By Anora Mahmudova and Carla Mozee, MarketWatch
NEW YORK (MarketWatch) -- After a sharp selloff in U.S. stocks
on Friday the main benchmarks recorded their deepest weekly
declines in more than two years.
The tech-heavy Nasdaq Composite (RIXF) dropped 102 points, or
2.3%, to 4,276.24 and suffered the worst weekly declines since May
2012. The index undercut a key support level, prompting fears of
further declines.
The S&P 500 (SPX) fell 22 points, or 1.1%, to 1,906.13,
losing 3.1% over the week, its biggest weekly drop since May 2012.
The benchmark index is a hair's breadth away from undercutting its
key support level.
The Dow Jones Industrial Average (DJI) dropped 115 points, or
0.7%, to 16,544.10, and lost 2.7% over the week. The blue-chip
index turned negative for the year and also fell below its key
support level.
The whip-lashing equity moves have been characterized by a spike
in volatility (a measure of fear in the markets) on concerns about
slowing global growth. The widely watched CBOE VIX (VIX) a gauge of
current fear in the market surged 45% over the week and is at
highest level since February.
"Bad economic data is now being viewed as bad and the dovish
signals from central banks are now being taken as a sign of
weakness rather than a reason to ramp up equities," wrote Jonathan
Sudaria, a dealer at Capital Spreads, in Friday note that
highlighted the rout in European stocks. The Stoxx Europe 600 was
looking at its biggest weekly loss in more than a year, with
Germany's economic ministry saying Friday the growth outlook for
Europe's largest economy is dimming.
Data: The prices paid for imported goods fell 0.5% in September
and declined for the third straight month, another sign that U.S.
inflationary pressures remain muted. The main reason: falling
worldwide oil prices.
Stocks to watch: Biggest losses came from the technology sector.
Internet stocks were hit hardest, with the Global X Social Media
Index ETF (SOCL) down 3.1%. Twitter, Inc (TWTR) fell 8.8%, while
Facebook, Inc (FB) lost 3.9%.
Tesla Motors Inc. (TSLA) late Thursday unveiled its latest Model
S car. But shares slid 7.8% .
Symantec Corp. (SYMC) shares slid 6.4%. The security software
maker late Thursday said it plans to split in two publicly traded
companies.
Juniper Networks Inc. (JNPR) fell 9% after late Thursday's
warning that fiscal third-quarter revenue and adjusted earnings are
likely to come in below its previous estimates.
Exact Sciences Corp. (EXAS) shares rallied 36% as the company's
Cologuard test to detect colorectal cancer will be covered by
Medicare.
Alpha Pro Tech Ltd. (APT) is up 53% and Lakeland Industries Inc.
(LAKE) is up 11% following gains from Thursday amid rising Ebola
outbreak concerns. Alpha Pro Tech's infection control unit makes
face masks and eye shields, and Lakeland makes protective clothing
for health care and first responders.
Other markets: Crude-oil futures ended modestly higher Friday,
but notched weekly losses that were the steepest since January for
New York-traded oil.
Gold futures (GCZ4)edged lower Friday, with a stronger U.S.
dollar trumping a further wave of risk aversion as global equities
declined, taking a cue from a sharp selloff in U.S. stocks a day
earlier. The dollar (DXY) was slightly higher against its rivals
after Thursday's fall to a fresh three-week low. In Asia, Hong
Kong's Hang Seng Index and Tokyo's Nikkei Average fell 1.9% and
1.2%, respectively.
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