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Rough Day for Stocks, Scary Warning on Housing

Dow falls more than 400 points
By Newser Editors,  Newser Staff
Posted Oct 23, 2018 9:25 AM CDT
In this file photo, a trader works on the floor of the New York Stock Exchange.   (AP Photo/Richard Drew, File)

(Newser) – It's shaping up to be a bleak day on Wall Street, with the Dow falling more than 400 points at the open. The S&P 500 and Nasdaq were in similar straits. The Wall Street Journal chalks up the declines to lousy earnings reports from blue chips Caterpillar and 3M, along with global worries such as weak economic growth in China and tensions in Saudi Arabia over the death of journalist Jamal Khashoggi. Elsewhere:

  • Scary warning: Think real estate can be your hedge from the stock market? A post at MarketWatch includes a warning from an analyst—one who predicted the 2008 crash—that will not make for pleasant reading. The US "household wealth boom since the Great Recession is a sham, a farce and a gigantic lie that is tricking everyone into believing that happy days are here again even though the engines that are driving it are bubbles that are going to burst and cause a crisis that will be even worse than the 2008 crash,” says Jesse Colombo of Clarity Financial. (Dig in here for details on why Colombo sees a bubble.)
  • A bright spot: One of the few stocks having a good day Tuesday is McDonald's, reports the Street. The chain posted strong third-quarter earnings and surpassed analysts' expectations.
(Read more stock market stories.)

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