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In response to "Dow -308 -- nm" by ty97

Someone help me out here: Why is the Dow dropping so dramatically in response to falling oil prices?

Posted by ReluctantYuleLog (aka ReluctantCynic) Dec 12 '14, 13:14

I'm okay with economics, but this makes no sense to me. Wouldn't falling oil prices be good for business equity? Lower production costs, lower shipping and transportation costs, etc. etc. etc.

Responses:

I think it's dangerous to try to pin cause/effect on short-term market movements - ty97 Dec 12, 13:17 2
- Good point. I was going with the news reports I've seen saying the drop in the Dow was because of falling oil prices. - ReluctantYuleLog Dec 12, 13:25 1
  - Certainly, that's what every news report is going with. - ty97 Dec 12, 13:28
Poor economic indicators in China is part of it. - TWuG Dec 12, 13:17 7
- oil co overhead would remain steady, so when prices raise, they continue to make the same mark up but the profits to exp goes up dramatically -- nm - zeitgeist Dec 12, 13:36
- Ah-hah! Thank you. To you and Reagen. -- nm - ReluctantYuleLog Dec 12, 13:26
- Plus run of the mill uncertainty. - Reagen Dec 12, 13:18 4
  - Yay for selling at the top! -- nm - ty97 Dec 12, 13:21 3
    - if stocks could stay flat for about 6 months, that'd be awesome. -- nm - Reagen Dec 12, 13:23
    - (insert reference about baseball and RC's Mom here) -- nm - ty97 Dec 12, 13:22 1
      - I still flush with embarrassment. -- nm - ReluctantYuleLog Dec 12, 13:26

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Someone help me out here: Why is the Dow dropping so dramatically in response to falling oil prices?

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