Well, this was an ugly week for Wallstreet. The major indexes tanked at least 4.0% or more.
Data with the first three weeks of January done:
DJIA = 12,099 / -8.8 %
Nasdaq = 2,340 / -11.8 %
S&P 500 = 1,325 / -9.8 %
Russell 2000 = 673 / -12.1 %
Azurik's Retirement = -2.5%
Azurik's Non-Retirement = 9.84%
My retirement account is the one with 40% bonds in it, helping alleviate my international and US exposure. My non-retirement account has individual stock picks and my whacky buys.
Here's Richard Jahnke's weekly wrap:
The stock market continued its slide during the past week, in more volatile trading, as a torrent of bad news in the financial sector and ongoing concerns about the housing and credit markets weighed on investor sentiment.
U.S. stocks eked out a modest gain on Monday, driven by strong preliminary results from IBM Corp. (IBM). The report helped offset weakness among retailers, after Sears Holding Corp. (SHLD) posted disappointing holiday sales and lowered its outlook for the fourth quarter.
The rebound in stocks was short lived, however. All three major averages plunged on Tuesday, following a disappointing quarterly report from financial giant Citigroup (C), which added to concerns that the economy could be headed for a recession.
For the fourth quarter, Citigroup posted a net loss of $9.83 billion, or ($1.99) per share, compared to a profit of $1.03 per share in the year ago period. The results included an $18.1 billion write-down on subprime-related losses as well as a $4.1 billion increase in credit costs for its U.S. Consumer segment. Although the charge-off was not entirely unexpected, it was far greater than the $8 to $11 billion estimate range the company provided in November.
Also adding to the market's decline were concerns about consumer spending and overall economic activity, after the Commerce Dept. reported weaker than expected retail sales for December.
The negative disposition continued through Wednesday, when the market digested disappointing results from technology bellwether Intel Corp. (INTC).
Intel for its part reported lower than expected fourth quarter revenues and earnings, and tempered its guidance for the first quarter due to U.S. economic indicators and a continued weak NAND pricing environment.
On the economic front, a government report showed core inflation trends remained steady. The December core CPI came in as expected at 0.2%, while total CPI was up 0.3%, ahead of the consensus forecast of 0.2% (although many were looking for 0.3%).
Also lending some support to the market were quarterly reports from JPMorgan Chase & Co. (JPM) and Wells Fargo & Co. (WFC), which showed that the problems in the credit markets are not being evenly felt by banks, as well as news that Oracle Corp. (ORCL) is acquiring BEA Systems (BEAS) in an all-cash deal valued at $8.5 billion.
The stock market extended its slide on Thursday, with a poor quarterly report from Merrill Lynch & Co. (MER), a worse than expected read on manufacturing activity, and rating agency warnings of potential downgrades of bond insurers fueling further worries about the economy.
Hurt by a hefty write-down and its exposure to bad mortgage bets, Merrill posted horrid results for the quarter. The investment bank posted a net loss from continuing operations of $10.3 billion, or ($12.57) per diluted share, on net revenues that plummeted to negative $8.2 billion. That was well below the consensus estimate for a loss of ($4.93) per share.
Ben Bernanke's testimony before a congressional committee also reaffirmed the market's concerns about the health of the economy and raised hopes for aggressive Fed action at its meeting later this month.
After opening higher Friday on strong results from Dow component General Electric (GE), and a better than expected outlook from IBM, the stock market turned lower during the session despite a plan presented by President Bush that calls for roughly $145 billion worth of tax relief and other incentives to boost the slowing economy and help stave off a recession.
0/2 with the name. With option expiration and the chart, I should have guessed they're going to try to pin it at $25.
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