Thursday, April 24, 2014
FAIRFIELD-SUISUN, CALIFORNIA
99 CENTS

After tough January, stock extend slide

By
February 04, 2014 | Leave Comment

For investors, February is starting off even rougher than January.

U.S. stocks tumbled on Monday, pushing the Dow Jones industrial average down more than 320 points after reports of sluggish U.S growth added to investor worries about the global economy. It was the biggest one-day decline for the blue-chip index in more than seven months. And the drop followed the Dow’s worst January performance since 2009.

The market stumbled from the get-go, with U.S. stocks opening lower after declines in European and Japanese indexes. Then it quickly turned into a slide as a spate of discouraging economic data on everything from manufacturing to auto sales to construction spending poured in.

By late afternoon, the sell-off accelerated further, bringing the Dow down more than 7 percent for the year. The S&P 500 index was down more than 5 percent for 2013.

Some stock watchers took the market’s decline in stride. They considered it a necessary recalibration following the market’s record highs at the end of last year.

“It’s a bit painful for investors to see the equities markets drop as they have, but this is healthy for this market,” said Chris Gaffney, a senior market strategist at EverBank. “We’ve been almost 2-1/2 years without a 10 percent correction.”

All told, the Dow dropped 326.05 points, or 2.1 percent, to close at 15,372.80, its biggest decline since June 20, 2013. The Standard & Poor’s 500 index lost 40.70 points, or 2.3 percent, to 1,741.89. The Nasdaq composite dropped 106.92 points, or 2.6 percent, to 3,996.96.

There were signs of worry throughout the market. The VIX index, a measure of stock market volatility, rose to its highest level since December 2012. Investors shifted into U.S. government bonds, pushing yields lower and extending their sharp decline since the start of the year.

Staffing company Robert Half International declined the most among stocks in the S&P 500 index. CarMax and Pfizer were among the few stocks to eke out gains on the day.

Cold U.S. weather emerged as common problem for the economy last month.

Investors were discouraged Monday by a private survey showing U.S. manufacturing barely expanded last month as frigid temperatures delayed shipments of raw materials and caused some factories to shut down. Construction spending rose modestly in December, slowing from healthy gains a month earlier.

Automakers also piled on the disappointing news, as an icy January slowed vehicle purchases.

Ford shares slipped 41 cents, or 2.7 percent, to $14.55 and General Motors shares fell 83 cents, or 2.3 percent, to $35.25 after the automakers reported a drop in U.S. January sales, hurt by harsh weather that kept customers away from dealerships.

GM sales fell 12 percent, while Ford said sales fell 7 percent. Chrysler bucked the trend with U.S. sales gains of 8 percent, and analysts still expect U.S. auto sales to reach more than 16 million this year – a return to pre-recession levels.

“Investors had expectations going into 2014 of a much stronger U.S. economic recovery than actually what we’re seeing and we’ve had to reset our expectations,” Gaffney said.

Fresh signs of weakness in China also weighed on the minds of investors.

An official Chinese manufacturing survey released over the weekend showed factory output grew at a slower rate in January compared with December. The report released on the weekend followed an HSBC survey that showed an outright contraction in manufacturing.

Any signs of slowdown in China’s economy — the world’s second-largest — can spell bad news because it drives exports and is a key trading partner for developing countries such as South Africa and Indonesia that supply Chinese factories with raw materials.

Investors have been looking for more pullbacks this year and possibly a correction, the technical term for when a stock market index like the S&P 500 falls 10 percent or more. Three months ago, analysts at Goldman Sachs said there was roughly a 60 percent chance that a correction would happen this year.

Monday’s slide moved the market closer to that possibility.

Among other negative signs for the market: In 2013, the Dow had only one 300-point-plus down day. It’s had two 300-plus drops in 2014, barely two months in.

“I think we are in correction phase and the bias will be to the downside for a while longer,” said Frank Davis, director of trading at LEK Securities. “It would make sense to see a healthy pullback after last year. Air has to come out of the market.”

All 10 sectors in the S&P 500 index fell, and telecommunications stocks posted the biggest declines, weighed down by AT&T and Verizon Communications.

Mattel fell $1.79, or 4.7 percent, to $36.05. The world’s largest maker of toys reported on Friday that sales of Barbie and Fisher-Price preschool items dropped in its fourth quarter.

Also among the decliners: Jos. A Bank Clothiers, which fell $2.83, or 5 percent, to $53.39 on continued doubts that a takeover bid by rival clothier Men’s Wearhouse will go through. The two retailers have been dueling since October when Jos. A. Bank offered $2.3 billion for Men’s Wearhouse.

A few stocks posted gains.

Pfizer rose 20 cents, or 0.7 percent, to $30.60, after the company reported that a mid-stage study of an experimental drug for advanced breast cancer met the main goals. The drug is seen as a potential huge seller. Pfizer was the only stock to rise among the 30 members of the Dow.

