Stocks Slammed As Nasdaq Closes Below 4,000 Points

Feb 3 2014, 3:56pm CST | by

If investors were hoping for a February turnaround after an ugly January, they were sorely disappointed Monday afternoon: all three U.S. indices closed well into the red after a disappointing manufacturing report raised red flags about the strength of the American economy.

The Nasdaq dipped below 4,000 points for the first time since December, closing Monday trading — the first trading day of February — at 3,996.96, for a 2.6% drop. The S&P 500 fell 40.7 points, or 2.28%, and the Dow plummeted 326 points, a 2.08% decline. All but one of the Dow’s 30 components finished the day with losses; the sole gainer was pharmaceutical company Pfizer, which finished Monday trading with an 0.66% increase.

Pfizer recently reported a decline in revenue that was largely caused by drug patent expirations that, previously, afforded Pfizer drugs exclusivity in certain markets. Monday, however, the company reversed its market declines on the news that a trial for a breast cancer drug has seen successful results. In a statement released Monday morning, Pfizer said that the drug under question demonstrated a “statistically significant and clinically meaningful improvement” in the survival rates of women with advanced and newly diagnosed breast cancer.

But thanks to weak data from the Institute for Supply Management’s index of manufacturing activity — which fell to 51.3, well below December’s 56.5 and January’s 56-point consensus — Pfizer’s market gains were the exception to Monday’s market, not the rule.

It was a “much weaker than expected report — and a big surprise,” Jim O’Sullivan, chief U.S. economist for High Frequency Economics, said in a note Monday, noting that while the text of the report suggested possible weather effects, “historically, the index has not been very sensitive to atypical weather, so the report is a bit worrying.”

Weather was certainly the culprit-du-jour over in the auto industry, which saw worse-than-expected auto sales from Ford, GM and Toyota. All three cited January’s bad weather as reasons for their sales declines, though competitor Chrysler happily noted that “the bad weather only seemed to affect our competitors’ stores as we had a great January with sales up 8%.” Ford ended Monday trading with a 2.7% decline, while GM closed with a 2.3% loss and Toyota finished 1.75% down.

Source: Forbes Auto

 
 

Don't miss ...

 

<a href="/latest_stories/all/all/30" rel="author">Forbes</a>
Forbes is among the most trusted resources for the world's business and investment leaders, providing them the uncompromising commentary, concise analysis, relevant tools and real-time reporting they need to succeed at work, profit from investing and have fun with the rewards of winning.

 

blog comments powered by Disqus

Latest stories

IPad Air Giveaway 2014 is Online
IPad Air Giveaway 2014 is Online
Our sister site I4U News is giving away a brand new iPad Air or if you can wait an iPad Air 2. This is an $499 value.
 
 
Your Parent Or Kid Moved In: Are You Covered?
A record 57 million Americans now live in multigenerational family households — double the number in 1980, according to a new Pew Research Center study. And I bet many of them have the wrong homeowner’s or renters...
 
 
Pandora Looks to Challenge Terrestrial Radio's Dominance in Cars
Pandora Media is one of the largest Internet radio providers in the U.S. with more than 75 million active users. While the company’s active user count has increased at a robust pace historically, it is likely to slow...
 
 
Are General Manager Salaries About To Skyrocket? Will There Be A Front Office Salary Cap?
Are General Manager Salaries About To Skyrocket? Will There Be A Front Office Salary Cap?
It’s January 2026. New York Yankees owner Hal Steinbrenner gets out of his driverless car and triumphantly marches before the gathered press to introduce his prized new free agent. It’s a record-breaking contract—over...
 
 
 

Latest from the Network

Aaron Paul enjoying 'lighter' role
Aaron Paul is enjoying starring in a ''lighter'' show after 'Breaking Bad'. The 34-year-old star played meth manufacturer Jesse Pinkman in the US drama series for five years and while he is pleased to be lending his...
Read more on Celebrity Balla
 
Self-critical Ariana Grande
Ariana Grande says she's too critical of her appearance. The 21-year-old beauty insists that although she's an international pop star, she still feels the same pressure to look good as other young women and is trying...
Read more on Celebrity Balla
 
Lily Allen's husband doesn't mind marriage songs
Lily Allen says her husband is comfortable with her discussing intimate details of their personal life. The London-born singer is preparing to hit the road with material from her new album 'Sheezus' and Lily insists her...
Read more on Celebrity Balla
 
Abe glad Modi visited Kyoto
Kyoto, Aug 31 (IANS) Japan Prime Minister Shinzo Abe Sunday said he was happy his Indian counterpart Narendra Modi toured the country's ancient capital Kyoto. "I am very glad that Modi enjoyed the cultural heritage of...
Read more on Politics Balla
 
Modi leaves for Tokyo
Kyoto, Aug 31 (IANS) Indian Prime Minister Narendra Modi departed for Tokyo Sunday evening, on the second day of his five-day visit to Japan. "Goodbye Kyoto," the external affairs ministry spokesman tweeted, as Modi...
Read more on Politics Balla
 
For DINK couples, outsourcing parenthood is cool
New York, Aug 31 (IANS) For double-income-no-kid (DINK) couples, raising a child is the most difficult part. For them, creches and day-care centres in the marketplace are no less than playing the role of real parents...
Read more on Celebrity Balla
 
Philippines seeking defence ties with India after China's moves
Manila, Aug 31 (IANS) Worried over increasingly aggressive moves of China to stake claim on disputed reefs in the South China Sea, the Philippines is looking at establishing defence cooperation with allies, including...
Read more on Politics Balla
 
Ancient metal workers were not treated as slaves
London, Aug 31 (IANS) Ancient metal workers were highly regarded for their skills and were not treated as slaves as popular narratives suggest, says a study. In the course of ongoing excavations at Timna Valley in...
Read more on Apple Balla
 
World Cup is all that matters, not rankings: Clarke
Melbourne, Aug 31 (IANS) Australia cricket captain Michael Clarke feels all that matters is winning the World Cup and not the rankings. Australia are currently the No.1 ranked ODI team followed by India and South...
Read more on Sport Balla
 
Kim's daughter to follow her beauty ritual soon?
Los Angeles, Aug 31 (IANS) It seems like reality TV star Kim Kardashian's 14-month-old daughter North will take after her mother when it comes to maintaining a strict beauty routine as the little one already likes...
Read more on Celebrity Balla