Re: Nnuut's Account Talk
Our Old friend Greenspud is at it again!!
05/23/2007 - Updated 2:52 PM ET
Stocks turn lower after Greenspan's China comment
By Nick Godt, MarketWatch
Former Fed Chairman fears 'a dramatic contraction' in Chinese stocks
NEW YORK (MarketWatch) -- U
.S. stocks reversed morning gains and fell on Wednesday, after former U.S. Federal Reserve Chairman Alan Greenspan said on Wednesday that he feared a "dramatic contraction" in the Chinese stock market.
"It's not a major sell off, but the market has certainly reversed steam here," said Jay Suskind, director of trading at Ryan Beck & Co. "We've got light volumes and the market is a little tentative and nervous because of the strong market gains recently."
"Greenspan could be a catalyst for investors to take some profit, but not much more," Suskind said.
According to reports, Greenspan told a teleconference he feared a "dramatic contraction" in Chinese stocks, eventhough global growth wouldn't necessarily be derailed by the move.
The Dow Jones Industrial Average [
$INDU] was down 5 points at 13,534, after earlier hitting a new record high of 13,609, even as 20 of its 30 components still advanced. Weighing on the Dow were the likes of IBM [
IBM] , Intel [
INTC] , and McDonald's [
MCD].(more)
http://markets.usatoday.com/custom/usatoday-com/html-story.asp?markets=DOMESTIC&guid=%7BB5055DA4%2DA076%2D4C7B%2DA4DE%2DAA35A2D1B81D%7D