Just when stock investors dared to hope that the market's swings were over, the wild days are back.
As concerns about the euro zone escalated on Wednesday, the Dow Jones Industrial Average dropped 389.24 points, or 3.2%, to 11780.94. The decline was the Dow's biggest in seven weeks and the sixth largest for the year.
The Standard & Poor's 500-stock, as quoted by WSJ.com, index fell 3.7%, its worst one-day drop since Aug. 18, and tipped back into the red for the year. Just one of the index's 500 stocks, Best Buy, rose. Financials led the decline—the S&P Financials index dropped 5.4%—as concerns mounted that tumbling European debt values could hurt U.S. banks.
The decline followed several days of swings amid alternating optimism and fears about the likelihood of a resolution to Europe's debt crisis. The moves were reminiscent of the summer volatility. But many investors had been lulled by a strong stock performance in October, when the Dow gained 9.5%. That rise encouraged investors to predict that the market would continue its rally into the end of the year. They also had hoped to take their eyes off headlines in Europe to focus on company earnings and economic data in the U.S., which have showed signs of improvement. How about Indonesia stock market today? Here are stock recommendations provided by Bisnis Indonesia today:
e-Trading Securities:Jakarta Composite Index (JCI) may move in a limited rise within the range of 3,813-3,890 today. Several stocks to watch: UNVR, BJBR, and BMRI.
Yesterday, the index rose 1.36% or 51.7 points to 3,857.36 with total transactions of 8.3 million lots worth Rp5.5 trillion. Foreign investors recorded a Rp869.2 billion net buy.
Today, the JCI may fluctuate in a limited fain. The JCI may test a previous resistance level of 3,900 and support of 3,820. Yesterday, the index was underpinned by buy actions from foreign investors.
The JCI technically may swing within the range 3,830-3,910. Debt crisis in Greece and Italy remain the mover for the index. Several stocks to watch: UNVR, BJBR, LSIP, and ADRO.
Disclosure: No position at the stock mentioned above.
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