This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Stocks Put Out of Misery by Closing Bell

NEW YORK ( TheStreet) -- Stocks on Friday extended losses spurred by Thursday's panicked selloff, easily making it the worst trading week of the year.

The Dow Jones Industrial Average had the ninth-worst weekly performance in its history, losing 5.7%. It shed 140 points, or 1.3%, during the session to close at 10,380. The S&P 500 finished the session down by 17 points, or 1.5%, at 1111 and was 6.4% lower on the week. The Nasdaq finished the week 8% lower, having lost 54 points, or 2.3%, to 2266 on Friday.

(The continued downturn came a day after the Dow lost 348 points, or 3.2%, to close at 10,520, its largest single-day fall since February 2009. The S&P 500 fell 38 points, or 3.2%, to 1128 on Thursday, while the Nasdaq lost 83 points, or 3.4%, to 2320.)

Both the Securities and Exchange Commission and the Commodity Futures Trading Commission are sifting through trading data leading up to the chaotic selloff and said conflicting trading rules across different markets may be one possible cause.

Friday's session was particularly rocky, with the Dow briefly venturing into positive territory but also losing as much as 279 points at one point to an intraday low of 10,241.

"The market is ignoring the cyclical power of the recovery," said Federated Chief Equity Market Strategist Phil Orlando, adding that the fundamentals of Friday morning's April jobs report were "off-the-charts phenomenal" but that markets were having a hard time getting past Europe.

"The fear is that since the (European Central Bank) has done nothing, the sovereign debt crisis in Greece will metastasize and jump the pond. There's a lot of concern about Europe going into the weekend with all these meetings coming up," Orlando said. "Anything can happen in the next couple of days, so no one wants to be long going into the weekend."

On Sunday, the International Monetary Fund's executive board comes together to act on the fund's portion of Greece's financial rescue package, according to Reuters.

Overseas, Asian markets reacted to Wall Street's staggering selloff . Hong Kong's Hang Seng lost 1.1%, while Japan's Nikkei shed 3.1%.

In Europe, German lawmakers approved their share of a financial rescue package for Greece , and the U.K. has a hung Parliament after the Conservative Party won the most seats in the national election but fell short of a majority.

The FTSE in London lost 2.6%, and the DAX in Frankfurt fell by 3.3%.

"Markets have had a tremendous run-up since 2009, so some correction was expected," said Andrew Neale, partner and head of wealth management at Fogel Neale Partners. "But corrections usually take place over weeks or months -- not 30 minutes! That's very frightening for investors. People don't like to see so much volatility," "I think there's a high probability that that we could go a little lower and that volatility will continue until we find a level that people are comfortable with."

1 of 5

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
AIG $59.43 0.34%
CSCO $29.42 1.60%
GS $209.19 1.40%
HPQ $33.61 0.69%
SXE $13.83 -1.50%

Markets

DOW 18,167.90 +126.36 0.70%
S&P 500 2,122.58 +18.38 0.87%
NASDAQ 5,100.7630 +68.0120 1.35%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs