This Day On The Street
Continue to site
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

U.S. Stocks Drop in August

NEW YORK ( TheStreet) -- Major U.S. stocks dropped Friday as traders hesitated to make any major moves amid the session's thin volumes heading into the long Labor Day weekend and after tepid reports on U.S. consumers.

The S&P 500 closed down 3.1% for August, the largest monthly drop since the index fell 6.3% in May 2012.

The S&P 500 lost 0.32% to close at 1,632.97. The index dropped 1.8% for the week. The Dow Jones Industrial Average dropped 0.21% to close at 14,810.31. The blue-chip index decreased 1.3% for the five-day trading period. The Nasdaq was off 0.84% to close at 3,589.87. The tech-heavy index slid 1.9% for the week.

Apple (AAPL - Get Report) shares were down 0.95% to $487.05 as the world awaited Apple's iPhone 5S, reported to come in just 12 days. With plenty of rumors and speculation being bandied about, it's important to separate the truth from the half-truth from the ridiculous, wrote TheStreet's Chris Ciaccia.

The Bureau of Economic Analysis said consumer spending for July increased by a less-than-expected 0.1%, down from an upwardly revised 0.6% in June. The personal income measure rose by a smaller-than-expected 0.1% as well, below the increase of 0.3% from the prior month. Economists, on average, were expecting personal income to rise 0.2% and personal spending to edge up 0.3%.

The final estimate on the University of Michigan Consumer Sentiment Index came in at 82.1, the lowest level in four months in the face of rising interest rates and growing geopolitical tensions. Though the number is up from 80 in the preliminary August report, its remains below July's 85.1. Economists were expecting a print of 80.5.

Concerns about the global effect of a U.S.-led air strike against Syria appeared to have become more muted as the Obama administration looks more and more alone in its proposal to act on evidence of a Syrian government-initiated chemical weapons attack against civilians.

In a public statement Friday afternoon, Secretary of State John Kerry continued to underscore the importance of taking action to undermine dangerous regimes and disarm terrorist groups around the world to ensure global security, but emphasized that diplomacy and negotiations rather than military action would be key for any real resolution. "History will judge us all extraordinarily harshly if we turn a blind eye," he said. Any type of military action against Syria would be a limited, tailored response, Kerry added.

Still, he revealed some lack of support in the global community for a U.S.-led military intervention in Syria, saying that the "U.N. cannot galvanize world to act as it should," as the Secretary-General of the United Nations Ban Ki-moon asserted that the organization would not confirm who has been using the chemical weapons in Syria. The organization will only affirm that such weapons were used. On Thursday, British lawmakers voted down British participation in a military intervention; the U.S. had been counting on the U.K. to be a key ally for this initiative.

Despite the broader market declines, certain individual stocks were grabbing the spotlight. (CRM - Get Report) on Friday was the biggest gainer in the S&P 500, popping 12.6% to $49.13 after the cloud-based customer relationship software giant succeeded in impressing Wall Street on both its forecast and second-quarter results Thursday.

Apache (APA - Get Report) was the next biggest gaining stock as shares surged 9% to $85.68. The company said Friday it would sell a 33% stake in its Egypt operation to China's Sinopec for $3.1 billion. Apache said the sale is a first step in forming a global partnership to pursue oil and gas projects.
1 of 2

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
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $118.03 -0.71%
APA $50.35 -1.10%
CRM $80.41 0.02%
FB $105.41 -0.31%
GOOG $748.15 -0.02%


Chart of I:DJI
DOW 17,813.39 +1.20 0.01%
S&P 500 2,088.87 -0.27 -0.01%
NASDAQ 5,116.1430 +13.3350 0.26%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs