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.

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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


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

The market has been propped up artificially by the stimulus spending and the low interest rates. It is starting to go back to whatever \"normal\" is these days. Smoke and mirrors that the administration has been bragging about. It will still average up, but just not this crazy high it has been on, Somehow the Bush and the GOP will get blamed for the adjustment...just wait for it.

February 03 2014 at 8:35 PM Report abuse +1 rate up rate down Reply
1 reply to Mike's comment

Which stimulus, the three under Bush, or the three under Obama? As for the low rates, and Federal buying it began under Bush, and was carried over by Obama. Thus, both at fault. Or do you suffer from Demential thus you forgot about the $800 stimulus check received by most Americans under Bush.

February 03 2014 at 9:20 PM Report abuse +2 rate up rate down Reply

Blame whomever you want, Bozos- it makes no difference. The point is that the house of cards built on sand sees a hurricane approaching and it ain't good.

February 03 2014 at 7:57 PM Report abuse +2 rate up rate down Reply

The investors on main street knew long ago that the stuff was going to hit the fan ,because it hasn't been nearly as good as the big wheels have lead us to believe .

February 03 2014 at 6:50 PM Report abuse +1 rate up rate down Reply

Hey Music, President Obama is doing a wonderful job cleaning up the mess of former president bush jr. Yes, a republican. Get your head out of the sand.

February 03 2014 at 6:31 PM Report abuse rate up rate down Reply