Hardly a Market Correction... Yet
NEW YORK ( TheStreet) -- Unless you owned stocks in the precious metals mining sector, last week's market drop probably caused you some serious indigestion.
Yet the Dow Jones Industrial Average ended last week at 15,081.47, still ahead for the year by about 15%. That's not as good as the 19.5% gain for the DJIA reached on Aug. 2, but no one should be wringing their hands.... yet. Much will depend on what the Federal Reserve, and we should get some hints today when the Fed releases minutes from last month's Federal Open Market Committee meeting.
The S&P 500 index also had its biggest weekly decline since June, but the index is really down only just over 3% since it closed near the 1,710 level on Aug. 2.
Lennar has plunged 24% since its 52-week high on May 20 of $44.40, and Toll Brothers has fallen about 20% from its 52-week high on May 22 at $39.24. Some blame the stock market's malaise on "good news is bad news." For instance, new weekly unemployment claims were the lowest since 2007. That caused concern that the Fed will reduce its bond-buying program. Give me a break! How about the millions who have stopped looking for jobs because the only ones readily available pay close to minimum wage, or how about the millions who are under-employed for the same reasons?
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