And then the bottom fell out as the Dow tanked nearly 700 points, suffering its worst losses in over two years, right?.
Ok maybe "tanked" was a bit strong of a word and the bottom didn't exactly fall out, but there was a shift on Friday as the Dow suffered its sixth worst single-day point decline in its history. But before we got too crazy let's put this into perspective.
It's a nearly 3% dip on a market that has run up an insane amount over the past 18 months and in the grand scheme of things it's a blip on the meter. It's doesn't rank among the worst percentage losses -- not even close. I will say two things -- the markets usually enjoy their largest gains after their biggest losses and amid extreme volatility buying opportunities can present themselves.
As we head into February on uneasy footing it may behoove you to take a look at TheStreet's latest edition of Trading Strategies where we tell you how to play a tumultuous February.
The market sell-off on Friday seemed to overshadow what had been another blowout quarter for much of Big Tech, well, a blowout from everyone except Apple (AAPL - Get Report) . Again, maybe a bit of an over-exaggeration as the Cupertino, Calif., company reported weaker-than-expected iPhone unit sales on Thursday. The company also gave a lower-than-expected revenue forecast for the March quarter.
But despite the bad headline numbers, the company's got a huge cash pile that some think could be used for dividends or buybacks and a dash of M&A. I'm not a huge fan of buybacks, as they effectively liquidate capital that could be used to improve a given business. But when you've got the type of cash that Apple has, it's possible to do buybacks witbout forgoing significant investment in new technologies. Apple closed down 4.3% Friday, down 6% on the week.
On Super Bowl Sunday investors should be rooting for an Eagles' win, at least for the (potential) benefit of their portfolio. Since 1986, the average annual return on the S&P 500 after a Patriots win has been a meager 1.5%, according to data from LPL Financial. In their losses, the Patriots have managed to help send the S&P 500 up about 5.1% through the end of the year. A bizarre phenomenon, but the Patriots have to been to eight Super Bowls since 1996, a pretty decent sample size, though the indicator is hardly definitive, of course.
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Photo of the day: 'Brother Dominic' at the Super Bowl
Super Bowl LII between the New England Patriots and Philadelphia Eagles will be the main attraction for many over this weekend. But others -- maybe some not-so-die-hard football fans -- will acutely tuned in to the commercials that air, from Amazon.com (AMZN - Get Report) , Coca-Cola (KO - Get Report) , Pepsi (PEP - Get Report) and a host of others. Super Bowl ads are actually a long standing tradition of the game. The first notable ads aired during the 1970s. One of the first most popular ads was that by copy machine maker Xerox (XRX - Get Report) . In 1977 the Norwalk, Conn.-based company rolled out its 'Brother Dominic' campaign where a monk, backed up in his scribe duties, travels through time to use a Xerox copy machine to get the work done faster. Too bad humor doesn't translate into long term profits. The 112-year old company is in the process of being acquired by Japan's Fujifilm after precipitous fall from grace and a break up of the company a few years back. Read More
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