Seeking Alpha

Stocks slide again as emerging markets keep investors jittery

  • Stocks tumbled, then pared losses but again fell sharply in the final hour, sending the Dow and S&P 500 to their steepest monthly declines since May.
  • Stocks attempted to erase losses in mid-afternoon, with the Nasdaq briefly turning positive and the S&P 500 nearing unchanged, but the rebound ran out of steam.
  • Investor tension has been fueled by whipsaw trading in emerging markets with concern about the impact of the Fed's move to taper its monetary stimulus.
  • Earnings news sparked volatile trading in individual stocks; Amazon and Mattel each dropped more than 10% after their bottom lines fell short of forecasts.
  • Home builders remained hot, backed by an improved economy and the recent drop in rates.
  • Early selling again coincided with yen strength, with the dollar/yen pair falling as low as 102 before staging a modest recovery; at that point, stocks also began heading higher.
  • Treasurys prices jumped, with the yield on the 10-year note dropping 4.5 bps to 2.649%, its lowest since early November; the benchmark yield closed the week 7 bps lower and 36 bps lower for the month.
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