After Market: Early Earnings Season Warnings Send Stocks Stumbling

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Stocks tumbled Monday, and investors showed signs they were starting to get a little bit nervous about 2014. There are a number of factors that have propelled this year's early string of losses. Earnings season is starting with lots of companies warning their results will not meet expectations. Also causing some concern Monday were comments from Atlanta Fed President Dennis Lockhart in support of Federal Reserve's plan to continue cutting back on its bond-buying stimulus program.

And then there's investor sentiment. The growing feeling is that last year's rally was, well, so last year.
Wall Street
AP/Richard Drew
The Dow Jones industrial average (^DJI) slid 179 points, a fourth straight loss. The Standard & Poor's 500 index (^GPSC) fell 23, and the Nasdaq composite index (^IXIC) tumbled 61 points.

Among the Dow's worst performers: Nike (NKE), Exxon-Mobil (XOM), Disney (DIS) and Microsoft (DIS) all lost 2 percent or more. The only big winner was Merck (MRK), which rallied 6 percent after a preliminary FDA review strongly endorsed the company's drug to prevent blood clots.

Retail stocks continued to slide. Lululemon (LULU) tumbled 16.5 percent after the maker of yoga gear cut its fourth-quarter outlook. The stock has been on a steady downward path over the past three months, losing about a third of its value.

Two other retailers of women's apparel were also battered. Express (EXPR) reported a drop in store traffic. It fell 4.5 percent. And Ascena (ASNA), which owns Dress Barn, Lane Bryant and other chains, fell 7 percent.

Target (TGT) lost nearly 2 percent. House Democrats want the Financial Services Committee to investigate the hacking of credit card and other personal data of as many as 110 million Americans. J.C. Penney (JCP) lost 8 percent and Kohl's (KSS) fell 6 percent.

Elsewhere, last week's big winner, Intercept (ICPT) Pharmaceuticals gave back 18 percent on word its liver treatment raised cholesterol levels in some trial patients.

But cheers to shareholders of the liquor company Beam (BEAM). It agreed to be acquired, sending the stock up 24 percent. Rival Brown-Forman (BF-A), maker of Jack Daniels and Southern Comfort, among other spirits, rose 4 percent.

Netflix (NFLX) gained 1.5 percent on its success at last night's Golden Globes.

And Alnylam Pharma (ALNY) soared 41 percent after expanding its collaboration with Genzyme, a subsidiary of Sanofi (SNY).

What to Watch Tuesday:
  • The Commerce Department releases retail sales data for December at 8:30 a.m. Eastern time and business inventories for November at 10 a.m.
These major companies are due to report quarterly financial results before U.S. markets open:
  • JPMorgan Chase (JPM)
  • Wells Fargo (WFC)
-Produced by Drew Trachtenberg.

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jwmgrand

This joyride to 16k was Fed Fueled via banks taking loaned Fed money and diverting the Fed $$$ back into Securties ..... thus creating a unnatural rise in the price of most Securties ... now the time has come for the securties to show us what they REALLY got ... and as we all now can see ...most of them are just a product of smoke and mirrors ... they wont make the earnings #s ... and that transitions into ......... a MAJOR correction on the way ... we could be down 1700 points by Noon any day now !

January 13 2014 at 11:41 PM Report abuse -2 rate up rate down Reply
bobbsafe

I think it would do America good for the stock market NOT too go up 30% each year. Since when is the Federal Reserve supposed to prop up rich people on Wall Steet whose only job is to get dressed each day - while main street (working) Americans who dont partake in the gleeful frenzy, suffer with higher prices? TARP was needed but this QE infinity is being controled by the rich. Let Wall Street and the market go back to what worked before - underlying economic conditions.

January 13 2014 at 10:48 PM Report abuse -2 rate up rate down Reply
analyst0042

People, let us imagine one of those tall mountainous pillars in the desert of Utah. On top of this pillar stands one person on the very edge and on the other side of this pillar stands another person on the very edge. Both people know the pillar is crumbling beneath them. Each yells epithets at the other for causing the pillar to crumble. Yet not one of them has decided to compromise and get together to save their combined lives or else they will both die in a monumental collapse of I am right and you are wrong wrath. That is what is happening to this country...and the public by egging on each others favorite side not to give an inch will have that pillar collapse on their heads. And the sun will continue to shine and the bird will continue to chirp and the heavens will wait for life to begin anew...the dinosaurs became extinct....now it is perhaps our time to join the dust bin of history...another failed species..

January 13 2014 at 10:17 PM Report abuse rate up rate down Reply
weilunion

The Casino economy will fail once again. The stock market, Dow Jones or 'misery index' for most of us who do not own stocks or bonds is an inflated fraud. Manipulated sbys the one percent. Why can't Americans learn?

"The world pays too much attention to the effects while it ignores causes and this is as true...as it is of any of the evils that afflict society.”
>
> - Frederick Douglass

January 13 2014 at 9:49 PM Report abuse -1 rate up rate down Reply
k4jlp

The players are spooked, short now on Commodities, FTC/DOJ investigation pending...called my broker, he is already in the Caymans with the Wolf of Wall Street and four hookers........................

January 13 2014 at 5:39 PM Report abuse +2 rate up rate down Reply
pmjohnson1717

2014 will be a disaster.

January 13 2014 at 5:19 PM Report abuse +1 rate up rate down Reply
shorthosep

Does this come to any as a surprise? Big business has spent the last 30 years depressing workers wages, now they're finally waking up to the fact that their plan worked so well that workers no longer have the money for their WANTS their too busy working for their NEEDS. Who has 3-4 hundred dollars to take a family to Disney World when 50% of American workers make $30,000 a year OR LESS. Who has $300 for Nike's when you have to work a whole week to pay for them and you still have to pay your bills Most people aren't thriving their surviving.Most disappointing is who uses a SMALL BUSINESS when it costs 30% less to have it done by a big business.

January 13 2014 at 5:19 PM Report abuse +1 rate up rate down Reply