After Market: That's 3 Down Days in a Row. Is the Bull Tuckered Out?


As the Dow closed Tuesday on its first three-day losing streak since late September, investors are wondering: Has the bull market peaked or is it just taking a breather after setting a series of record highs?

The Dow Jones industrial average (^DJI) tumbled 94 points Tuesday, but closed well off session lows. The Standard & Poor's 500 index (^GPSC) lost 6 points, and the Nasdaq composite index (^IXIC) fell 8.

WALL STREET
AP/David Karp
Among the blue chips, DuPont (DD) was the big loser, dropping 2 percent. Disney (DIS), Pfizer (PFE) and Visa (V) all lost more than 1 percent. And 3M (MMM) lost another percent after tumbling 5 percent on Monday.

Ford (F) lost 3 percent and GM (GM) fell 2.5 percent despite strong November sales figures. Industry-wide, sales rose to an annual rate of 16.4 million, their highest level since early 2007.

But Tesla (TSLA) rallied 16 percent after Morgan Stanley called it a "top pick." Tesla shares have soared more than 300 percent over the past year.

Biotech stocks, which have had big gains for the year, had a rough day.

Regeneron (REGN) lost 3 percent. Gilead (GILD), Biogen (BIIB) and Amgen (AMGN) all lost ground. And Lexicon (LXRX) slid 5 percent on disappointing test results for its drug to treat irritable bowel syndrome.

And the day's big loser was Krispy Kreme (KKD). Shares of the doughnut maker tumbled 20 percent after the company issued a disappointing outlook.

Yum Brands (YUM) -- another food company not on the American Heart Association recommended list -- fell nearly 3 percent. Its sales in China last month were little changed. China has become the largest market for the company, which owns KFC, Pizza Hut and Taco Bell. Yum holds its annual shareholder meeting on Wednesday.

There weren't many winners, but we can point to a couple of good ones.

Apple (AAPL) gained nearly 3 percent. UBS raised its rating to 'buy' from 'neutral' and set a 650 dollar price target for the stock. It moved above 560 a share on Tuesday.

And Abercrombie & Fitch (F) gained 6 percent. An activist investor is pushing the company to dump its controversial CEO.

What to Watch Wednesday:
  • The Commerce Department releases international trade data for October at 8:30 a.m. Eastern time.
  • At 10 a.m., the Commerce Department releases new home sales for September and October, and the Institute for Supply Management releases its service sector index for November.
  • The Federal Reserve releases the Beige Book, its anecdotal snapshot of business conditions around the nation, covering October through mid-November at 2 p.m.
These major companies are due to report quarterly corporate earnings: -Produced by Drew Trachtenberg.

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RouteUS66Busload

Warren Buffett got a kick out of this. I bet it keeps him alive much longer. "No fear" cures or keeps cancer away.

December 06 2013 at 1:42 AM Report abuse rate up rate down Reply
aftonmoon

When QE goes the market goes--down, way down. QE is the narcotic of the markets and they will be in the free fall of withdrawal. You cannot borrow your way to prosperity no matter how low the interest rate is

December 04 2013 at 5:33 AM Report abuse +1 rate up rate down Reply
Nestor

Why do we always have to endure these absolutely stupid comments about how the market is going to crash....ooooh it's up SO high? That's a big pile of bunk. On a historical basis of the past 70 years it's about right on the same track of a 10% growth rate over time. Yes, folks, the market goes up AND down. Those that bail on declines create the opportunity and gain for those that stay the course. If you can't stay in the market at least 5-10 years, you deserve to lose money. The only way to get the market gains is to stay IN the market no matter what happens.,

December 04 2013 at 1:00 AM Report abuse rate up rate down Reply
paddleman1928

the FED will just have to pump more money into the market to keep it going(for a while longer).

December 03 2013 at 10:21 PM Report abuse rate up rate down Reply
betty_brock

This administration is full of bull.

December 03 2013 at 10:18 PM Report abuse +2 rate up rate down Reply
betty_brock

Liberals are full of bull.

December 03 2013 at 10:17 PM Report abuse +3 rate up rate down Reply
Elaine

Non commitment to supporting YOUR equal rights is the result of this administration. Where was your voice? Who did you vote for? More importantly, do you REALLY believe that your vote matters when the DC Folks are in control? So open wide and take your medicine, you asked for it. How long will you allow this illness to continue? Hate Me Later - Act Now!Type your comment here

December 03 2013 at 9:45 PM Report abuse -2 rate up rate down Reply
cvanac8550

Tesla talk about bubbles........

December 03 2013 at 9:20 PM Report abuse rate up rate down Reply
RouteUS66Busload

Bullish-N-Dreamer?

December 03 2013 at 7:44 PM Report abuse rate up rate down Reply
juststeve35

It's not a bull market!

It is the natural reaction to the overwhelming economic successes of the Obama Administration!!

Don't believe me?

Well then, just ask one of the 26% of America who Strongly Support his economic performance.

December 03 2013 at 7:02 PM Report abuse -6 rate up rate down Reply
2 replies to juststeve35's comment
ectullis

What successes

December 03 2013 at 7:45 PM Report abuse +2 rate up rate down Reply
betty_brock

juststeve is full of bull.

December 03 2013 at 10:17 PM Report abuse +2 rate up rate down Reply
1 reply to betty_brock's comment
paddleman1928

I think steve is using sarcasm-by saying to ask the 26% supporting Obama-he is saying 74% do NOT support or believe Obama.

December 03 2013 at 10:23 PM Report abuse rate up rate down