Stocks close down after Dow's rally to 14,000
Stocks hit a big milestone, then promptly spun off the road.
Major indexes dived the most this year on Monday, the first trading day since the Dow broke 14,000 and closed at its highest level since the financial crisis.
The Dow Jones industrial average dropped as much as 143 points in afternoon trading. It closed down 129.71, or 0.9 percent, at 13,880.08.
The Standard & Poor's 500 index fell 17.46 points, or 1.2 percent, to 1,495.71. The Nasdaq composite index lost 47.93, or 1.5 percent, to 3,131.17.
The declines were the biggest drops this year for all three indexes. They followed a surge on Friday that pushed the Dow over 14,000 for the first time since 2007, before the financial meltdown that routed world markets.
Friday was only the 10th time in its history that the Dow closed above 14,000. The first was in July 2007; the rest were in October of that year. The index closed on Friday just 155 points shy of its record high, set that October.
The rally was powered by solid economic data, including a January jobs report that showed the labor market is strengthening gradually. A broad measure of manufacturing rose sharply.
The Dow is up nearly 6 percent this year. Yet, Wall Street's celebratory mood was a distant memory on Monday, as U.S. stocks followed European markets lower. France's CAC-40 closed down 3 percent, Germany's DAX, 2.5 percent.
“It started to look like things in the market are maybe getting a little ahead of themselves, compared to some of the data we've seen,” said Bill Stone, chief investment strategist at PNC Asset Management Group. He said problems in Europe are beginning to affect U.S. markets after several quiet months.
Borrowing costs for Italy and Spain rose on Monday, Stone noted, reflecting concerns among bond investors that those countries might be unable to meet their financial obligations.
“It kind of restarts some of the old worries that we've been able to ignore for quite some time,” Stone said.
In New York, Merck & Co. was among the Dow's biggest losers, dropping 98 cents, or 2.3 percent, to $40.85. The pharmaceutical company said on Friday that its earnings declined in the fourth quarter and that 2013 might be weaker than analysts had hoped.
Boeing was the only rising stock among the 30 in the Dow.
Show commenting policy
TribLive commenting policy
You are solely responsible for your comments and by using TribLive.com you agree to our Terms of Service.
We moderate comments. Our goal is to provide substantive commentary for a general readership. By screening submissions, we provide a space where readers can share intelligent and informed commentary that enhances the quality of our news and information.
While most comments will be posted if they are on-topic and not abusive, moderating decisions are subjective. We will make them as carefully and consistently as we can. Because of the volume of reader comments, we cannot review individual moderation decisions with readers.
We value thoughtful comments representing a range of views that make their point quickly and politely. We make an effort to protect discussions from repeated comments either by the same reader or different readers.
We follow the same standards for taste as the daily newspaper. A few things we won't tolerate: personal attacks, obscenity, vulgarity, profanity (including expletives and letters followed by dashes), commercial promotion, impersonations, incoherence, proselytizing and SHOUTING. Don't include URLs to Web sites.
We do not edit comments. They are either approved or deleted. We reserve the right to edit a comment that is quoted or excerpted in an article. In this case, we may fix spelling and punctuation.
We welcome strong opinions and criticism of our work, but we don't want comments to become bogged down with discussions of our policies and we will moderate accordingly.
We appreciate it when readers and people quoted in articles or blog posts point out errors of fact or emphasis and will investigate all assertions. But these suggestions should be sent via e-mail. To avoid distracting other readers, we won't publish comments that suggest a correction. Instead, corrections will be made in a blog post or in an article.
- Calgon Carbon poised for explosive growth
- Russian steel to lose duty shelter
- CMU spinoff’s CEO gets council honors
- Rural communities can’t shake effects of subprime crisis
- Market sell-off offers opening
- Natrona Bottling Co. keeps soda pop operation focused on craft, taste
- Chevron puts $20M into educating, training Appalachian workers
- Amid struggles, top fiscal executive to leave EDMC
- Open enrollment puts varied impact of health care law back in focus
- PPG Industries to buy Westmoreland Supply paint store chain
- High pollution levels found near Ohio gas wells