Archive for October 23, 2012

Captain Rick: DuPont, one of the world’s largest chemical companies that invented Nylon, Neoprene, Corian, Teflon, Mylar, Kevlar, Freon and much more issued a wake up call to the world today as it announced a cut of 1,500 jobs worldwide, about 2% of its global workforce. It also lowered earnings guidance for this year.

DuPont, headquartered in Wilmington, Delaware, had 70,000 employees worldwide at the end of last year. A component of the Dow Jones, DuPont’s stock fell 9% today, helping send the Dow into a nose dive today, loosing nearly 2% of its value.

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Captain Rick: Big sell off on Wall Street as a result of three major U.S. industrial companies filing disappointing earnings reports, igniting fears that the global economy is on shakier ground than previously expected. DuPont, a Dow component fell 9% after reporting weaker-than-expected quarterly earnings and announced plans to cut 1500 jobs worldwide. United Technologies lowered its forecast and 3M missed revenue estimates. Continuing uncertainty about economic health in Europe and China contributed. This was the biggest Dow dive since June.

In September, 2012, the Dow came within 4% of the all time Dow high of 14164.53 reached before the 2008 market crash. This correction knocks it back to –7.5% from the all time high. The Dow is still up 7.24% for 2012.

I see lots of uncertainty lying ahead with the U.S. facing the “Fiscal Cliff” in January, the fiscal problems in Europe and the degrading effect that all of it is having on the economy of China, which are all working in unison as ingredients brewing a very volatile global fiscal and economic storm. I will do my best to report the important elements.

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