In other news on Friday, the U.S. economy grew at an annual rate of 3.2% in the fourth quarter. This was higher than the third quarter, but still missed analysts' expectations of a 3.5% annual GDP. Personal consumption, on the other hand, was up 4.4%, which is the highest reading in 4 years. The Reuters/University of Michgan's consumer sentiment index rose from an initial reading of 72.7 and a forecast of 73.2 to 74.2 in January.
Nasdaq Composite (Figure 3)
The Dow Jones Industrial Average ($DJI) had a loss of 166.14 points, or 1.39%, and closed at 11,823.70 on Friday. Despite the extreme selloff in the market, two stocks in the Dow still managed to post a gain... albeit barely. They were DuPont (DD) (+0.04%) and Procter & Gamble (PG) (+0.03%). The biggest losers were Microsoft (MSFT) (-3.88%), Home Depot (HD) (+3.37%), Hewlett-Packard (HPQ) (-2.63%), and Cisco (CSCO) (-2.38%). The Dow ended the week lower by 0.41%. It is up 2.13% year-to-date, but down 16.53% since October 2007 highs.
The S&P 500 ($SPX) fell 23.20 points or 1.79%, and closed at 1,276.34. Only thirty stocks in the S&P 500 managed to post a gain. None of the S&P 500's industry groups managed to post a gain. The top declining sectors were consumer discretionary (-3.2%), technology (-2.3%), telecoms (-2.2%), and financials (-1.8%). The top individual percentage performers were Massey Energy Company (MEE) (+5.22%), Dover Corp. (DOV) (+4.49%), Denbury Res. Inc. (DNR) (+3.60%), and Netflix (NFLX) (+3.37%). Monster Worldwide (MWW) was by far the biggest loser in the S&P 500. It fell 25.43%. Ford Motor (F) (-13.41%) was the next largest decliner. Compuware (CPWR) (-9.42%), Sandisk (SNDK) (-8.81%), and Amazon.com (AMZN) (-7.22%) were other major losers. The S&P 500 ended the week hloser by 0.55%. It is up 1.49% year-to-date, but down 18.45% since October 2007 highs.
The Nasdaq Composite ($COMPX) ended the session lower by 68.39 points, or 2.48%, on Friday and it closed at 2,686.89. Netflix (NFLX) (+3.37%) and Verisign Inc. (VRSN) (+2.58%) were the only two stocks in the Nasdaq-100 to post a gain. Sandisk (SNDK) (-8.81%), Amazon.com (AMZN) (-7.22%), Celgene Corp. (CELG) (-6.69%), and Ctrip.com (CTRP) (-5.90%) were the top percentage decliners in the Nasdaq-100. The Nasdaq Composite ended the week lower by 0.10%. It is up1.28% year-to-date, but still 4.17% off October 2007 highs.
Unless otherwise stated, the index action described in this article relates to the E-mini futures contracts for the respective indices. Actual index action may differ slightly in terms of pattern formation, although the market bias will remain the same.
Toni Hansen is president and co-founder of the Bastiat Group Inc., DBA Trading From Main Street. Toni is one of the most respected technical analysts and traders in the industry. She has been trading and educating new traders, money managers, professional market analysts and traders throughout the boom and bust of the last decade. She has worked in conjunction with some of the world's top financial exchanges. Learn more about Toni Hansen and the educational services she provides through her website at http://www.tonihansen.com.