Wednesday, May 6, 2015
FAIRFIELD-SUISUN, CALIFORNIA
99 CENTS

S&P 500 has its worst week in 2 years

By
From page B6 | August 02, 2014 |

NEW YORK — U.S. stocks fell for a second day Friday, adding to the massive sell-off the day before and giving the market its worst week in two years.

Investors found little reason to move money into stocks, faced with the growing geopolitical concerns in Israel and Ukraine, as well as banking problems in Europe.

For the last two years investors have generally wanted to step in to buy any major fall in the stock market, traders said, causing any sell-off to be met the following day with modest buying. Traders said that the selling Friday, on top of what happened the day before, is not a good sign.

“The follow-through from yesterday’s (market drop) is very telling,” said Jonathan Corpina, a trader on the New York Stock Exchange with Meridian Equity Partners. “The end of this week could not come at a better time as the weekend might provide some stability.”

On Friday the Standard & Poor’s 500 index lost 5.52 points, or 0.3 percent, to 1,925.15. The index fell 2.7 percent this week, its worst weekly performance since June 2012.

The Dow Jones industrial average fell 69.93 points, or 0.4 percent, to 16,493.37. That’s on top of the 317-point drop the index had on Thursday. The Nasdaq composite fell 17.13 points, or 0.4 percent, to 4,352.64.

Energy and financial stocks were among the biggest decliners. Chevron, the nation’s second-largest oil and gas company behind Exxon Mobil, fell $1.34, or 1 percent, to $127.90. While Chevron’s earnings were better than analysts had predicted, the company’s oil and gas production fell in the quarter. Exxon also reported lower production when it released its own results Thursday.

Banking stocks also fell. JPMorgan Chase, Bank of America, Morgan Stanley and Goldman Sachs all slid roughly 2 percent.

On Friday, the International Swaps and Derivatives Association ruled that Argentina had officially defaulted on its bonds for the second time in 13 years, in what the ISDA calls a “credit event.” In a “credit event,” investors who own credit-default swaps, a type of insurance that protects against a bond issuer defaulting, are activated and the companies which wrote the policies must pay the investors who own them.

In Portugal, the struggling bank Banco Espirito Santo plunged 40 percent. Espirito Santo reported Wednesday a 3.5 billion euro net loss for the second quarter, and there were concerns the bank is insolvent.

The concerns over the Argentinian default and as well as with European banks were the biggest driver of Friday’s market decline, said Jonathan Golub, chief U.S. market strategist at RBC Capital Markets.

“The market doesn’t like anything that could potentially disrupt the credit markets,” Golub said, noting that indicators of market volatility jumped on Friday.

Adding to the uncertainty, investors had the violence in Israel and Gaza as well as Ukraine to worry about. A 72-hour ceasefire between Israel and Gaza collapsed early Friday. In Ukraine, violence between government and pro-Russian separatists escalated.

Ukraine’s unrest as well as the concerns over Espirito Santo weighed heavily on European markets. Germany’s DAX fell 2.1 percent, France’s CAC 40 fell 1 percent, and the FTSE 100 index fell 0.8 percent.

As global stock prices declined, traders moved money into investments traditionally seen as having lower risk Friday, such as U.S. government bonds, gold and utility stocks.

Investors did get some good news about the U.S. economy. The Labor Department said that U.S. employers created 209,000 jobs in July, while the unemployment rate rose to 6.2 percent from 6.1 percent. July was the sixth-straight month that U.S. employers created more than 200,000 jobs, a sign that the U.S. economy continues to recover. Economists also pointed out that the rise in the unemployment rate was likely due to more out-of-work people actively looking for jobs.

“In a nutshell, it’s a good report,” said Dan Greenhaus, chief strategist at brokerage firm BTIG in New York. “Not too hot, not too cold.”

The good news on the economy also means the Federal Reserve isn’t going to be there to hold investors’ hands for much longer. The central bank said Wednesday it would cut back its bond-buying program again, and investors now believe the Fed is looking to raise interest rates starting next year.

The Fed’s stimulus efforts, combined with the growing U.S. economy, have helped pushed the stock market higher. The last time U.S. stocks had a correction, meaning a decline of 10 percent or more in a benchmark index like the S&P 500, is nearly three years ago. They typically happen every 18 months.

Proctor & Gamble was among the day’s winners. The stock rose $2.33, or 3 percent, to $79.65. The consumer products giant said it earned an adjusted profit of 95 cents a share, four cents better what analysts had expected. P&G helped lift other consumer staples companies, making the industry the best performing industry in the S&P 500.

