Money Minute: Do Stocks Need a Reboot? Natural Gas Prices Heat Up


The market is coming off of its worst week in a year and a half. A lot of the blame was heaped on overseas markets, especially China and emerging markets such as Turkey and Argentina.

But some of it may be just letting a little air out of the balloon after such a long rally. In fact, this bull market is 5 years old and has stretched on longer than most. There hasn't been a 10 percent correction in years, and many market pros think it's healthy for the market to reset. So, we're likely to see more volatility this week.

The Dow Jones industrial average (^DJI) tumbled 579 points last week. That's a drop of 3.5 percent. The Standard & Poor's 500 index (^GPSC) slid 2.6 percent and the Nasdaq composite (^IXIC) fell 1.7 percent.

The key earnings report today comes after the closing bell, when Apple (AAPL) reports its quarterly results.
In addition to its earnings, analysts will be looking at how many iPhones and iPads it sold during the holidays. Meanwhile, the company is under increasing pressure from the activist investor Carl Icahn, who wants Apple to dramatically increase the amount of cash used for stock buybacks. Apple's shareholders have had a wild ride. The stock rallied and briefly topped $700 a share in the summer of 2012, before diving back below $400. It closed Friday at $546 a share.

With the extreme cold weather continuing for many of us, natural gas prices are at their highest level in 4 years. That's because demand is certain to increase. Natural gas is used to heat about half of the homes in the U.S.

Sometimes it pays to have a big mouth. Seattle Seahawks player Richard Sherman may parlay his 15-second rant following last week's league championship game into a big pay day. His agent tells CNNMoney that the Stanford grad could make about $5 million in endorsements because of his newfound fame. That's nearly 10 times his NFL salary this year.

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The financial system has abused our trust because there are no regulators that aren't in bed with Wall Street. Wall Street has proven it can't regulate itself as it collateralizes derivatives with collateralized derivatives in a Bernie Madoff ponzi scheme and when the Fed shuts off the fiat currency, feeding the system, the weakest links will fail (AIG) and the whole system will fall like a house of cards. The emerging markets are showing sines of hot money infection as the Fed tightens up.

January 27 2014 at 3:42 PM Report abuse rate up rate down Reply

shut down the theives....bonuses during the bailout???

January 27 2014 at 12:40 PM Report abuse -1 rate up rate down Reply

well maybe people are waking up and refusing to buy cheap Chinese crap...who knows. Where will the billionaires put their (our) money next ? back to gold ? realestate ? commodities, gambling

January 27 2014 at 10:30 AM Report abuse +2 rate up rate down Reply

Great! now I can give the rest of my money to the gas company or freeze to death ! Hmm I wonder if I will starve first or freeze! Hey here is a novel idea train our HS kids to builfd refrigators, radios, tvs, lawnmowers, tools of all kinds, teach farming, cars, make clothes, raise chickens and then we might have some jobs for them. or even me ! Of course I am too old so I will just sit here and dream of what I could have done

January 27 2014 at 10:25 AM Report abuse +2 rate up rate down Reply
1 reply to SPQR's comment

If we don't hurry and do this training, there won't be anyone who still remembers how to do these things. Our schools are teaching everyone to go to college and have white collar jobs. We'll have all "chiefs" and no "Indians", so we have to leave our borders open to allow more laborers into do what the whjite collars won't do.

January 27 2014 at 12:48 PM Report abuse +3 rate up rate down Reply

Obama and the rest of the Democrats need Daboot

January 27 2014 at 9:57 AM Report abuse +7 rate up rate down Reply
1 reply to progressivehoax's comment

But not nearly as much as the GOP CON-artists do. No wonder the GOP in Congress has a 19% approval rating -- only HALF of Obama's...

January 27 2014 at 12:03 PM Report abuse -6 rate up rate down Reply

PE's are at historical lows, no inflation, actually like to have a pct or 2 ,yr over yr. still have real unemployment in the double digit realm. and with the growing legions of not planed for retirees the thought of seeing your retirement dollars dwindle and the yrs ahead grow is not a good feeling. as to the correction- under the conditions described above the only people a correction helps are those who get out early and buy back later , the markets aren't getting ahead of themselves!

January 27 2014 at 9:43 AM Report abuse -2 rate up rate down Reply
Tom Harrell

Does the "MARKET" need a Reboot ? ? ?---------------------------60% of this nations GDP needs a Reboot ! ! (The Freaking CONSUMERS) -------------------We just got done with a Week of SELLING and PROFIT TAKING by the Market Manipulators, to the tune of 3.5% of the DOW. Does Anybody know how much that is in DOLLARS ? ? ? (BILLIONS I'd bet) ---------And on the "BACK PAGE" of the Journal there were stories about more Layoffs at Sams Club and Store Closings and More Consumer Credit Cards just got EXPOSED to the Crooks.

Wall Street doesn't need a RE- Boot------------------What it needs is a Size 12W BOOT up it's CEOs Port-folio.

January 27 2014 at 9:28 AM Report abuse -1 rate up rate down Reply
Jim Marcum

The gouging will commence...

January 27 2014 at 9:17 AM Report abuse +5 rate up rate down Reply