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 Drop Amid Fears of China Slump, Fed Tapering

Stocks in this article: DJI ^GSPC ^IXIC

NEW YORK ( TheStreet) -- U.S. stocks dropped Monday as December homes sales fell and weakness in emerging markets pointed to lower demand for U.S. exports. Markets continued their decline for the month as investors braced for the possibility the Federal Reserve will announce a further tapering of its bond-buying stimulus program at the conclusion of a two-day meeting that ends Jan. 29.

  • The S&P 500 lost 0.4% to 1,783.92 while the Dow Jones Industrial Average was little changed at 15,872.97. The Nasdaq was tumbled 0.9% to 4,090.03.
  • A sell-off in emerging market currencies has triggered fears of more volatility as stocks in the developing world are off to their worst start for a year since 2009.
  • December new home sales fell for a second consecutive month (by 7%) though overall, sales for 2013 were still at their highest level in five years.
  • The Federal Open Market Committee's policy meeting announcement takes place at 2 p.m. EST on Wednesday. "Despite emerging concerns about emerging markets and a weak December payroll report, we look for the Fed to continue the tapering process announced at the December meeting, reducing purchases by another $10 billion," Drew Matus, deputy U.S. chief economist at UBS Securities in Stamford, Conn., said in a note.
  • Caterpillar was up 3.93% after announcing stronger than expected 2014 outlook and fourth-quarter results, and a new $10 billion stock repurchase program. IPhone and iPad maker Apple  (AAPL) is expected by Wall Street to report fiscal first-quarter earnings after Monday's closing bell of $14.07 a share on revenue of $57.46 billion.
  • Texas factory activity increased for the ninth month in a row in January, according to the Federal Reserve Bank of Dallas' Texas Manufacturing Outlook Survey. Texas produces more than 11% of total manufactured goods in the U.S.
  • Major global markets were in the red. Germany's DAX was falling 0.46% while the UK FTSE was off 1.70%. The Hang Seng closed down 2.11% while the Nikkei shed 2.51%.

-- By Jane Searle in New York.

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 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 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