All ten sectors end lower led by consumer discretionary and energy sectors
U.S. stocks sold off sharply on Monday, 13 January 2014 resulting in
the worst losses for benchmark indexes in several months, on concerns
about the weak December jobs report and comments from a Federal Reserve
official about a further reduction in stimulus. The pullback in stocks
comes as investors worry that the stock rally looks stretched. Sellers
were the ones partying today as the indices spent the entire afternoon
in a steady downdraft.
The Dow Jones Industrial Average suffered the worst one-day drop shedding 179.11 points, or 1.1% to 16,257.94 by the close, falling for the fourth-straight session. The Nasdaq Composite finished 61.36, or 1.5%, lower at 4,113.30. The S&P 500 index closed down 23.17 points, or 1.3% to 1,819.20, snapping its two-day winning streak.
All ten sectors ended lower led by consumer discretionary and energy sectors.
Equities began the session with modest losses and spent the first three hours of action near their flat lines. The indices were able to inch back into positive territory during the late morning, but the move lacked conviction and failed to invite dip-buyers to the party.
Traders continue to digest last Friday's much-weaker-than-expected U.S. jobs report, which begins to suggest the Federal Reserve may have to taper its just-implemented tapering program. The big miss to the downside on non-farm jobs growth in December now makes upcoming U.S. economic data that much more important, to see if a trend of weaker reports is developing. The U.S. dollar index hit a two-week low on Monday and U.S. Treasury bonds hit a three-week high, in the wake of the dismal jobs report released Friday.
U.S. economic data on Monday was limited to the December Treasury budget, which showed a surplus of $53.20 billion after showing a deficit of $1.20 billion in December 2012.
This week, investors will also focus on retail sales and inflation data as well as earnings reports from large banks such as J.P. Morgan Chase & Co. and Goldman Sachs Group.
Among major stocks under focus, Twitter rose as high as 4% but eased by late trade and closed 1.4% after Goldman Sachs lifted its price target for the social media network to $65 from $46 and maintained a buy rating.
Bullion prices climbed on Monday, 13 January 2014 with prices holding ground at their highest in a month after two-consecutive sessions of price gains and last week's less-than-stellar U.S. monthly jobs data. The yellow metal brushed a session high of $1252.80 per ounce by late morning action. It eventually settled with a 0.4% gain at $1251.10 per ounce.
March silver also trended higher today. It broke into positive territory in late morning floor trade after trading as low as $19.97 per ounce earlier in the session. It touched a session high of $20.43 per ounce moments before settling at $20.37 per ounce, or 0.7% higher.
In overnight news, Iran and six world powers this weekend agreed to move to the next step in the winding down of Iran's nuclear weapons program. This put some pressure on crude oil markets, given the present embargo that limits Iran's oil being sold on the world market, which would end if Iran continues to cooperate with the major world powers.
Crude oil futures closed below $92 a barrel on Monday, 13 January 2014 giving back most of the sharp gain seen at the end of the previous week, with supply concerns hanging over the market after Iran and world powers agreed to implement a program later this month to curb Tehran's nuclear program.
Crude oil for February delivery fell 92 cents, or 1%, to settle at $91.80 a barrel on the New York Mercantile Exchange. February crude oil extended Friday's losses as it spent all of today's pit trade in negative territory. The energy component brushed a session high of $92.38 per barrel shortly after equity markets opened but slipped back below the $92 per barrel level. It brushed a session low of $91.65 per barrel moments before settling with a 0.9% loss.
Indian ADRs ended higher on Monday. In the banking space, ICICI Bank rose 1.14% at $36.41 and HDFC Bank added 1.07% at $34.09. In the IT space, Wipro gained 0.39% at $12.86 and Infosys was down 0.15% at $59.41. In the other sectors, Tata Motors was up 0.79% at $30.57 and Dr Reddy's Laboratories gained 1.03% at $43.10.
Tomorrow, December Retail Sales as well as December export prices ex-agriculture and import prices ex-oil will be reported at 8:30 ET while the November Business Inventories report will cross the wires at 10:00 ET.
The Dow Jones Industrial Average suffered the worst one-day drop shedding 179.11 points, or 1.1% to 16,257.94 by the close, falling for the fourth-straight session. The Nasdaq Composite finished 61.36, or 1.5%, lower at 4,113.30. The S&P 500 index closed down 23.17 points, or 1.3% to 1,819.20, snapping its two-day winning streak.
All ten sectors ended lower led by consumer discretionary and energy sectors.
Equities began the session with modest losses and spent the first three hours of action near their flat lines. The indices were able to inch back into positive territory during the late morning, but the move lacked conviction and failed to invite dip-buyers to the party.
Traders continue to digest last Friday's much-weaker-than-expected U.S. jobs report, which begins to suggest the Federal Reserve may have to taper its just-implemented tapering program. The big miss to the downside on non-farm jobs growth in December now makes upcoming U.S. economic data that much more important, to see if a trend of weaker reports is developing. The U.S. dollar index hit a two-week low on Monday and U.S. Treasury bonds hit a three-week high, in the wake of the dismal jobs report released Friday.
U.S. economic data on Monday was limited to the December Treasury budget, which showed a surplus of $53.20 billion after showing a deficit of $1.20 billion in December 2012.
This week, investors will also focus on retail sales and inflation data as well as earnings reports from large banks such as J.P. Morgan Chase & Co. and Goldman Sachs Group.
Among major stocks under focus, Twitter rose as high as 4% but eased by late trade and closed 1.4% after Goldman Sachs lifted its price target for the social media network to $65 from $46 and maintained a buy rating.
Bullion prices climbed on Monday, 13 January 2014 with prices holding ground at their highest in a month after two-consecutive sessions of price gains and last week's less-than-stellar U.S. monthly jobs data. The yellow metal brushed a session high of $1252.80 per ounce by late morning action. It eventually settled with a 0.4% gain at $1251.10 per ounce.
March silver also trended higher today. It broke into positive territory in late morning floor trade after trading as low as $19.97 per ounce earlier in the session. It touched a session high of $20.43 per ounce moments before settling at $20.37 per ounce, or 0.7% higher.
In overnight news, Iran and six world powers this weekend agreed to move to the next step in the winding down of Iran's nuclear weapons program. This put some pressure on crude oil markets, given the present embargo that limits Iran's oil being sold on the world market, which would end if Iran continues to cooperate with the major world powers.
Crude oil futures closed below $92 a barrel on Monday, 13 January 2014 giving back most of the sharp gain seen at the end of the previous week, with supply concerns hanging over the market after Iran and world powers agreed to implement a program later this month to curb Tehran's nuclear program.
Crude oil for February delivery fell 92 cents, or 1%, to settle at $91.80 a barrel on the New York Mercantile Exchange. February crude oil extended Friday's losses as it spent all of today's pit trade in negative territory. The energy component brushed a session high of $92.38 per barrel shortly after equity markets opened but slipped back below the $92 per barrel level. It brushed a session low of $91.65 per barrel moments before settling with a 0.9% loss.
Indian ADRs ended higher on Monday. In the banking space, ICICI Bank rose 1.14% at $36.41 and HDFC Bank added 1.07% at $34.09. In the IT space, Wipro gained 0.39% at $12.86 and Infosys was down 0.15% at $59.41. In the other sectors, Tata Motors was up 0.79% at $30.57 and Dr Reddy's Laboratories gained 1.03% at $43.10.
Tomorrow, December Retail Sales as well as December export prices ex-agriculture and import prices ex-oil will be reported at 8:30 ET while the November Business Inventories report will cross the wires at 10:00 ET.
