Stocks Fall On Taper Anxiety

Michael Teague  |

Stocks ended substantially lower Tuesday on the lowest-volume trading day of the year so far, as the Standard & Poor’s 500 slipped back under 17,000 amid further confirmation from the Fed that the great taper is indeed likely to begin next month.

The S&P 500 ended at 1,697.37, down 0.57 percent, while the Dow Jones Industrial Average closed 0.6 percent lower at 15,518.74 points, and the NASDAQ was off 0.74 percent to end at 3,665.77.

Data showing that the US trade deficit has shrunk to its smallest in nearly four years to $34.2 billion, much less than the estimated $44.1 billion was welcome news, but investors were unnerved by comments made by Atlanta Fed Reserve President Dennis Lockhart, who said that the pull-back of the Fed’s stimulus program could take place in September or at any time prior to the end of 2013.

Basic materials stocks dragged on the S&P 500, with losses for Newmont Mining ($NEM), the Mosaic Company ($MOS), and aluminum manufacturer Alcoa ($AA). Services stocks also fell, with Abercrombie & Fitch ($ANF), J.C. Penney Company ($JCP), and Nordstrom ($JWN) ending the day significantly lower.

On the Dow, techs led the way down, with IBM ($IBM) and Hewlett-Packard ($HPQ) off. Shares for IBM were down as a result of Credit Suisse cutting the company’s rating from “neutral” to “underperform.”

Tech shares weighed heavily on the NASDAQ as Facebook ($FB), Groupon ($GRPN), Apple ($AAPL) and Yahoo! ($YHOO) all fell on heavy volume.

Shares for the Washington Post Co. ($WPO) ended the day over 4 percent higher to $593 after Monday’s late announcement that the newspaper would be purchased personally by Amazon.com ($AMZN) CEO Jeff Bezos.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer.

Companies

Symbol Name Price Change % Volume
MOS Mosaic Company (The) 18.63 -0.33 -1.74 4,927,976 Trade
FB Facebook Inc. 194.11 -2.64 -1.34 18,806,020 Trade
AA Alcoa Corporation 20.69 -0.57 -2.68 4,334,076 Trade
JWN Nordstrom Inc. 38.38 -1.31 -3.30 2,774,950 Trade
HPQ HP Inc. 20.35 -0.08 -0.39 8,693,891 Trade
YHOO Yahoo! Inc. n/a n/a n/a 0 Trade
ANF Abercrombie & Fitch Company 16.76 -0.58 -3.34 2,725,556 Trade
GRPN Groupon Inc. 2.61 -0.11 -4.04 8,089,225 Trade
NEM Newmont Goldcorp Corporation 41.29 0.17 0.41 5,543,051 Trade
JCP J.C. Penney Company Inc. 1.11 -0.02 -1.77 4,981,349 Trade
FLKI Falken Industries Ltd 0.00 0.00 0.00 5
IBM International Business Machines Corporation 134.21 -1.11 -0.82 2,534,970 Trade
AAPL Apple Inc. 275.15 3.69 1.36 33,432,806 Trade
AMZN Amazon.com Inc. 1,760.94 0.61 0.03 2,747,909 Trade

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Watchlist

Symbol Last Price Change % Change
AAPL

     
AMZN

     
HD

     
JPM

     
IBM

     
BA

     
WMT

     
DIS

     
GOOG

     
XOM

     
BRK.A

     
FB

     
JNJ

     
WFC

     
T

     
NFLX

     
TSLA

     
V

     
UNH

     
PG

     

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