Blame the downturn of the housing market and rising unemployment as the reason for plummeting stocks.
The Dow Jones industrial average lost more than 280 points… 283 points to be exact and falling down to 2.4%.
The Dow finished 30 points higher on Wednesday as investors cheered falling oil prices.
The economy remains in a slump as home sales continue to dip down and less consumer spending; affecting the stock market.
On Thursday… Shares of Washington Mutual led the downward charge with a 13.3% loss.
Lennar decreased by 18.2%, Centex dropped 16.4%, KB Homes dipped to 15.4%.
Fannie Mae fell 19.9% while Freddie Mac dropped 18.4%.
U.S. automaker Ford reported an $8.7 billion net loss for the second quarter, falling 15.3%.
Investors are hoping to hear some good news on Friday as the report on durable goods orders, consumer sentiment, and new home sales are announced.
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Ford, Chyrsler, and …
Ford, Chyrsler, and GM are 3 patients who are on life-support and do not fool yourself, they soon will be going bankrupt. You do not just have Japanese competition, but you have Korean competition and next year India and China will be entering the American domestic market. Toyota is way ahead in Hybrid technology and always wins Consumer Guides Best Buys awards. Why do you think Detroit looks just as bad as Iraq and all the homes are gutted and boarded up. This is a shame.