360° Coverage : Recent Gains Wiped Out As Market Sells Off

2 Updates

Recent Gains Wiped Out As Market Sells Off

Apr 10 2014, 4:34pm CDT | by

The NASDAQ composite closed down more than 3% Thursday at 4,054, its lowest close since early February when the market was still reeling from a January selloff. The S&P 500 closed down more than...

Filed under: news

 
 
 

27 weeks ago

Recent Gains Wiped Out As Market Sells Off

Apr 10 2014, 4:34pm CDT | by

The NASDAQ composite closed down more than 3% Thursday at 4,054, its lowest close since early February when the market was still reeling from a January selloff. The S&P 500 closed down more than 2% Thursday and the Dow Jones Industrial Average was down 1.6%. After a rocky start to April, the market closed up on Tuesday and Wednesday but the early week gains were more than wiped out by Thursday’s selloff.

In a blog post earlier this week Randy Frederick, Managing Director of Trading and Derivatives at the Schwab Center for Financial Research, warned of a coming correction encouraging traders to consider profit taking and adding hedges. He wrote, “For the past month, economic indicators have been flashing clear and consistent warning signs that a correction—or at least a sizable pullback—is coming, yet the SPX broke out to new highs last week. Does this mean the pullback or correction has been avoided? Probably just for now.”

In a phone call Thursday afternoon Frederick said he has seen a correction coming for about five weeks as indicators in the options markets indicated that people were preparing for a pullback. With no obvious news or data point driving stocks into the red Thursday — in the morning weekly jobless claims beat expectations and Tuesday Alcoa kicked off earnings season stronger than Wall Street anticipated — Frederick feels the correction is probably here. “I would be very surprised if the indicators I watch turn in a more bullish direction.”

He noted that the markets haven’t had a classic correction — down 10% or more — in two years (and only that recently if we count a 9.9% drop in Spring 2012). Five years into the bull market Frederick argues it is time to remove some “exuberance” and “frothiness” from the market.

Few stocks were immune from the slaughterer with popular names like Facebook, Tesla Motors and Netflix down more than 5% a piece. A concentration of new tech stocks, biotech names and social IPOs buttressed the NASDAQ when momentum stocks were soaring, but crushed the 2,498 stock strong index Thursday. Healthcare was the worse performing sector of the day, with the biotech industry dragging it down.

The consumer discretionary sector was the second worst performer. So far this year the consumer discretionary sector has dropped more than 5% after it was the best performer last year. Utilities, last years’ worst performer is now at the top. Frederick says this is because they are defensive dividend payers, that are attracting folks who are looking to replace income loss when interest rates fell.

The day’s few winners included Rite Aid which was up 8.4% on better than anticipated earnings results, as well as AT&T and Hewlett-Packard which were each up less than 1%.


Follow @samsharf/>

 
Update
2

7 weeks ago

Khazanah throws MAS RM6b lifeline

Aug 29 2014 5:01pm CDT | Source: Business Times Singapore

August 30, 2014 1:15 AMKHAZANAH Nasional will inject RM6 billion (SS$2.4 billion) over three years to resuscitate loss-making Malaysia Airlines (MAS) under a recovery plan that includes even an Act of Parliament. Other key moves are migrating its operations, assets and liabilities to a new company (NewCo) and slashing the workf ...
Source: Business Times Singapore   Full article at: Business Times Singapore
 

 
Update
1

7 weeks ago

MAS posts loss of RM307m for Q2

Aug 28 2014 5:00pm CDT | Source: Business Times Singapore

August 29, 2014 1:13 AMMALAYSIA Airlines (MAS) registered a loss of RM307 million (S$122 million) for the second quarter to end-June, but warned of worse to come in the second half when the "full financial impact of the double tragedies of MH370 and MH17" hits ho ...
Source: Business Times Singapore   Full article at: Business Times Singapore
 

 

Don't miss ...

 

<a href="/latest_stories/all/all/30" rel="author">Forbes</a>
Forbes is among the most trusted resources for the world's business and investment leaders, providing them the uncompromising commentary, concise analysis, relevant tools and real-time reporting they need to succeed at work, profit from investing and have fun with the rewards of winning.

 

blog comments powered by Disqus

Latest stories

Spanish nurse cured of Ebola
Madrid, Oct 21 (Xinhua) Spanish nursing auxiliary Teresa Romero was pronounced cured of the Ebola virus disease according to World Health Organisation (WHO) guidelines after the results of a second test confirmed Tuesday that she no longer had the virus in her blood.
 
 
Clinical trials of Ebola vaccine start Nov 1 in Switzerland
Geneva, Oct 21 (IANS/EFE) The World Health Organisation (WHO) announced Tuesday that it will begin clinical trials Nov 1 in Switzerland of one of the two anti-Ebola vaccines currently under development.
 
 
Colombia to launch world's first floating gas liquefaction plant
Bogota, Oct 21 (IANS/EFE) The world's first floating gas liquefaction plant is due to begin operating next year off the coast of northern Colombia under a pact between Canada-based Pacific Rubiales Energy and Belgian shipbuilder Exmar.
 
 
Paralysed man walks again after pioneering cell therapy
London, Oct 21 (IANS/EFE) A paralysed man has been able to walk again after therapy that involved transplanting cells from his nasal cavity into his spinal cord, the BBC reported Tuesday.
 
 
 

Latest from the Network

European Champions League standings
Paris, Oct 22 (IANS) Following are the European Champions League standings for Groups E to H after Tuesday's matches (tabulated under matches played, won, drawn, lost, goals for, against, points), according to Xinhua...
Read more on Sport Balla
 
Rogerio set to break Giggs world record
Rio de Janeiro, Oct 22 (IANS) Sao Paulo goalkeeper Rogerio Ceni is one victory away from earning his fourth Guinness World Record by eclipsing a mark held by Manchester United legend Ryan Giggs. The 41-year-old will...
Read more on Sport Balla
 
Ryan Reynolds can't keep his hands off Blake Lively
Ryan Reynolds was ''really sweet'' to Blake Lively at the Angel City Ball. The couple, who got married in September 2012, made their first red carpet appearance together in New York City on Monday night (10.20.14) since...
Read more on Celebrity Balla
 
Kris Jenner doesn't know who Bruce Jenner is dating
Kris Jenner has ''no idea'' whether Bruce Jenner is dating her best friend. The 58-year-old reality TV star, who split from the Olympic gold medallist last October after 23 years of marriage, claims she doesn't know if...
Read more on Celebrity Balla
 
When Rihanna dressed like 'Harry Potter'
New York, Oct 22 (IANS) Singer Rihanna was spotted here in a Harry Potter style costume. She wore the wizard-like get-up while heading for a business meal here Monday, reports mirror.co.uk. The 26-year-old combined a...
Read more on Celebrity Balla
 
Germany raises humanitarian aid to Iraq
Berlin, Oct 22 (IANS) Germany has pledged a further 20 million euros (about 25.5 million dollars) in humanitarian aid to Iraq, the foreign ministry said in a statement Tuesday. The additional funds are immediately...
Read more on Politics Balla
 
India calls on Israel, Palestine to resume peace process
United Nations, Oct 22 (IANS) India has called upon Israelis and Palestinians to resume the peace process as "dialogue remains the only viable option" to address the issues confronting the region. In a brief statement...
Read more on Politics Balla
 
Airstrikes help ground forces fight IS: Pentagon
Washington, Oct 22 (IANS) Kurdish forces are in control of the majority of the Syrian city of Kobane despite efforts by the Islamic State (IS) to take the town, a spokesperson for US defence department said Tuesday....
Read more on Politics Balla
 
Palestine, Israel urged at UN to halt unilateral initiatives
United Nations, Oct 22 (IANS) UN Secretary-General Ban Ki- moon Tuesday called on Palestine and Israel to overcome differences and halt unilateral initiatives that fuel mistrust, so as to pursue long-term stability in...
Read more on Politics Balla
 
China urges Israel to create conditions for peace
United Nations, Oct 22 (IANS) Chinese government has called on Israel to create necessary conditions for the resumption of peace talks with Palestine. At an open debate of the Security Council on the situation of the...
Read more on Politics Balla