Stocks lost more ground Friday, as poor quarterly results from Qualcomm and more losses from loans at Wachovia weighed heavily on the market. The Dow Jones Industrial Average dropped 223.55 points (-1.69%), Standard & Poor's 500 index traded 21.07 points lower (-1.43%), and the Nasdaq dropped 68.06 points (-2.52%). Volume on the NYSE was high at 1.83 billion shares, and decliners outnumbered advancers by a ratio of about 3:1.
Qualcomm (-4.2%) was able to top estimates for the past quarter, but its outlook was softer than expected (full story). Wachovia (+0.9%) announced it expects to record a $1.1 billion writedown because of the subprime crisis (full story). Fannie Mae (-1.6%) announced third-quarter results that were also hurt by the credit market weakness; the company lost $1.4 billion. Also pressuring stocks downward was the University of Michigan sentiment index, which fell to 75.0. Analysts were expecting a much higher reading, as it was the lowest figure in two years (full story). A lower than expected trade deficit in the morning did little to change the downward momentum coming into the session (full story). The U.S. 10-Year jumped 15/32 in price, now yielding 4.22%.
All sectors finished down Friday, led by tech (-2.7%), energy (-2.2%), and financials (-0.9%). Crude climbed $0.97 to $96.43/barrel. Merck (+2.1%) was a bright spot, after it announced it would settle a significant portion of the Vioxx lawsuits for $4.85 billion (full story).
No economic data is scheduled to be released Monday, as it is Veterans Day. The week was a trying one for investors, as we seem to be at the same place we were last August.
Commentary: Thursday's Nasdaq/S&P 500 Spread Widest Since '03 • Emerging Market Trends: What's Next?
Stocks to watch: QCOMM, WB, FNM, MRK