Stocks sink on China fears, Dow finishes at five-week low

Stocks finished with steep losses as data showing a contraction in China's manufacturing activity sparked worries that the country's recent slowing momentum is carrying over into the new year.

"This is the first time in many weeks that we've seen this kind of across-the-board volatility," one strategist said, as the VIX rose 7.2% for its fourth consecutive advance.

The data triggered a selloff in riskier emerging market shares and currencies, and helped boost prices of Treasurys and gold; the 10-year Treasury yield dropped 9 bps to 2.779%, while and gold rose 1.9% to $1,262.30.

Netflix surged 16.5% after beating earnings estimates and guiding higher, but the broader market failed to respond despite several better than expected quarterly reports.

Comments (6)
  • sl100
    , contributor
    Comments (112) | Send Message
    Market needs to go down another 20-30% to call in sink. The feds has caused another massive bubble and investors should thank the feds and bail out from stocks now The rich had made it big with the Feds help/inside info as can be seen in the disparity in the wealth. Teach these folks a lesson and sell the paper to them at these levels,


    Also the mkt is no longer about investing but rigged place where people get mugged without knowing. I think the best place is cash and in case of 401k where there nto much choice move to money mkt funds.


    Do not short stocks here because the muggers will get you, The current env is pretty ugly no rev/profit growth but lots of debt issued to buy back stock. Corp debt is now doubled since 2007. Media talks about cash but lot of it held by few companies but broader mkt cash levels are much lower and have piled on debt. Also there a lot of accounting gimmicks companies have been using to cover up.
    23 Jan 2014, 09:48 PM Reply Like
  • omarbradley
    , contributor
    Comments (966) | Send Message
    I've never seen a greater time to be an investor in the USA. EVER. this is not to say "don't sweat the down market" but the move today in UNP should be telling the folks "with actual money" that there is a breadth and depth to this recovery underlying what are some very short sighted if not highly counter-cyclical economic policies being let loose here.

  got hammered today...but i would rate this play a VERY strong buy. the F-35 is in need of some serious "tweeking"...but this plane has a very specific purpose and it is one that i think will be in the highest of demands...probably for the next century.


    "and yes you do have to pay for that." A LOT. but i have argued here and other places that it is there logistics management solutions that could create an entirely new paradigm for the movement of goods.



    these truly are ships...and they thrive on bad weather. and yes "you've got to pay a LOT for those too."
    23 Jan 2014, 11:57 PM Reply Like
  • nooseah
    , contributor
    Comments (744) | Send Message
    Omar, you're a brave guy being bullish. The stock market is a matter of weeks, maybe months away from being smashed to smithereens. Good luck.
    Some of the defence stocks may not be a bad play as the next war is bound to be round the corner what with the economy about to flake out.
    24 Jan 2014, 02:25 AM Reply Like
  • Gosho
    , contributor
    Comments (61) | Send Message
    Just another comment predicting the apocalypse...Damn, hearing that for 2-3 years now, I am loving that ''apocalypse'', is it going to be 40-50 percent down this time?Maybe 90?Just give me a number so I know how sure I have to be in my long positions.Keep on wasting your money on shorting stocks, I guess that's working for you for all these years.


    Sorry for my English!
    24 Jan 2014, 04:14 AM Reply Like
  • nooseah
    , contributor
    Comments (744) | Send Message
    How you liking your longs today, Gosho?
    24 Jan 2014, 03:31 PM Reply Like
  • Gosho
    , contributor
    Comments (61) | Send Message
    That was'll see after a week or two, then you will be begging for 10$ drop to get ur short on a smaller loss.
    Good luck with ur ''apocalypse'' expectations.
    24 Jan 2014, 04:01 PM Reply Like
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