Market Recap: Stocks Fall, Marking The Worst Start On Record
Stocks are making it a pretty gloomy new year. Markets fall for a fourth day.
Stock indexes steadily declined as many investors failed to believe President Bush's $150 bln economic revival plan would succeed. Investors disregarded the positive quarterly performances of General Electric (GE) and Blackstone's (BX) decision to acquire Performance Food Group (PFGC), and, instead, focused on the negative stories of the day. For more President Bush's plan, read Professor Kevin Depew's Five Things You Need To Know.
The decline was the fourth consecutive day stocks fell, marking the worst start to a year on record. Read Toddo's Freaky Friday Potpourri.
A few retail names took a beating in today's session. Under Armour (UA) continued its decline after the company was downgraded by Wachovia. The firm recommended investors sit on the sidelines, citing uncertainty in the consumer and UA's line of products.
"It is going to need a blood-wicking fabric to clean itself after the selling today and yesterday," said retail specialist Professor Jeff Macke, "Yesterday, it was the rumor that UA was going to be ramping up the marketing spend to roll out new products. After the bell, UA made the rumor true, taking down near-term numbers in the process. Hell hath no fury like a cult-brand stock with slowing growth prospects…"
UA's stock plunged -24.42% to $28.01.
Sprint (S) shares tumbled 25% to $8.70. The company said it would cut 4,000 jobs after reporting a loss of 683,000 contract customers during the last quarter. For more analysis, read Professor Macke's Who's Holding Up In Retail?
In commodities, crude oil gained +0.48 to 90.61. Gold added +4.10 to 884.60. Silver finished +0.208 to 16.138, and copper was higher +5.40 to 322.45.
The dollar index finished +0.219 to 76.389.
Click on Minyanville's Buzz Bits for more summaries.
Below is a recap of some of the idea flow on today's Buzz & Banter. Please note that stocks may appear in both bullish and bearish categories, due to long and short term trades by our many Minyanville professors.
Some bullish trade or investment ideas: SLB, DE, AA, CAT, UTX, HON, SWKS, QCOM, BRCM, QQQQ, AAPL, ATVI, WMT, CROX, NYX, GSS
Some bearish trade or investment ideas: AAPL, CRM, DJIA, SLB, SII, HAL, SPY, UA, S
We earned our day off this week! Have a nice, long weekend.
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