In other trading, the yield on the 10-year Treasury note fell to 2.49 percent and the price of gold rose $12.30 to $1,293.60 an ounce. Silver fell four cents to $20.37 an ounce.

The price of oil fell to the lowest level since Feb. 6. Benchmark U.S. crude oil dropped 29 cents to $97.88 a barrel, and ended the week with a loss of $4.21 a barrel, or 4 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

  • Recent Articles

  • Enter your email address to subscribe and receive notifications of new posts by email.

  • .

    Solano News

    Cinco de Mayo event brings communities together

    By Susan Hiland | From Page: A1, 2 Comments | Gallery

     
     
    Western Railway Museum plans special events

    By Kevin W. Green | From Page: A2, 3 Comments | Gallery

     
    Kozak to take command of 349th AMW

    By Ian Thompson | From Page: A3

     
    Solano events will mark National Day of Prayer

    By Amy Maginnis-Honey | From Page: A3 | Gallery

    Solano marks Mental Health Month during May

    By Kevin W. Green | From Page: A4

     
    Supervisors grant approval for internship program

    By Kevin W. Green | From Page: A4

     
     
    2 hurt in Fairfield freeway crash

    By Glen Faison | From Page: A6, 22 Comments

     
    Vacaville police announce training at outlet stores

    By Jess Sullivan | From Page: A6

    Doctor to discuss diabetes risks during free talk

    By Susan Hiland | From Page: A6

     
    Frazier sets community coffee with new chief

    By Ryan McCarthy | From Page: A6

     
    Caltrans announces work on Highway 160

    By Kevin W. Green | From Page: A6

     
    Caltrans outlines work on Highway 29

    By Kevin W. Green | From Page: A6

     
    Comedies, dramas, documentaries hit screens this weekend

    By Amy Maginnis-Honey | From Page: A7

    Suisun City police log: May 3, 2015

    By Susan Hiland | From Page: A9

     
    Fairfield police log: May 4, 2015

    By Susan Hiland | From Page: A9

     
    Fairfield police log: May 3, 2015

    By Susan Hiland | From Page: A9

    Suisun City police log: May 4, 2015

    By Susan Hiland | From Page: A9

     
    Author, evangelist to address Writers Resource group

    By Amy Maginnis-Honey | From Page: A10

    CHP officer has close call with vehicle

    By Ian Thompson | From Page: A10, 1 Comment

     
     
    .

    US / World

    Obama picks Dunford as new Joint Chiefs chair

    By The Associated Press | From Page: A1

     
    60 bodies recovered in Nepal valley hit by quake, mudslide

    By The Associated Press | From Page: A9

    Nigerian troops who fled Boko Haram now have them on the run

    By The Associated Press | From Page: A9

     
    Two decades after ‘Black Hawk Down,’ Kerry visits Somalia

    By The Associated Press | From Page: A9

    Doubts raised about Islamic State’s claim in Texas attack

    By The Associated Press | From Page: A9

     
    Forest Service chief expects busy firefighting season

    By The Associated Press | From Page: A9

    Van Gogh work fetches over $66 million at New York auction

    By The Associated Press | From Page: A9

     
    Senate adopts GOP budget targeting ‘Obamacare’

    By The Associated Press | From Page: A9, 2 Comments

     
    US reprimands agents after man forgotten in San Diego cell

    By The Associated Press | From Page: A9

    Huckabee, the other man from Hope, opens 2016 bid

    By The Associated Press | From Page: A9, 2 Comments

     
    Girl shoots self with father’s gun

    By The Associated Press | From Page: A11

    FAA gives OK for farmers to utilize drones

    By The Associated Press | From Page: A12

     
    .

    Living

    Today in history: Wednesday, May 6, 2015

    By The Associated Press | From Page: A2

     
    Community Calendar: May 6, 2015

    By Susan Hiland | From Page: A2

    Case of date rape from 30 years ago preys on husband’s mind

    By Kathy Mitchell and Marcy Sugar | From Page: B6

     
    Horoscope: May 6, 2015

    By Holiday Mathis | From Page: B6

    Weeknight vegetarian: Peel a plaintain, elevate a taco

    By The Washington Post | From Page: B7

     
    Feeling peckish for pesto? Don’t limit yourself to basil!

    By The Associated Press | From Page: B7

     
    .

    Entertainment

    TVGrid

    By Daily Republic Syndicated Content | From Page: A5

     
    Miley Cyrus on Bruce Jenner, pink armpits, her new charity

    By The Associated Press | From Page: A7

    Singer Chris Brown’s battery case in Las Vegas dropped

    By The Associated Press | From Page: A7

     
    Bono and U2 set as sole guests on Friday’s ‘Tonight Show’

    By The Associated Press | From Page: A7

    .

