News Column

BRIEF: Big-firm woes send stocks into dive

January 31, 2014

By Marie Szaniszlo, Boston Herald

Feb. 01 --Stocks tumbled yesterday after disappointing quarterly results from big-name companies including Amazon.com and ongoing turmoil in overseas markets, capping the toughest January for the U.S. stock market in four years. The Dow Jones industrial average dropped 149.76 points, or 0.9 percent, to close at 15,698.85, while the Nasdaq fell 19.25 points, or 0.5 percent, to 4,103.88, and the Standard & Poor's 500 index slipped 11.60 points, or 0.7 percent, to 1,782.59. Amazon.com dropped $44.32 , or 11 percent, to $358.69 , below what Wall Street was anticipating. Investors also were spooked by weaker than expected European inflation data showing that the recovery is still shaky there. But perhaps the biggest problem was the tumult in emerging markets -- such as Turkey , Argentina and India -- which have been reacting to local issues as well as the Federal Reserve's announcement this week that it was trimming another $10 billion from its bond-buying program, said Paul Edelstein , director of financial economics at IHS Global Insight in Lexington . "People who are concerned about risks are moving money out of stocks and into bonds," Edelstein said. "But I don't expect this to metastasize into further crisis." ___ (c)2014 the Boston Herald Visit the Boston Herald at www.bostonherald.com Distributed by MCT Information Services


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Source: Boston Herald (MA)


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