Fox Business Network anchor and floor correspondent at the New York Stock Exchange Nicole Petallides was right in the middle of yesterdays’ spine-chilling slide of nearly 1,000 points in the Dow Jones Industrial Average, during which $1 trillion was briefly wiped off share values.
After finishing up her coverage of the markets, Nicole, who is also Greek and can comment on the issues in Europe, was nice enough to answer a few questions for Wall Street Pit.
Q: What was it like reporting from the floor of the exchange on such a historical day?
A: It was an historical day on Wall Street , the biggest intraday drop ever! I was impressed by traders who remained so cool during a time the Dow was diving lower like a falling plane. I worked hard to gather as many facts as I could, explain what was happens, give it perspective and not to instill panic. Those were my goals. My heart always races during moments like that and even though I have been here for over a decade, I have seen huge market swings and volatility, everyday is a new day and it is always somewhat intense at times. I really love the NYSE, the floor, the traders, the stocks, the stats. It gets my adrenalin running.
Market moves are technical, fundamental, and emotional. This was a day where all three collided. The New York Stock Exchange has strict rules which slow trading down, which saved some stocks here at the NYSE, but in other electronic markets they crashed, some even to just one penny such as Boston Beer (SAM) and Accenture (A CN). Later the NYSE and the NASDAQ together canceled all trades between 240pm and 3pm on stocks that moved more than 60% as there were technical glitches which moved the stocks too much.
Q. To what degree yesterday’s plunge has affected the already weak Greek markets?
A: While our dramatic market drop may have spooked investors around the globe, the short answer is none, no effect.
Greece’s benchmark ASE index dropped just as it has been dropping all week long. Friday it lost 3%. And for the entire week it dropped 13%.
There is market weakness globally on concerns about Greece’s debt, other Eurozone nations such as Spain and Portugal, and the currency itself the Euro. These worries are pressuring worldwide markets.
The Dow Dropped basically 1000 points but recovered quickly. If you recover its better and less painful, BUT If you finish at the lows of the day say down 9% then it would have really spread and pressured Asia and European markets drastically. Markets are dropping anyway this week. Europe is a concern for markets around the world.
One last thought, traders have said that the most significant effect it may have had is to rattle German Parliament into agreeing to the Greek Bailout.
Q. How is the debt crisis in Greece effecting the dry bulk shippers (for example: DRYS, NM, etc.)
A: They don’t really. While some shippers are based there such as Tsakos Energy (TNP) shippers are shipping globally. Many European nations hold Greece’s debt.
Shippers are actually trading higher today. A big bad global economy kills shippers. No orders, nothing to ship. No demand, nothing to ship. It’s a real supply and demand type business and not dependent upon Greece which is so small relative to other nations.