On the economic front, the government reported that the consumer price index fell a record 1 percent in October and that new home construction was at its lowest level ever last month.
Bloomberg citedthe reports as proof the economy is in the worst recession in at least 25 years.
And Reuters reported the dimming prospects for an American auto bailout and the global financial crisis, which the European Central Bank chief called the worst crisis since World War II.
Representatives of countries that have national oil companies met in Beijing recently, and one participant described the tone of the meeting as “panic.” They are forecasting that the price of oil will drop to about $40 a barrel before rebounding to the $50 range.
Oil was trading at around $54 dollars a barrel in New York Wednesday morning, Nov. 19.
And in other economic news, BASF, the world’s largest chemical company, says it will temporarily close 80 factories and cut back production at another 100 plants.
On a more positive note, Investment News theorized that the stock market is in for a turnaround. Investors, both retail and institutional, have an estimated $4 trillion to $6 trillion at their disposal to spend in the market. As one analyst said, “There is a lot of cash sitting on the sidelines.”