Fed Official's Remarks End Dow's 20-Tuesday Winning Streak

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The Tuesday winning streak is over.

The Dow Jones Industrial Average (^DJI) fell 76 points. That's well off session lows, but it still ends the Dow's quirky streak of 20 straight gains on Tuesday. That's the longest streak of gains on any one day of the week since 1968. Meanwhile, the S&P 500 (^GSPC) lost 9, and the Nasdaq (COMPX) dropped 20.

The decline was set off by comments from Esther George, president of the Kansas City Fed. In prepared remarks, she said it was time for the Fed to scale back its bond buying program.

Most market pros believe that program is the major factor in the market's rally over the past year.

PASADENA, CA - MAY 30: A driver fills up at a Valero gas station in an area where the price of a gallon of a gallon of gas typically ranges from as low as $4.20 to more than $4.50, and diesel sells for more than $5.00, on May 30, 2008 in Pasadena, California. As fuel prices continue to hit near-daily record highs, the average price for a gallon of regular for the rest of the nation is expected to surpass the four-dollar mark in within days. (Photo by David McNew/Getty Images)
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Some stocks in the energy patch lost ground. Exxon-Mobil (XOM) and Chevron (CVX) both fell nearly 1 percent. Valero Energy (VLO) dropped 3 percent.

Retailer Home Depot (HD) fell 2 percent, and a long list of Dow stocks lost more than 1 percent, including Microsoft (MSFT), Boeing (BA), Alcoa (AA) Hewlett-Packard (HPQ) and IBM (IBM). Big Blue made a $2 billion acquisition to beef up its cloud computing operatoins.

Merck (MRK) bucked the downtrend, rallying for a second day in a row. It reported positive test data Sunday on a cancer fighting drug.

And GM (GM) gained 1.5 percent. It's being added back to the S&P 500 less than four years after declaring bankruptcy.

G-III Apparel (GIII), which makes goods for the likes of Calvin Klein and NFL teams, soared 21 percent on better-than-expected earnings.

But Dollar General (DG) slid 9 percent. It lowered its forecast for the full year.

Others big movers:
  • Salesforce.com (CRM) slid 7 percent after agreeing to pay $2.5 billion dollars to buy a business software maker, ExactTarget (ET).
  • Pandora (P) fell 5 percent. That's on top of Monday's 10 percent decline on reports Apple (AAPL) is about to launch a competing music streaming service.
  • The biotech firm Biogen (BIIB) also took a hit for a second day in a row, losing another 3 percent.
  • And Monster Beverage (MNST) rallied 10 percent on a report that sales jumped last month.

-Produced by Drew Trachtenberg


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45 Comments

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kluj1

so not true....the selloff began a week ago or so...higs were made in May

June 05 2013 at 8:26 AM Report abuse rate up rate down Reply
1 reply to kluj1's comment
kluj1

higs = highs

June 05 2013 at 8:27 AM Report abuse rate up rate down Reply
thefacts22

If you have any economic education,and do not want to remain silent........The fact is that our economic policies are taking this Nation to collapse.........of course I am NOT stupid and gamble in the market,until the end is near....w.e are in the hands of crony investors........

June 05 2013 at 7:38 AM Report abuse -1 rate up rate down Reply
SAM

Unbelievable how someone opens their mouth with an opinion and the stocks soar up or down!

June 05 2013 at 2:07 AM Report abuse +1 rate up rate down Reply
John Perry

I guess obama has decided his wealthy friends on Wall Street have made enough money.

June 05 2013 at 12:03 AM Report abuse rate up rate down Reply
h.hughjardon

This article reaffirms two thing......the market and earnings rally this year have nothing to do with obama and everything to do with big ben.


And 2)....Everyone that keeps saying obama saved GM from bankruptcy is, to be nice, uninformed. GM did go through bankruptcy.......obama bought the company via the UStreasury.

June 04 2013 at 9:54 PM Report abuse rate up rate down Reply
1 reply to h.hughjardon's comment
usmcflretiree

only you ar4e saying Obama saved GM from bankrupcy, What he did was same GM jobs and the company. His way thery were able to come back and I thank him for that. The regular bankrupcy proceedings would have seen GM sold off in pieces and gone forever like Mitt Rommey use3s does to companies that he takes the reins of. I retireed from GM before they ever had a problem and lost a lot of things I was promised in retirement but I made a bundle investing my savings in GM stock over the years. I did lose a little when the market crashed and got out of stocks. I'm glad they are still around so I can buy their cars.

June 05 2013 at 7:44 AM Report abuse +1 rate up rate down Reply
1 reply to usmcflretiree's comment
h.hughjardon

Hey dumbass. What I'm saying is thst GM went through bankruptcy. Did you not read the article.....or anything but left wing tabloids? Not to mention, the stock value is billions in the hole, and the same Chinese automaker that GM has been in collusion with since 1997 ended up with 1% of the company in the IPO. Were you one of the previous bondholders of what this bankruptcy dubbed 'old GM' that was forced to take pennies on the dollar? It is highly unlikely that GM would have been parted out in a.traditional bankruptcy. Explain how this would make since from a business standloint.

June 05 2013 at 8:52 AM Report abuse rate up rate down
ga7smi

for all you free enterprisers out there - when interest rates rise the next financial bubble will be here - the fed has screwed the pooch

June 04 2013 at 7:59 PM Report abuse -2 rate up rate down Reply
thefacts22

Is not only the bond buying,is the printing of money,and a crazy monetary policy.....The Market was and most likely continue to be a Las Vegas gambling joint.....All the fundamentals are horrible...and the real unemployment remains a mystery.......Oba,s regime policies are a copy of the old socialist Nations of Europe,now living out of the hand outs of Germany

June 04 2013 at 7:54 PM Report abuse rate up rate down Reply
Big John

You mean no more free money to borrow and then charge the consumer 19% interest? How un american can you get!!

June 04 2013 at 7:48 PM Report abuse +1 rate up rate down Reply
1 reply to Big John's comment
thefacts22

Buy with your own money

June 05 2013 at 7:39 AM Report abuse rate up rate down Reply
Charles

I agree with Esther George. We must faceour growing debt issue now or suffer even greater damage , the longer we continue to run the $$ printing presses. No Nation has ever printed its way out of debt and we cannot either!

June 04 2013 at 7:47 PM Report abuse rate up rate down Reply
1 reply to Charles's comment
thefacts22

I agree with you 100%.....USA is directed by morons

June 04 2013 at 7:56 PM Report abuse rate up rate down Reply
Rex Schaefer

I only wish the economy was that of what it was back in 1968!

June 04 2013 at 7:43 PM Report abuse rate up rate down Reply
2 replies to Rex Schaefer's comment
ga7smi

you remember what happene after 1968? - I do - and taxes were much higher then

June 04 2013 at 8:01 PM Report abuse rate up rate down Reply
h.hughjardon

How about the regulatory levels and work ethic?

June 04 2013 at 9:47 PM Report abuse rate up rate down Reply