THE MARKET IN REVIEW by Angie Hembury
The Major Indices had a rough start this week as they fell Monday on increasing emerging market concerns and worries over the upcoming Fed decision on the bond buying program. The Dow extended its losing streak to five consecutive trading sessions, losing 0.3%, while the S&P 500 and Nasdaq also tumbled, by 0.5% and 1.1%, respectively.
Earnings saved the day Tuesday with D.R. Horton (DHI), Ford (F) and Pfizer (PFE) reporting better-than-expected fourth quarter results. The Dow recovered 90.68 points, or 0.6%, the S&P 500 climbed 10.94 points, or 0.6%, and the Nasdaq picked up 14.35 points, or 0.4%.
The Fed opted to continue to scale back on its bond purchases by another $10 billion Wednesday, and while it was an expected move, it sent the already hurting Indexes into a downward spiral. All three of the Major Indexes took it on the chin with the Dow falling 1.2%, the Nasdaq dropping 1.1% and the S&P 500 dipping by 1.0%.
Stronger-than-anticipated earnings from Facebook (FB) and Visa (V) combined with a 3.2% increase in fourth quarter GDP to send stocks soaring Thursday. The Dow added 109.82 points, or 0.7%, the S&P 500 added 19.99 points, or 1.1%, and the Nasdaq, Thursday's biggest gainer, rose 71.69 points, or 1.8%.
The downside momentum returned Friday as ongoing turmoil in emerging markets prompted another sell-off on Wall Street. The Dow closed 0.94% lower, the S&P 500 dropped 0.65% and the Nasdaq slipped 0.47%.
All three Major Indicies ended the week lower making January the worst month seen since May 2012. And that's The Market In Review.