Market Watch 09/01/2009

Today, the weather is sunny.

Rumors about banks trouble drag stock market down, but the rumors were never

substantiated.

It’s really more psychological right now than anything.

On the surface, the day’s economic numbers were good. A deeper  look at the data gave

Some cause for concern.

Analysts said both the manufacturing and housing reports got a boost from government

stimulus efforts, including the Cash for Clunkers program that has since expired, which

means the recovery in those industries may not continue at the same pace. 

Among financial stocks, Bank of America Corp. fell $1.13, or 6.4 percent, to $16.46, while JPMorgan Chase & Co. dropped $1.79, or 4.1 percent, to $41.67. Citigroup Inc. fell 46 cents, or 9.2 percent, to $4.54.

There was one gainer in the Dow: Wal-Mart Stores Inc. rose 10 cents to $50.97.

The Dow dropped 185.68, or 2 percent, to 9,310.60. The index is down 270 points, or 2.8 percent, since Friday, its biggest drop over three days since July 7, when it lost 341 points.

The S&P 500 fell 22.58, or 2.2 percent, to 998.04, while the Nasdaq composite index fell 40.17, or 2 percent, to 1,968.89.