Stocks Log Worst Quarter Performance in Years
Oct 2, 2011
Posted by Jody Eisenman | Filed under Uncategorized
In a fitting end to a rocky quarter for stocks, the DJIA lost 240 points Friday to close below 11,000. The S & P 500 currently sits at 1131, which is only 30 points away from the 52 week low. All told, the DJIA and S & P lost over 12% for the quarter, with the NASDAQ losing over 14%. Year to date, the S & P is down about 10%. One of the most disconcerting events for bulls is that when the market falls, it seems to take almost everything with it. Usually, there are areas which will buck the downtrend. However, this was not the case this past quarter. For example, commodity prices dove with low interest rates and the expectations of reduced demand. Spot gold lost $163, or over 9% for the month. Copper prices have plunged, with futures losing about 25% this past month. Steel and aluminum prices are down as well. USX (formerly known as US Steel) closed right around 22. The stock changed hands as high as 180 in June of 2008. Here is a link to an article detailing the ten worst sectors this past quarter.
One could say that the absence of the Fed’s QE3 may have led to heavy caution on the part of investors. However, I’m sure the lack of growth in the US and the European problems played a part. As has been the case for the last two months, volatility remains extremely high. The VIX closed just below 43, which is pretty close to its’ high for the year. We are about to enter earnings season, starting with Alcoa. Will it be enough to pull the market out of this decline?
