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10A Daily News – Friday, August 19, 2011 NEW YORK (AP) — Just when Wall Street seemed to have settled down, a barrage of bad eco- nomic reports collided with fresh worries about Euro- pean banks Thursday and triggered a global sell-off in stocks. The Dow Jones industri- al average fell 419 points — a return to the wild swings that gripped the stock mar- ket last week. Stocks were only part of a dramatic day across the financial markets. The price of oil fell more than $5, gold set another record, the gov- ernment's 10-year Treasury note hit its lowest yield, and the average mortgage rate fell to its lowest in at least 40 years. The selling began in Asia, where Japanese exports fell for a fifth straight month, and contin- ued in Europe, where bank stocks were hammered because of worries about debt problems there, which Here we go again: Another big down day for Dow Wall Street have proved hard to contain. On Wall Street, the loss- es wiped out much of the roughly 700 points that the Dow had gained over five days. Some investors who bought in the middle of last week decided to sell after they were confronted with a raft of bad news about the economy: — More people joined the unemployment line last week than at any time in the past month. The number of people filing claims for unemployment benefits rose to 408,000, or 9,000 more than the week before. — Inflation at the con- sumer level in July was the highest since March. More expensive gas, food, clothes and other necessities are squeezing household bud- gets at a time when most people aren't getting raises. — Sales of previously occupied homes fell in July for the third time in four months — more trouble for a housing market that can't seem to turn itself around. This year is on pace to be the worst since 1997 for home sales. — Manufacturing has sharply weakened in the mid-Atlantic states, accord- ing to a report from the Fed- eral Reserve. Manufactur- ing has been one of the strongest parts of the econo- my since the recession ended in 2009, but its growth has slowed this year. The manufacturing news was especially bleak on an already bad day, said Dan Greenhaus, chief global strategist at brokerage BTIG. He called the Fed report ''an atrocious set of numbers.'' ''That really set the mar- ket on its head,'' he said. Wall Street and other financial markets have wrestled for several weeks with fears that a new reces- sion might be in the offing. Morgan Stanley economists said in a report Thursday What's your FAVORITE Tehama County "Hidden Gem?" A swimming hole, favorite hike, park site, fishing spot, Sunday drive, thing to do with kids? Share yours with us. If we use it in the October edition of $335.00 D NEWSAILY in Discount Coupons were published last week in the RED BLUFF TEHAMACOUNTY … And that does not Count all the ads offering percentage discounts, two-for-ones and Free-with-Purchase offers! Don't miss a Day of it! Subscribe Today 527-2151 It pays for itself. that the U.S. and Europe are ''dangerously close to recession.'' ''It won't take much in the form of additional shocks to tip the balance,'' they wrote. Worries about European debt also hang over the mar- ket. A default by any coun- try would hurt the European banks that hold its bonds, plus American banks that have lent to their European counterparts. Renewing the fears, The Wall Street Journal reported Thursday that U.S. regula- tors are looking at the U.S. arms of big European banks to make sure they have enough money for day-to- day operations. ''I don't want to pretend that the market knows what it's thinking about too much,'' said David Kelly, chief market strategist at JPMorgan Funds. ''We live in an environment of sell now and ask questions later.'' Asian markets started Thursday's drop. Japan's Nikkei 225 index fell 1.3 percent. The main stock indexes in South Korea and India each dropped a little more, then Europe more than that — 4.5 percent in Britain and 5.8 percent in Germany. In the United States, the Dow fell 419.63 points, or RED BLUFF COLLISION ✪Windshield Replacement $ starting at 200 ✪ Auto Detailing $ 50 off your 1st visit FREE Estimates 530.527.6160 915 Madison St., Red Bluff 3.7 percent, to 10,990.58. The Standard & Poor's 500 index fell 53.24, or 4.5 per- cent, to 1,140.65. The Nas- daq composite fell 131.05, or 5.2 percent, to 2,380.43. The Dow is down 13.6 percent since stocks began falling July 21 — four weeks that have rattled Americans watching their retirement savings and other investment accounts shrivel. Lee Applegate, a retired sales executive from Cincinnati, watched the lat- est market plunge uneasily but said he was planning to stay the course with his investments. He and his wife have several retirement accounts. He remembers the mis- take he made in pulling his money out of stocks in early 2009, just before the market started its two-year surge. Since March 9 of that year, the S&P 500 is up 68.6 per- cent. ''I think things are going to get worse before they get better,'' Applegate said. ''But I'm still going to ride it out.'' The selling Thursday was immediate. The Dow plunged from the opening bell and was down 528 points about a half-hour into trading. It essentially moved sideways for the next six hours. New York Stock Beef 'N Brew Sept. 17, 2011 Downtown Red Bluff Microbrew, vendors Beef appetizers Tickets @ Sparrow Antiques Main St. Exchange volume was 6.2 billion shares — busy for a summer day, but not as busy as during the worst of the selling earlier this month, when volume sometimes hit 9 billion. The yield on the 10-year Treasury note briefly fell below 2 percent for the first time. It hit 1.98 percent before rising to 2.07 per- cent. Investors are willing to accept a lower return on their money in exchange for safety. The price of gold reached yet another high — $1,829.70 per ounce. Gold keeps setting records bcause some investors are looking for stability and others are simply looking to cash in. The price of oil fell $5.20 to $82.38 per barrel after the economic reports raised concern among traders that demand for gasoline would fall. One survey this week found Americans have already cut back on gas 21 weeks in a row. And the average rate on a 30-year fixed mortgage fell to its lowest on record. The rate on the most popular mortgage hit 4.15 percent — just below the 4.17 per- cent reached last November. The last time long-term rates were lower was in the 1950s, when 30-year loans weren't widely available. James W. Tysinger, Jr. M.D. Eye Physician & Surgeon Fellow American Academy of Ophtalmology We accept Medical, Medicare & most Insurances Office Hours: Tues-Wed-Thurs 8am-4:30pm Mon & Fri 1pm-5pm For Emergencies, After Hours, Week-ends, Call 530-567-5001 345 Hickory St. Red Bluff Tel: (530) 529-4733 Fax: (530) 529-1114 You'll receive a $25 Gift Certificate good at the Tehama County business of your choice. Send to tehamamag@redbluffdailynews.com Before 9-15-11