Stock market slumps, extending its decline
Companies that sell nonessential goods take biggest hit, while tech and biotech sectors stabilize.
new york » For investors, a volatile stock market passed a worrisome milestone on Monday. The market logged its longest losing streak in twomonths, and extended a sell-off that began last week.
After biotechnology and Internet stocks pulled the market lower on Friday, it was companies that sell nonessential goods and services that dragged on the market to start the week. Concerns about earnings and sales drove declines. CarMax slumped after the used-car dealer reported lower net income, and Mattel dropped on concerns about demand for big-name toys.
Stocks have been volatile this year after surging in 2013. Investors now appear to question whether their lofty prices will be justified by what’s expected to be slower growth in first-quarter earnings.
“The markets are struggling to choose a direction,” said JoeTanious, a global market strategist for JPMorgan Funds. “I suspect that this choppiness in the markets is something we are going to be seeing for some time to come.”
The Standard & Poor’s 500 index fell 20.05 points, or 1.1 percent, to 1,845.04. It has fallen for three straight days, the longest losing span since late January, and has shed 2.4 percent since its all-time high of 1,890.89 on April 2.
The Dow Jones industrial average dropped 166.84 points, or 1.02 percent, to 16,245.87 Monday. The Nasdaq composite had the biggest decline, falling 47.97 points, or 1.2 percent, to 4,079.75.
There were signs of stability in the market. Technology and biotechnology stocks, which were pummeled by investors at the end of last week, were mixedMonday.
Facebook edged up 20 cents, or 0.4 percent, to $56.95 on Monday after it dropped 4.6 percent Friday. Consumer discretionary stocks — companies that sell goods and services that are not necessities for shoppers — saw the biggest decline among the S&P 500’s 10 sectors.