This Day On The Street
Continue to site right-arrow
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 Under $10 with 50-100% upside potential - 14 days FREE!

Stocks Sell Off in Final Hour

Stocks in this article: ^DJI ^GSPC ^IXIC TESS MCD JPM AA

NEW YORK ( TheStreet) -- Stocks fell sharply in the final hour of trading on Thursday as tech stocks reversed early gains and mid-cap stocks came under fire.

The Dow Jones Industrial Average which was negative for most of the session, spiked lower in the final hour of trading. The blue-chip index finished down 76 points, or 0.7%, at 10,662. The S&P 500 slid 9 points, or 0.8%, to 1,125, dipping back below the key technical level of 1,130. The Nasdaq, which had been up the majority of the day, also succumbed to the selling pressure, losing 7 points, or 0.3%, to close at 2,327.

Walt Disney (DIS), JPMorgan Chase (JPM), General Electric (GE) and Bank of America (BAC) dragged the Dow lower, declining over 2% each.

Alcoa (AA) and Hewlett Packard (HPQ) were among the few gainers on the Dow, up 0.3% and 1.5% respectively.

Of the Dow's 30 components, 26 ended in the red. The index itself fell for a second straight session, but is still up 6.4% in September, historically one of the worst months for stocks.

From a sector standpoint, financials, transportation and capital goods stocks were among the worst hit. Overall market breadth on the New York Stock exchange was also very negative with decliners outnumbering advancers by a 7-2 ratio.

The session started out ugly as European equities markets were in broad decline after a survey of purchasing managers in the eurozone came in at 53.8, down from 56.2 in August. Ireland's economy also contracted, adding to concerns about Europe's economic recovery.

The FTSE in London lost 0.9%, and the DAX in Frankfurt was shed 0.4%. It was a quiet day for Asian markets, with Hong Kong's Hang Seng and Japan's Nikkei closed for holidays.

Then before the opening bell, the Labor Department said initial weekly jobless claims rose by 12,000 to 465,000 in the week ended Sept. 18, exceeding the 450,000 claims that economists had been expecting, according to Briefing.com.

Unemployment

"The 10-year average for unemployment claims is 393,000 and that included a period when we had a real estate boom. We are still about 70,000 above that average," Michael Pento, senior economist at Euro Pacific Capital, told TheStreet."Even though the so-called recession has ended, there is no job growth," said Pento, pointing out that even though layoffs may be slowing, companies were still not hiring.

In other economic news, the National Association of Realtors, which said existing-home sales rose to 4.13 million in August from 3.84 million previously, meeting Wall Street's expectations, according to Briefing.com.

The Conference Board's August leading indicators index rose 0.3%, exceeding expectations for growth of 0.1%. August's level compares with July's 0.1% increase.

Jay Suskind, senior vice president at Duncan Williams, said the morning's economic reports were pretty benign."Jobs data didn't suggest any type of rebound, reinforcing expectations for moderate GDP growth of 1% to 2%. Labor and housing are the two areas that are keeping the economy from improving so until there's a turnaround, the economy will continue to chug along."

1 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,778.15 +421.28 2.43%
S&P 500 2,061.23 +48.34 2.40%
NASDAQ 4,748.3960 +104.0840 2.24%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs