News Column

Stocks extend slide

August 2, 2014

By Ken Sweet, The Pueblo Chieftain, Colo.



Aug. 02--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 possible end to Federal Reserve stimulus, 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.

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

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.

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(c)2014 The Pueblo Chieftain (Pueblo, Colo.)

Visit The Pueblo Chieftain (Pueblo, Colo.) at www.chieftain.com

Distributed by MCT Information Services


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Source: Pueblo Chieftain (CO)


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