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Wall Street selloff; Dow falls 353 points – Christine Romans reports
It looks dismal on Wall Street this morning after the Dow faced its worst single day this year, plunging 353 points. And there's growing worry the bull market may be turning.
Christine Romans is covering the story.
“No sector was immune to the selling—banks battered, manufacturers mauled, homebuilders hosed,” Romans reports. "The pros on Wall Street say this was bound to happen, after months of gains and record highs.”
Ivan Watson: Cyprus banks reopen under tight security and strict 'draconian' measures, but 'situation's pretty calm'
For the first time since the euro was launched on Jan 1, 1999, a member country has restricted how much money individuals and companies can take across its borders.
The tiny island nation put the extensive measures in place to prevent a run on its banks as they reopened around noon local time (6 a.m. ET) for the first time since March 16.
Cypriots have been queuing at cash machines since then as it became clear that deposits would be raided as part of a bailout by the European Union and International Monetary Fund.
MYB: Cyprus banks open with strict limits
For the first time in nearly two weeks, banks in Cyprus will open for business Thursday, but there are strict limits on what residents can do with their cash. Christine Romans is minding your business with the effects of the situation in Cyprus on U.S. stock futures and world markets.
Data shows that the U.S. economy is recovering. "The U.S. is going in the right direction. Cyprus tells us and reminds us that Europe is going in the wrong direction," Romans says. That can hold back investors and stock. "Cyprus is a reminder to be cautious."
MYB: China is No. 2 for box office haul worldwide, Americans with debt now have more of it
Christine Romans is minding your business with the good, the bad and the ugly in U.S. stock futures and world markets. Stocks continue to hang on word from Cyprus. "Lawmakers there have to come up with a plan to raise money by Monday or else the European Central Bank will stop providing Cyprus with emergency cash," Romans reports.
And a mixed bag for who has debt in America. “Fewer Americans have debt,” Christine Romans says. Sixty-nine percent of people are in debt, compared to 74% in 2000. A major reason for this is that “people are laying off their credit cards. But for those who do have debt, they have a lot more of it—$70,000 compared with $52,000 in 2000. People over 65 saw their debt level double, because seniors are less likely to own their house outright and more likely to have unsecured debt, like student loans and medical bills.
Meanwhile, China is now the world’s second movie theater box office, second to the United States, Romans says. “The Motion Picture Association says ten movie screens are being built in China every day.”
MYB: Fed sees slow recovery continuing for years to come
Federal Reserve Chairman Ben Bernanke says the job market is improving, but must be sustained, Christine Romans reports. She has more from Bernanke's statements on the health of the U.S. economy.
MYB: Markets jittery with news Cyprus bailout is in jeopardy
Christine Romans is minding your business with the latest on U.S. stock futures and world markets. For Wall Street, it’s all about conditions in Europe this week. Stock futures are up right now, but the possible bailout for the tiny island nation of Cyprus has raised concerns in the market. “The Dow was whipsawed yesterday in this country because we're watching what happens there,” Romans reports.
“If Cyprus doesn't get a bailout, it could go bankrupt, exit the Euro-zone and lead to financial instability at exactly the wrong time for the world economy.” A big part of the $13 billion plan, a major bank fee, was rejected last night after protests in Cyprus. “And now a bailout of the country is in jeopardy.”
MYB: Cyprus bailout news leads to markets sell-off worldwide – Alison Kosik reports
Alison Kosik is minding your business this morning with the latest on U.S. stock futures and world markets.
Stocks around the world are selling off, and “you’re seeing the markets react right now,” Kosik reports.
“This is all about a little tiny island country in the eastern Mediterranean Sea, about the size of Rhode island, called Cyprus.” While it only accounts for 0.2% of GDP for the European Union, Cyprus needs a bailout and this is causing a massive ripple effect across the globe, Kosik says.
MYB: Dow in 10-day winning streak, today could be number 11
Christine Romans is minding your business with more on the Dow's ten-day winning streak. "Today could be number 11," she says. “And if that happens, it’ll be the best rally since 1992.” The S&P 500 is also within two points of its record high. A lot of this is due to signs of a slowly improving economy and the money the Fed is pumping into the economy, Romans explains.
MYB: Dow on best streak since 1996, Samsung unveils new Galaxy S4
Christine Romans is minding your business with more good news on U.S. stock futures and markets. The Dow has been up for nine straight days, its best streak since 1996. "Remember that movie 'Fargo'?" Romans asks. "That was the last time you saw a winning streak like this."
Also, the And Samsung is expected to unveil the Galaxy S4 today. Samsung and Apple have been competing heavily over their share of this market, Romans reports. "This is really an interesting food fight for dominance in the smartphone world."
MYB: VantageScore overhauling credit scoring model
Zain Asher is minding your business with a report on a new credit scoring system from VantageScore that could help millions of people. "Essentially, it’s gonna be more forgiving to anybody who is seriously in debt or has no credit history in this country.”
Currently, seven out of ten financial institutions use VantageScore, Asher reports. “But the bottom line is, you can't really control which scoring system your financial institution's going to be using,” she says. "So, you still have to make your payments on time.”
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