Facing lower stocks and global jitters, investors moved into the relative safety of U.S. government bonds. Bond prices rose, and the yield on the U.S. 10-year Treasury note fell to 2.58 percent from 2.65 percent on Friday. The 10-year has had a dramatic move in the last two weeks. In mid-January, the 10-year note was trading at a yield around 2.9 percent.

The Associated Press

The Associated Press

LEAVE A COMMENT

Discussion | No comments

The Daily Republic does not necessarily condone the comments here, nor does it review every post. Read our full policy

.

Solano News

Travis lines up 2 days of aviation excellence

By Ian Thompson | From Page: A1 | Gallery

 
Congressman talks Travis, water

By Barry Eberling | From Page: A1 | Gallery

 
Appreciate how good we have it now

By Angela Borchert | From Page: A2

 
Review set for $2M pizza case in Fairfield

By Ryan McCarthy | From Page: A3

Cherokee Nation to offer photo IDs at Rush Ranch

By Adrienne Harris | From Page: A3

 
Dixon May Fair has deals on advance tickets

By Amy Maginnis-Honey | From Page: A3

Accused machete attacker testifies in trial

By Jess Sullivan | From Page: A3

 
Garamendi talks love, pro football and Peace Corps

By Ryan McCarthy | From Page: A3, 1 Comment | Gallery

All Things Art Festival organizers seek artists, vendors

By Amy Maginnis-Honey | From Page: A3

 
Author to sign books at Vacaville Museum

By Amy Maginnis-Honey | From Page: A3

Kroc Center women schedule inaugural Taster Tea

By Amy Maginnis-Honey | From Page: A3

 
Theme park welcomes seal pup

By Adrienne Harris | From Page: A4

Mother’s Day fair returns to Suisun waterfront

By Ian Thompson | From Page: A4

 
Docents to lead paddling tour in marsh

By Adrienne Harris | From Page: A4

Juneteenth committee extends vendors, exhibitors deadline

By Amy Maginnis-Honey | From Page: A4

 
Congressional Art Competition is back

By Susan Hiland | From Page: A4

 
Spilled tomato juice case set for trial

By Ryan McCarthy | From Page: A4

 
Report: Shots fired from car on Clay Bank Road

By Adrienne Harris | From Page: A5

Fairfield police log: April 22, 2014

By Susan Hiland | From Page: A12

 
Suisun City police log: April 22, 2014

By Susan Hiland | From Page: A12

Suisun City police log: April 21, 2014

By Susan Hiland | From Page: A12

 
Fairfield police log: April 21, 2014

By Susan Hiland | From Page: A12

Weather for Thursday, April 24, 2014

By Daily Republic staff | From Page: B12

 
.

US / World

Syrian activists accuse Assad of new gas attacks

By The Associated Press | From Page: A1

 
Airport official: Teen had no clue he was in Maui

By The Associated Press | From Page: A5

Murder charge for Vallejo man in head-on crash

By The Associated Press | From Page: A5

 
California bill reignites affirmative action fight

By The Associated Press | From Page: A5

Andy Lopez protest leads to school campus lockdown

By The Associated Press | From Page: A5

 
Navy Cross bestowed on heroic Marine

By The Associated Press | From Page: A5

Bashtag: NYPD Twitter campaign backfires

By The Associated Press | From Page: A6

 
Soldier convicted in WikiLeaks case gets new name

By The Associated Press | From Page: A6

US weighs clemency for inmates jailed for 10 years

By The Associated Press | From Page: A6

 
Gun carry rights expanded in Ga. under new law

By The Associated Press | From Page: A6

First lady announces one-stop job site for vets

By The Associated Press | From Page: A6

 
Rail safety effort marred by squabbling

By The Associated Press | From Page: A6

Small Wyoming town evacuated after gas explosion

By The Associated Press | From Page: A6

 
Camilla’s brother dies in US after head injury

By The Associated Press | From Page: A10

Lawyer: US man held in Cuba seeks to go home soon

By The Associated Press | From Page: A10

 
Captain who left doomed ferry had 40 years at sea

By The Associated Press | From Page: A10

Russian social media CEO quits, flees country

By The Associated Press | From Page: A10

 
Amid Russia warning, Ukraine is in a security bind

By The Associated Press | From Page: A10

Palestinian rivals to try again for unity deal

By The Associated Press | From Page: A10

 
State senators get ethics training after scandals

By The Associated Press | From Page: A12

.

Opinion

Some Earth Day boos and cheers

By Jay Ambrose | From Page: A11

 
Question of the week: Will Flight 370 be found?

By Daily Republic | From Page: A11

Be the first and give specifics

By Letter to the Editor | From Page: A11

 
What we can do about crime

By Kelvin Wade | From Page: A11

Castro at odds with mentor on deportations

By Ruben Navarrette | From Page: A11

 
.

