14-Mar : Stocks Tumble; Dow Drops Over 200 Points

[LiuDeHua]

Stocks Tumble; Dow Drops Over 200 Points Equities Post Biggest One-Day Drop Since Feb. 3

By CHRIS DIETERICH

Updated March 13, 2014 4:38 p.m. ET

The Dow Jones Industrial Average tumbled more than 200 points on Thursday as soft economic data from China and rising tensions in Ukraine helped trigger the biggest one-day drop for U.S. stocks in more than six weeks.

Stocks have struggled to find traction in 2014 after a nearly unimpeded rally last year. Concerns over the true strength of the U.S. economy, turmoil in emerging markets and worries about Federal Reserve policy have kept investors on edge, making them reticent to buy stocks that are near all-time highs.

The Dow fell 231.19 points, or 1.4%, to 16108.89, notching its fourth decline in a row and biggest one-day drop since Feb. 3.

The S&P 500 slumped 21.86 points, or 1.2%, to 1846.34. Thursday's slump dragged the index 0.1% lower for the year.

The Nasdaq Composite Index fell 62.91 points, or 1.5%, to 4260.42.

There was no single piece of news driving the selloff. Stocks quickly turned lower in the morning and accelerated losses as the session progressed.

The sharp decline came as investors considered more weak data from China, the world's second-largest economy, and incremental developments in tensions between the West and Russia over Ukraine. High valuations for stocks as well as the S&P 500's decline below a key level of technical support likely contributed to the selloff as well, traders said.

Wall Street's trading desks saw investors seeking out haven assets amid the slide in stocks. Mohit Bajaj, director of ETF and portfolio trading services at broker WallachBeth Capital, saw some clients swapping out of U.S. stocks and into Treasury bond exchange-traded funds. "We've been busy," Mr. Bajaj said. "There is been rotation out of equities and into Treasury names."

Bonds rallied, with the yield on the 10-year Treasury note falling to 2.659% from 2.726% late Wednesday. Gold futures rose 0.1% to $1,372.20 a troy ounce, settling at a six-month high. Utility stocks, viewed as defensive, were the only of the S&P 500's 10 sectors to gain ground.

The Chicago Board Options Exchange Volatility Index, often called the market's "fear gauge," jumped 12% to finish at its highest level since February.

Despite the sharp declines, many traders said Thursday's activity didn't feature panicked selling and took place on average volumes. The S&P 500 posted a record high Friday, and investors have shown willingness to step in and buy stocks after big drops for the past year.

"We saw real selling, but certainly not panic," said Ian Winer, director of trading at Wedbush Securities.

Daily volume in the SPDR S&P 500 exchange-traded fund finished just slightly above its average over the past month, according to FactSet.

Recent gains for stocks, as well as uncertainty about the global economy, are enough to keep even bullish investors wary. Jerry Braakman, chief investment officer at First American Trust, prefers U.S. stocks to other markets, but has been concerned about China's soft economic reports.

On Thursday, Chinese industrial output in the January-February period rose less than expected from the year-earlier period and down from December. Retail-sales gains in January-February also undershot expectations.

"The market is looking for its next catalyst," said Mr. Braakman, whose firm oversees about $1.1 billion in Santa Ana, Calif. He anticipates "sideways" trading until greater clarity emerges on corporate earnings and the global economy.

In the U.S., data showed retail sales for February rose 0.3% on the month, slightly topping expectations. Excluding autos, sales grew 0.3%, also beating expectations. Initial claims for jobless benefits in the latest week fell by 9,000, more than expected, to 315,000, the lowest level since November.

The dollar fell 1.1% to 101.64 Japanese yen, while the euro fell 0.3% to $1.39 after European Central Bank President Mario Draghi said the central bank has been preparing additional nonstandard monetary-policy measures should the euro zone slide into deflation.

European markets fell, with the Stoxx Europe 600 ending down 1.1%.

China's Shanghai Composite rose 1.1%, after Chinese Premier Li Keqiang promised to keep economic growth at a reasonable pace this year. Japan's Nikkei Stock Average eased 0.1%.

Amazon.com Inc. climbed 0.2% after the company said it would raise the rate for its prime membership, which offers perks such as free and expedited shipping, to $99 a year from $79, the first price increase in the shipping and video-streaming service's nine-year history.

Dow component General Electric Co. fell 1.6% after the company said it filed for an initial public offering of its North American retail finance business.

Dollar General Corp. slid 2.8% after the discount retailer's quarterly profit fell below Wall Street expectations.

Williams-Sonoma Inc. rallied 9.8% after the housewares and furniture retailer's quarterly profit increased on higher sales, namely from its West Elm and Pottery Barn brands.

 

[Little_prince]

jialat. no wonder STI these few days chui.

[Ktglfc]

Just a normal correction ?!

[Neutrino]

A pull back has been on the cards for a week to 10 days now.

 

5 to 10% down.

Maybe not quite yet but shortly.

[Sabian]

Yawn

[Wt_know]

dow had cheong more than 3,000 - 4,000 points

down over 200points is sup sup water only!

dow is on QE viagra since 2009.

Edited March 14, 2014 by Wt_know

[Ktglfc]

The Chart looks so tempting for a major correction ...

[Wyfitms]

jialat. no wonder STI these few days chui.

 

very cui meh? still well above 3000

[Wt_know]

STI crashed 7pts .... sibei jialat ... lol

 

 

very cui meh? still well above 3000

Edited March 14, 2014 by Wt_know

[Rayleigh]

Of course most investors will not hold their position over this weekend. Its Crimea referendum leh. Anything can happen.