Will This Be The Largest Decline Since 1987?
The S&P 500’s 16% decline this quarter would be the index’s largest since
a 23% plunge during the fourth quarter of 1987, which included the October crash. Next Monday is the quarter’s final trading day.
As we approach the end of
the third quarter, stocks closed lower for the fifth straight week. The
three major indices all ended lower. The Dow Jones Industrial Average
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and the Standard & Poor’s 500 Index
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lows to end another losing week after Philip Morris
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Wyeth
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lowered ratings on General Electric
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The Nasdaq Composite
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trading just below the session and weekly highs most of the day, battling to
stay above key support around 1200.
The S&P 500 lost 27.59, or 3.2% to
827.36. General Electric, Philip Morris and Wyeth were responsible for 15% of the loss. The Dow declined 295.67, or 3.7%, to 7701.45. The
Nasdaq Composite Index dropped 22.53, or 1.8%, to 1199.08.
For the week, the S&P 500 lost 2.1%, the Dow 3.6% and the Nasdaq 1.8%. The benchmarks’ last weekly gains came Aug. 23.
These declines are showing that investors are concerned that the expected
rebound in corporate earning may not happen.
The sectors that ended positive on the day were
limited to Health. The weaker sectors were Energy, Biotech
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Drug
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Networking, Telecom, Airline
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The economy grew at an annual rate 1.3% in
the spring, a performance that was slightly stronger than previously thought but
which still marked a dramatic slowdown from the beginning of the year.
The Dec. 10-year Treasury
note
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investors anticipated a weak economic recovery will prompt the Federal Reserve
to cut interest rates before year-end.
Cost Plus
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an inverted head and shoulders with increasing volume to hit a 90-day high. CPWM
has a
TradingMarkets.com RS3 rating of 86.
Cooper
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is close to hitting its 52-week high. COO has increasing volume today and holds
a
TradingMarkets.com RS3 rating of 97. Cooper also has an up trending
ADX of
28.
Abbott Labs
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recent high following its rebound and thrust off the 50-day moving average.
ABT is holding a
3-month
relative strength rank of 96 from TradingMarkets.com.
Community Health
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to hit a 90-day high with increasing volume. CYH has a
TradingMarkets.com RS3 rating of 91.
Take-Two Interactive
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hitting a 52-week high with increasing volume. TTWO has a
TradingMarkets.com RS3 rating of 98 and an up trending
ADX of 28.
Hovnanian Enterprises
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rallying stronger in the early goings. HOV has strong volume for this time of
the day. HOV has a
TradingMarkets.com RS3 rating of 81.
Steris Corp.
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resistance with increasing volume to hit a 52-week high. STE has a
TradingMarkets.com RS3 rating of 92.
Amsurg Corp
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breaking down from a head and shoulders pattern. Amsurg is moving higher today
with increasing volume. AMSG has a
TradingMarkets.com RS3 rating of 81.
Next week will be the last relatively quiet week
before earnings season starts back up during the week of Oct 7. Look for reports from Walgreen
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ATI Technologies
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Communications
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Nasdaq Market Breadth
Adv: 1028 UpVol: 40227022
Dec: 2247 DnVol: 86651430
Net: -1219 Net: -46424408
NYSE Market Breadth
Adv: 911 UpVol: 19801072
Dec: 2317 DnVol: 129021930
Net: -1406 Net: -109220858