Living

Today in History for April 24, 2014

By The Associated Press | From Page: A2

 
Community Calendar: April 24, 2014

By Susan Hiland | From Page: A2

When Joe’s mad at me, he also ignores my 7-year-old son

By Kathy Mitchell and Marcy Sugar | From Page: A9

 
Horoscopes for April 24, 2014

By Holiday Mathis | From Page: A9

.

Entertainment

TVGrid

By Daily Republic Syndicated Content | From Page: B5

 
Amazon snares classic shows in deal with HBO

By The Associated Press | From Page: A7

Jodie Foster weds artist Alexandra Hedison

By The Associated Press | From Page: A7

 
Singer Chris Brown’s DC trial delayed for months

By The Associated Press | From Page: A7

Performing dogs go big after $1 million TV prize

By The Associated Press | From Page: A7

 
.

Sports

Girls soccer update: Armijo, Vanden on way to playoffs

By Paul Farmer | From Page: B1 | Gallery

 
Mustangs swim to sweep of Indians

By Marcus Lomtong | From Page: B1 | Gallery

Warriors, Clippers to meet in Oakland for Game 3

By The Associated Press | From Page: B1

 
Sharks confident with chance to sweep LA Kings

By The Associated Press | From Page: B1

Perez helps Rangers sweep A’s with 3-0 win

By The Associated Press | From Page: B2 | Gallery

 
Party a century in the making for Wrigley Field

By The Associated Press | From Page: B2

A’s reject 10-year Coliseum lease offer

By The Associated Press | From Page: B2

 
Prep softball: Vanden rolls to 14-0 win over Fairfield

By Daily Republic staff | From Page: B2

 
Prep badminton: Unbeaten Mustangs cruise past Crushers

By Daily Republic staff | From Page: B2

Prep boys golf: Vikings suffer SCAC loss to Panthers

By Daily Republic staff | From Page: B2

 
Sanchez’s slam in 11th helps Giants beat Rox 12-10

By The Associated Press | From Page: B2 | Gallery

Prep track: Armijo girls get win in MEL 4-way meet

By Daily Republic staff | From Page: B2

 
Emmert supports more efficient, effective NCAA

By The Associated Press | From Page: B3

Phelps having fun in his return to swimming

By The Associated Press | From Page: B3 | Gallery

 
Suns’ Dragic honored as NBA’s Most Improved Player

By The Associated Press | From Page: B3

Seahawks to open NFL season vs. Packers

By The Associated Press | From Page: B3

 
Oldest living ex-MLB player dies in Cuba at 102

By The Associated Press | From Page: B12

 
.

Business

Wellness programs grow more popular with employers

By The Associated Press | From Page: B5

 
Apple increases stock buyback, will split stock

By The Associated Press | From Page: B6

Sales of new US homes plunge 14.5 percent in March

By The Associated Press | From Page: B6

 
Buffett disapproves of Coca-Cola’s pay plan

By The Associated Press | From Page: B6

Amazon snares classic shows in deal with HBO

By The Associated Press | From Page: B6

 
US stocks edge lower after a six-day rise

By The Associated Press | From Page: B6

Facebook 1Q results soar; CFO to step down

By The Associated Press | From Page: B6

 
.

Obituaries

Phyllis J. Miller

By Nancy Green | From Page: A4

 
Jean Sophia Ruckdeshel

By Nancy Green | From Page: A4

Robert James Carty Sr.

By Nancy Green | From Page: A4

 
Dondi Martin

By Nancy Green | From Page: A4

.

Comics

Rose is Rose

By Daily Republic Syndicated Content | From Page: A8

 
Garfield

By Daily Republic Syndicated Content | From Page: A8

Pickles

By Daily Republic Syndicated Content | From Page: A8

 
For Better or Worse

By Daily Republic Syndicated Content | From Page: A8

Peanuts

By Daily Republic Syndicated Content | From Page: A8

 
Wizard Of Id

By Daily Republic Syndicated Content | From Page: A8

Dilbert

By Daily Republic Syndicated Content | From Page: A8

 
Baldo

By Daily Republic Syndicated Content | From Page: A8

Blondie

By Daily Republic Syndicated Content | From Page: A8

 
Baby Blues

By Daily Republic Syndicated Content | From Page: A8

Beetle Bailey

By Daily Republic Syndicated Content | From Page: A8

 
Sally Forth

By Daily Republic Syndicated Content | From Page: A8

B.C.

By Daily Republic Syndicated Content | From Page: A8

 
Frank and Ernest

By Daily Republic Syndicated Content | From Page: A8

Get Fuzzy

By Daily Republic Syndicated Content | From Page: A8

 
Zits

By Daily Republic Syndicated Content | From Page: A8

Cryptoquote

By Daily Republic Syndicated Content | From Page: A9

 
Crossword

By Daily Republic Syndicated Content | From Page: A9

Word Sleuth

By Daily Republic Syndicated Content | From Page: A9

 
Bridge

By Daily Republic Syndicated Content | From Page: A9

Sudoku

By Daily Republic Syndicated Content | From Page: A9