Pre-open futures pointed to early weakness and that is what we have seen in the regular session. The Dow Jones Industrial Average (DJIA) is off more than 300 points, 3.1%, and flirting with the 10,000 level. The S&P 500 (SPX), Russell 2000 (RUT) and Nasdaq Composite (COMP) are off 4% . All of these indices are trading at new annual lows.
A quick glance to the sector action shows that the selling is fairly wide spread. Oil-related stocks and housing are the weakest areas. The Natural Gas Index (XNG) and Oil Service HOLDRS (OIH) are off 10% while the SPDR Homebuilders (XHB) is down 8%. Gold is popping as the streetTRACKS Gold (GLD) gains 4%. However, the Amex Gold Bugs Index (HUI) isn't following gold.
Chart Courtesy of Thomson Financial
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