    Sports

    Conley comes back, leads Grizzlies past Warriors 97-90

    By The Associated Press | From Page: B1 | Gallery

     
    Vacaville grad Hekking signs with Chargers as free agent

    By Daily Republic staff | From Page: B1

    Prep badminton: Rodriguez gets MEL win over Armijo

    By Daily Republic staff | From Page: B1

     
    Prep boys volleyball: VCS falls to Golden Sierra in finale

    By Daily Republic staff | From Page: B1

     
    Armijo boys tennis team falls 5-4 in playoffs to defending champs

    By Daily Republic staff | From Page: B1 | Gallery

     
    Prep swimming: Rodriguez boys win MEL title

    By Daily Republic staff | From Page: B1 | Gallery

    Armijo opens playoffs with 6-0 win behind Nadia Martinez hat trick

    By Marcus Lomtong | From Page: B1 | Gallery

     
    Ryan Vogelsong pitches surging Giants to 6-0 win over Padres

    By The Associated Press | From Page: B1

    Local Report: Rodriguez boys swim to MEL title

    By Daily Republic staff | From Page: B1

     
    Chavez shines in A’s 2-1 victory over Twins

    By The Associated Press | From Page: B2 | Gallery

    Raiders to cut ties with James Jones, Miles Burris

    By The Associated Press | From Page: B2

     
    Raiders cut ties with 8 players

    By The Associated Press | From Page: B2

    Athletics release outfielder Cody Ross after short stint

    By The Associated Press | From Page: B2

     
    San Jose beats Houston 1-0 in Dominic Kinnear’s return

    By The Associated Press | From Page: B2

    With Wall out, Hawks beat Wizards 106-90 to even series 1-1

    By The Associated Press | From Page: B2 | Gallery

     
    Suit filed against Pacquiao for not disclosing injury

    By The Associated Press | From Page: B2

     
    Manny Ramirez Jr vows to make own baseball name for himself

    By The Associated Press | From Page: B2 | Gallery

    Derby winner nears return to track for Preakness prep

    By The Associated Press | From Page: B2

     
    NCAA’s new head of officials ready to make tough calls

    By The Associated Press | From Page: B2

     
    Former Raiders fullback Marv Hubbard dies

    By The Associated Press | From Page: B2

    49ers Bruce Miller charged with vandalism, not domestic case

    By The Associated Press | From Page: B2

     
    .

    Business

    Los Angeles sues Wells Fargo, alleging fraud by employees

    By The Associated Press | From Page: A9

     
    .

    Obituaries

    William Fay Carbine Sr.

    By Susan Hiland | From Page: A4

     
    Walter Jeter Jr.

    By Nancy Green | From Page: A4

    Lois G. Johnston (Lieb) (Bayard)

    By Nancy Green | From Page: A4

     
    .

    Comics

    Beetle Bailey

    By Daily Republic Syndicated Content | From Page: B5

     
    B.C.

    By Daily Republic Syndicated Content | From Page: B5

    Frank and Ernest

    By Daily Republic Syndicated Content | From Page: B5

     
    Peanuts

    By Daily Republic Syndicated Content | From Page: B5

    For Better or Worse

    By Daily Republic Syndicated Content | From Page: B5

     
    Baby Blues

    By Daily Republic Syndicated Content | From Page: B5

    Sally Forth

    By Daily Republic Syndicated Content | From Page: B5

     
    Dilbert

    By Daily Republic Syndicated Content | From Page: B5

    Pickles

    By Daily Republic Syndicated Content | From Page: B5

     
    Wizard of Id

    By Daily Republic Syndicated Content | From Page: B5

    Blondie

    By Daily Republic Syndicated Content | From Page: B5

     
    Zits

    By Daily Republic Syndicated Content | From Page: B5

    Baldo

    By Daily Republic Syndicated Content | From Page: B5

     
    Rose is Rose

    By Daily Republic Syndicated Content | From Page: B5

    Garfield

    By Daily Republic Syndicated Content | From Page: B5

     
    Get Fuzzy

    By Daily Republic Syndicated Content | From Page: B5

    Sudoku

    By Daily Republic Syndicated Content | From Page: B6

     
    Crossword

    By Daily Republic Syndicated Content | From Page: B6

    Bridge

    By Daily Republic Syndicated Content | From Page: B6

     
    Word Sleuth

    By Daily Republic Syndicated Content | From Page: B6