5. December 1, 2008
It's Official: U.S. Economy Enters Recession … in 2007
Dow 8,149 (down 679 points); trading range, 703 points
Start spreadin' the news -- the U.S. economy entered a recession 12 months ago.
But this headline from the National Bureau of Economic Research (NBER) combined with other weak economic data and more troubles in financials to drag down the Dow by nearly 700 points. In fact, 498 of the S&P 500 stocks posted a decline during the session.
Every sector showed weakness, as a disappointing manufacturing survey sank to the worst level since 1982, and weighed on trading. Financials took another severe beating as Oppenheimer uber-analyst Meredith Whitney opined that the credit card industry may cut credit lines by more than $2 trillion during the next 18 months. Meanwhile, Fed Chief Ben Bernanke laid out additional policy actions that may be taken to boost the economy.
