After Market: Stocks Got Sacked As Investor Confidence Sagged

What did the stock market Monday have in common with the Denver Broncos Sunday night? They both got clobbered. February roared in like a bear, extending last month's big sell-off. The decline was steep and broad-based, with the number of losing issues swamping gainers by a huge margin.

A weaker-than-expected report on manufacturing dinged investor confidence about the economy. And once again, the selling started overseas. Japan's Nikkei index officially entered correction territory, down more than 10 percent from its recent peak.

The Dow Jones industrial average (^DJI) tumbled another 326 points. They're now down more than one-thousand points since we turned the calendar to 2014. The the Standard & Poor's 500 index (^GPSC) lost 40, and the Nasdaq composite (^IXIC) tumbled 107 points to its lowest level since June of 2012.

The steep slide could wreak havoc on the overall economy. It's the opposite of the wealth effect, when people spend more because their brokerage statements are flush. Add in the higher cost of heating our homes this winter, and industries from retail to housing to travel and leisure all took big hits.

Telecom and industrial stocks topped the list of blue chip losers. AT&T (T) dropped 4 percent, while Verizon (VZ), General Electric (GE), United Technologies (UTX) and 3M (MMM) each lost more than 3 percent.

Ford (F) and GM (GM) each lost more than 2 percent after posting disappointing January sales numbers.

And take a look at some of the leaders in the travel and leisure sectors. Among the airlines, United (UAL) and Delta (DAL) both fell 4 percent.

Hotel companies Marriott (MAR) and Starwood (HOT) both down more than 3 percent.

And online travel companies Priceline (PCLN), Expedia (EXPE) and TripAdviser (TRIP) all slid.

Homebuilders also crumbled. Beazer (BZH) lost 4 percent. Pulte (PHM), Hovnanian (HOV) and others lost about 3 percent. The online real estate company Zillow (Z) lost 5-1/2 percent.

Among widely followed internet stocks, Amazon (AMZN) tumbled 3.5 percent and Google (GOOG) lost 4 percent.

What to Watch Tuesday:
  • The Commerce Department releases factory orders for December at 10 a.m. Eastern time.
These major companies are due to report quarterly financial statements:
  • Aflac (AFL)
  • Ameriprise Financial (AMP)
  • Archer Daniels Midland (ADM)
  • BP (BP)
  • Clorox (CLX)
  • Gannett (GCI)
  • Genworth Financial (GNW)
  • International Paper (IP)
  • UBS (UBS)
-Produced by Drew Trachtenberg.

Learn about investing from the comfort of your own home.

Portfolio Basics

Take the first steps to building your portfolio.

View Course »

Investment Strategies

Learn the strategies you need to build a winning portfolio

View Course »

Add a Comment

*0 / 3000 Character Maximum


Filter by:

Asian Markets getting hammered even Jim Pumper Crammer can't stop it now.

Bankers won't use their own money to buy Clown suits and there is no such thing as investor's or investing anymore - it's a ll a Wall Street craps game.

February 04 2014 at 12:31 AM Report abuse +1 rate up rate down Reply

Everybody knew that the King had no clothes on ( the shorts ) have been saying this whole house of cards was built on Banks feasting on Fed $$$$ then converting the Fed $$$$ into Dow Securities , Now the Fed ... is taking its ball back home and grows tired of the game . Banks actually might have to lend money ... can you believe that .....Banks once again actually lending $$$$ .......... WOW ! Maybe the Fed wants the Banks to re-ignite the Real Estate Market .... and get out of these High Risk Securities ........ we will soon find out ! In the meantime ...keep ALL of your powder dry ..... and dont get caught in sucker rallies ...that are planned to calm the market FEAR !

February 03 2014 at 11:39 PM Report abuse rate up rate down Reply
1 reply to jwmgrand's comment

Yellen is Bernanke in drag…… QE TO INFINITUM !!!!! AND BEYOND !!!!!!

February 03 2014 at 11:44 PM Report abuse rate up rate down Reply

I smell bad things coming... So who will obummer blame..We all know it will never be his fault ..8)

February 03 2014 at 11:39 PM Report abuse rate up rate down Reply

Going into another recession we missed the recovery ! or at least I did.

trillions more of our money going to the 1%

Coming real soon " Feel the pain " ! remind your Senators and Reps i the coming elections

February 03 2014 at 10:18 PM Report abuse +1 rate up rate down Reply
1 reply to SPQR's comment

Let's examine your view m0r0n. You haven't even a clue who the 1% are. the vast majority get up every morning and go to work just like everyone else attempting to make a living. They just do it more efficiently than nummnuts like you.
Both wealth and income are super-conc­entrated in this top group, with almost exponential increase in both income and wealth between the top .5% and the top.1%. 78 million Americans who were 50 or older as of 2001 controlled 67% of the country’s wealth, or $28 trillion, as they should as 85% of the people that are currently in the top 10% of the socio-economic spectrum were not in the top 10% 10 years ago. Most people start their adult life with essentially no net worth, and then see that net worth increase steadily over their lifetime. In any given 10-year period, there is tremendous movement up and down the income spectrum, with nearly 40% of people moving up from bottom 20% to next to bottom 20% to middle 20%, etc.. The desperately poor elderly conjured up in political and media rhetoric are, in the world of reality, the wealthiest segment of the American population demographic . In fact those around retirement age – 55-75 – have seen the biggest increases in incomes over the past 20 years, which is why they make up the largest majority of the top 1%. These people have worked their way up, to the point where they have a substantial income in their later years, are not rich. In most cases, they never earned high incomes in their younger years and they will not be earning high incomes when they retire. RETIRE something that you'll never do, because you're ignorant ~!

February 03 2014 at 10:37 PM Report abuse rate up rate down Reply

Read the Constitution - CONGRESS controls the nation\'s purse strings, the HOUSE is responsible for INITIATING spending bills, the REPUBLICANS control the House, and the BAGGER BROTHERHOOD controls the GOP...

...Besides trying to control women\'s vaginas, whatever happened to that 2010 \"LASER-FOCUS \" on CREATING JOBS, which promotes a TRUE, ECONOMIC GROWTH?


LMAO You Obamites claim that Obama created millions of jobs. And yes Pelosi added 5 trillion to the debt you simpleton with her reckless spending. And then there\'s the degenerate Democrats who think women only care about contraceptives and what goes on between their legs. Only a bottom of the barrel uneducated maggot like yourself uses the term bagger.

February 03 2014 at 10:00 PM Report abuse -3 rate up rate down Reply

Yo racquet, short term memory loss, otherwise how did you forget, Bush owns the Record for Executive Orders, with Obama still far behind.

You\'re full of it Sammie. Bush does not hold that record SIMP. Your Bush derangement syndrome is out of control and you lost your senses.

February 03 2014 at 9:54 PM Report abuse -4 rate up rate down Reply

Guess Bush was a lying Socialist, because the economy collapsed under his watch. Bet you voted for the loser twice, and worst yet, I bet you earn no where what you should to vote GOP. So thanks for voting GOP, and enriching my retirement portfolio.


Another Obamite who\'s stuck in the Bush suffering from Bush derangement syndrome

February 03 2014 at 9:49 PM Report abuse -4 rate up rate down Reply


February 03 2014 at 9:39 PM Report abuse +1 rate up rate down Reply

I am not happy with change over! I like to see all of the investment portfolios on one page with the aggregate totals with he ability to check on any one to view the individually . I think this site is or me

February 03 2014 at 9:37 PM Report abuse rate up rate down Reply

Bush's fault again!!

February 03 2014 at 9:18 PM Report abuse -1 rate up rate down Reply