / Bloomberg News New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of - Another day, another 100-point swing in the Dow Jones industrial average Dow Jones Industrial Average The best known U.S. index of stocks. A price-weighted average of 30 actively traded blue-chip stocks, primarily industrials including stocks that trade on the New York Stock Exchange. . For a 12th day in a row, the benchmark 30-stock average swung more than 100 points in a session. The Dow fell 127.28 to 7893.95 Thursday, rebounding some after after moving into a 174-point range. It hasn't moved less than 100 points in a day since Aug. 5, when it traded in a 45-point range. ``The 100-plus-point moves on the Dow, which have been commonplace since we got through 7,000, are standard operating procedure standard operating procedure Medtalk A technique, method or therapy performed 'by the book,' using a standard protocol meeting internally or externally defined criteria; a formal, written procedure that describes how specific lab operations are to be performed. for the market,'' said Scott Bleier, chief investment strategist strat·e·gist n. One who is skilled in strategy. Noun 1. strategist - an expert in strategy (especially in warfare) strategian market strategist - someone skilled in planning marketing campaigns at Prime Charter Ltd., a New York brokerage. The Dow industrials rose more than 1,800 points from the low April 11, and the stock market now is in a ``viciously volatile consolidation,'' Bleier said. Investors are jumpier because stocks are priced relatively high in relation to their earnings per share, he said. Traders said they weren't surprised that stocks fell Thursday, given that major indexes rose more than 1 percent in each of the past three days. ``If history is any key to the future, today we had to be down,'' said Bill Allyn, director of listed equity trading In finance, equity trading is the buying and selling of company stock shares. Shares in large publicly-traded companies are bought and sold through one of the major stock exchanges, such as the New York Stock Exchange, London Stock Exchange or Tokyo Stock Exchange, which serve as at Jefferies & Co. in Short Hills, New Jersey. ``Only three times in our history have we had a plus move of 1 percent or more three days in a row,'' he said. ``In every case it was down at least a percent and a half'' the next day. To be sure, with the Dow at such high levels, a 100-point move doesn't represent such a large percentage change as it did in the past, when the benchmark was lower, so it's natural that such moves would be more frequent. Still, analysts said stocks are moving more abruptly a·brupt adj. 1. Unexpectedly sudden: an abrupt change in the weather. 2. Surprisingly curt; brusque: an abrupt answer made in anger. 3. than in the past. Bleier and other technical analysts - who use past price and statistical patterns to chart the future direction of a stock or index - said the volatility portends further declines. ``The most positive thing for this market would be for volume and volatility to subside sub·side intr.v. sub·sid·ed, sub·sid·ing, sub·sides 1. To sink to a lower or normal level. 2. To sink or settle down, as into a sofa. 3. To sink to the bottom, as a sediment. 4. ,'' said Ricky Harrington, a stock market analyst at Interstate/Johnson Lane Inc. in Charlotte, N.C. ``This is greater volatility than normal.'' Harrington said the price swings indicate uncertainty among investors, as well as the presence of ``hot money'' - investors looking for Looking for In the context of general equities, this describing a buy interest in which a dealer is asked to offer stock, often involving a capital commitment. Antithesis of in touch with. quick profits who sell at the first sign of a decline. Those investors were a prominent feature of the market in the 1920s, leading up to the first great stock market crash, he said. ``The summer of 1929 is almost an exact duplication of this type of volatility,'' he said. ``That doesn't mean we'll see a replay, but it could mean we'll have a correction.'' Harrington said he expects a decline in the market between now and the end of September or October, and the Dow could move back to the low 7,000s. Bleier said the Dow is likely to trade in a range from 7,500 to 7,600 at the low end to 8,000 to 8,100 at the high end. ``As we approach September and October, the two worst months of the year (historically for the stock market), I think we are going to continue to have this wild trading,'' he said. Others don't see the market's prospects as so dismal dis·mal adj. 1. Causing gloom or depression; dreary: dismal weather; took a dismal view of the economy. 2. . ``The market's in great shape; there's just nothing out there that's going to burst the bubble that I can see,'' said Allyn at Jefferies & Co. ``We had a bad day, but it was as expected.'' |
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