Close Update: Stocks Take Another Bruising - Nasdaq Closes Below 4,000

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Stocks took another beating Friday after disappointing earnings from JP Morgan ( JPM ) and another bloodbath in biotechs triggered a sell-off across most sectors with financial and technology stocks hit especially hard. As stocks continued to retreat, the government bond market rallied as the yield on the 10-year note fell to 2.62%, another 3 basis points richer.

Besides Wall Street's failure to encourage bargain-hunting after Thursday's carnage, Friday's action was a technicians nightmare, causing investors to entertain thoughts of a correction in the equity market. The S&P 500 and Dow Industrials both breached their 50-day moving averages, and the Nasdaq flirted with key support at 4,000, dropping to a 9-week low of 3,991.

The day's economic data was a mixed bag as producer prices rose by a much greater than expected 0.5% in March, beating estimates for a benign 0.1% gain. Excluding food and fuel, the core index also beat expectations for a 0.2% gain by increasing 0.6% last month.

An improvement in consumer sentiment set off a brief rebound and a limited probe into positive territory this morning, but the move was quickly extinguished by profit-taking. Reuters/Univ of Michigan reported an encouraging increase in their preliminary consumer sentiment index to 82.6 in April from a final read of 80.0 last month, beating estimates for a more modest increase to 81.0.

Here's where the markets stood at the close:

US MARKETS

Dow Jones Industrial Index down 143.47 (-0.89%) to 16,026.75

S&P 500 down 17.39 (-0.95%) to 1,815.69

Nasdaq Composite Index down 54.37 (-1.34%) to 3,999.73

GLOBAL SENTIMENT

FTSE 100 was down 1.21%

Nikkei 225 was down 2.38%

Hang Seng Index was down 0.79%

Shanghai China Composite Index was down 0.18%

UPSIDE MOVERS

(+) ZOES (+64.80%) Stock soars after $15 per share IPO

(+) ZIGO (+32.36%) To be bought by Ametek ( AME ) for $19.25 per share

(+) EQU, EQU.TO (+7.09%) Shareholder Montclair Energy presented a plan for a leveraged share buyback

DOWNSIDE MOVERS

(-) DWCH (-29.16%) Issued Q2 earnings guidance that fell below analyst expectations

(-) VJET (-18.60%) Public offering of 3 mln ADS at $15.00 each is a 19% discount to Thursday's closing price

(-) JCP (-9.62%) Failure to pierce $9 resistance leads to heavy selling pressure amid weakness in retail stocks



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

Copyright (C) 2014 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.


This article appears in: Investing , Commodities

Referenced Stocks: JPM , AME

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