This Day On The Street
Continue to site right-arrow
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 Tremble as Investors Fear a Correction Coming

Stocks in this article: DJI ^GSPC ^IXIC

NEW YORK ( The Street) -- Major U.S. markets tumbled Monday as investors remained jittery from last week's weaker-than-expected jobs report, and the prospect that stocks are headed for a correction. Analysts said Tuesday's retail sales report could calm jitters that have been apparent since the onset of the new year.

  • The S&P 500 slumped 1.3% to close at 1,819.20, while the Dow Jones Industrial Average dropped 1.1% to 16,257.94. The Nasdaq tumbled 1.5% to 4,113.30.
  • "The jobs report that came out was a little disappointing; a little surprise," Brad Sorensen, director of market and sector analysis at Charles Schwab, said in a phone interview. "As [the market] started to drift a little lower there was no conviction to buy. I think the market will be watching for the retail sales number tomorrow."

  • The December Treasury budget statement showed a surplus of $53.2 billion. Atlanta Fed Bank President Dennis Lockhart spoke Monday, saying that the Federal Reserve scaling back its economic stimulus program will continue so long as the economy continues to improve.
  • Fourth-quarter earnings reports in focus this week include banks such as JPMorgan Chase (JPM)and Wells Fargo (WFC) on Tuesday, Bank of America (BAC) on Wednesday, Goldman Sachs (GS) and Citigroup (C) on Thursday, and Morgan Stanley (MS) on Friday.
  • Beam  (BEAM) was the top performer in the S&P, surging 24.6% to $83.42 after Suntory Holdings said it will buy Beam for $13.6 billion in cash. Computer-networking equipment maker Juniper (JNPR) was the second biggest gainer, rising 7.6% to $25.32 after being targeted by activist hedge fund Elliott Management Corp. 

  • Lululemon Athletica (LULU) plunged 16.6% to $49.70 after slashing its current-quarter sales and earnings outlook. Wendy's (WEN) jumped 6.4% to $8.98 after reporting upbeat 2014 guidance and preliminary fourth-quarter earnings driven by same-store sales growth. The company also unveiled a $275 million share buyback program. 

  • Germany's DAX rose 0.39% while the FTSE was 0.25% higher. The Nikkei closed 0.20% higher while the benchmark Shanghai Composite index shed 0.19% to a five-month low of 2,009.56 after plans by China's securities regulator to tighten its supervision of initial public offerings did little to ease liquidity concerns.

-- By Jane Searle and Joe Deaux in New York 

Follow me @itsjanesearle

Select the service that is right for you!

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!


DOW 18,030.21 +6.04 0.03%
S&P 500 2,081.88 -0.29 -0.01%
NASDAQ 4,773.4720 +8.0480 0.17%

Brokerage Partners

Rates from

  • 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