WILLIAMS:
Good evening.
BRIAN WILLIAMS, anchor:
This was a
dark day
for the nation's finances and for millions of
Americans
with a financial stake in the markets, the very same
Americans
who are still processing the fact that our country has lost its top
credit rating
. Here's
the damage from today:
The Dow
down over 634 points, that's the sixth largest point drop in its history, the worst since '08.
Nasdaq
lost just about 7 percent of its total value.
S&P 500
lost 6.6 percent of its value in one day.
WILLIAMS:
The president went on television at midday to reassure
Americans
, but the damage was done. The markets continued to drop while he spoke, and the damage continues. It's a bigger systemic problem with no real end in sight. We begin our coverage tonight with
CNBC
's
Maria Bartiromo
. She's at the
New York Stock Exchange
.
Maria
, you won't see many days like this one in your lifetime.
MARIA BARTIROMO reporting:
It's true,
Brian
. What day today on
Wall Street
. After last week's sell-off and the credit downgrade by
Standard Poors
late Friday, anxieties had mounted over the weekend and all eyes were on
Wall Street
this morning. Stocks dropped right at the opening bell on
Wall Street
as the selling that started Thursday just kept going. Not a single stock on the
S&P 500
ended in positive territory.
Unidentified Reporter:
That's really bringing the market into the red.
Mr. ART CASHIN (UBS Director of Floor Operations):
There's concern that the
S&P
downgrade may do something to consumer confidence and thereby ease us a little closer to the infamous double dip that everybody's worried about.
President BARACK OBAMA:
Good afternoon, everybody.
BARTIROMO:
President Obama
came out to reassure investors.
Pres. OBAMA:
This is the
United States of America.
No matter what some agency may say, we've always been and always will be a
AAA
country.
BARTIROMO:
And while the markets sold off another 400 points after the president's speech, sales of
US Treasuries
remain strong, easing fears that interest rates might rise on mortgages, cars and student loans.
Mr. PETER FISHER (Blackrock, Inc.):
If the world's a risky place and investors are going to shed risk, they're not going to shed the least risky asset, which is still
US Treasury securities
.
BARTIROMO:
In an attempt to avoid a recession in
Europe
, the
European Central Bank
bought bonds to keep
Spain
and
Italy
afloat, but that may not be enough.
MICHELLE CARUSO-CABRERA reporting:
There's going to be a bigger burden on
France
and
Germany
. And the question is do they have enough money, do they have the will to bail out the other countries?
BARTIROMO:
Some investors sought safety in gold, sending gold prices up more than $61 to a new record high, while oil closed just above $81 a barrel.
$61.40 $1,710.20 Today
$5.57 $81.31 a barrel
Mr. DAN ARBESS (Perella Weinberg Partners):
Look around, the compass is spinning and investors are being turned upside down.
BARTIROMO:
Despite the chaos, investor
Dan Arbess
sees one possible advantage to the downgrade.
Mr. ARBESS:
Some day we will thank
S&P
for the credit downgrade. Is -- it is a message to
Washington
that we must begin to address the long-term solvency of the
United States of America.
BARTIROMO:
Next big event to watch, the
Federal Reserve
will meet tomorrow in its regularly scheduled meeting. Investors will be paying close attention to see if the fed says anything about the economy and whether it requires additional stimulus right now,
Brian
.
WILLIAMS:
All right,
Maria Bartiromo
starting us off from the floor of the exchange.
Maria
, thanks.
(Joe Heller / Green Bay Press Gazette, Politicalcartoons.com) Back to slideshow navigation
(John Darkow / Columbia Daily Tribune, Politicalcartoons.com) Back to slideshow navigation
(Randy Bish / Politicalcartoons.com) Back to slideshow navigation
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