factors driving US stock market in 2003, 2009

----------------------------------- episode in June and July in 2009-------------------- S&P 500 slipped nearly 10% until earning released shored it up starting from July 13th. factors --World Bank Saw 2.9% contraction --dismal unemployment rate --disappointed Monthly same store sales --Tech spending --Falling commodity price July 7, 2009 1. S&P 500 Slumps to Lowest Level Since May 1 on Concerns Over Tech Spending U.S. stocks tumbled, sending the Standard & Poor´s 500 Index to the lowest level since May 1, on concern technology spending will slow and second-quarter earnings will fail justify a four-month rally in equities. Microsoft Corp. and Google Inc. lost more than 2.8 percent after researcher Gartner Inc. predicted spending on information technology will drop 6 percent this year. Discover Financial Services slumped 11 percent on plans to sell $500 million in shares. Valero Energy Corp., the largest U.S. refiner, slid 4.7 percent as gasoline sank to a seven-week low. "There´s a sense we´ve moved up too quickly," said Richard Sichel, who oversees $1.3 billion as chief investment officer at Philadelphia Trust Co. in Philadelphia. "Expectations are not really positive for the upcoming earnings season. There are still too many doubts on whether we´re seeing a pick-up in economic activity at any point this year." The S&P 500 slid 2 percent to 881.03 at 4:15 p.m. in New York, accelerating losses after falling below its average level over the past 200 days. The Dow Jones Industrial Average sank 161.27 points, or 1.9 percent, to 8,163.6. The Nasdaq Composite slipped 2.3 percent to 1,746.17 as Google, owner of the world´s most popular Internet search engine, traded under $400 for the first time in six weeks. July 03 2009 1. Stocks in Europe, Asia Decline as MSCI Index Has Worst Slump Since March Stocks fell in Europe and Asia, extending the MSCI World Index´s longest weekly losing streak since March, as reports on and Chrysler LLC, retail sales and the service industry added to concern the first global recession since World War II will persist. U.S. markets were closed for a holiday. Metro AG, Germany´s biggest retailer, slipped 2.5 percent as European retail sales dropped more than economists estimated. Seven & I Holdings Co., Japan´s largest retailer, sank 5 percent after saying profits sank 28 percent. Teck Resources Ltd. surged 9.1 percent in Toronto, leading Canadian stocks higher, after the company sold a stake to China´s sovereign wealth fund. The MSCI World lost 0.1 percent to 946.36 at 2:33 p.m. in New York as nine stocks fell for every five that rose. The gauge of 1,654 companies in 23 developed nations has slipped 1.8 percent this week as the U.S. lost more jobs than projected. "People realize the economy isn´t as bright as expected," said Franz Wenzel, deputy director of investment strategy at Axa Investment Managers in Paris, which oversees $678 billion. "Over the next couple of weeks or even months, the stock market will trade sideways at best." July 2nd 2009 1. U.S. Stocks, Commodities Retreat After Unemployment Data; Treasuries Gain U.S. stocks fell, sending the Standard & Poor´s 500 Index to a third straight weekly drop, as a worse-than-projected decrease in jobs added to concern that rising unemployment will prolong the recession. Treasuries rose, while oil retreated to a five-week low. Home Depot Inc., Alcoa Inc. and Travelers Cos. lost more than 3.5 percent after the Labor Department said payrolls shrank by 467,000 jobs last month, 102,000 more than the average economist estimate. Lear Corp., the second-biggest maker of automotive seats, plunged 52 percent on plans to file for bankruptcy. Europe´s Dow Jones Stoxx 600 Index slid 2.6 percent, the most in almost two weeks, following the jobs report. "It´s ugly out there," Jack Ablin, who oversees $60 billion as chief investment officer at Harris Private Bank in Chicago, told Bloomberg Television. "We were trying to gain a little bit of traction on the jobs front, to get less bad numbers on a monthly basis. Clearly this month´s report is a setback." The S&P 500 tumbled 2.8 percent to 897.29 at 4:06 p.m. in New York, extending its slump since June 12 to 5.2 percent and erasing its 2009 gain. The Dow Jones Industrial Average retreated 212.82 points, or 2.5 percent, to 8,291.24. Seventeen stocks fell for each that rose on the New York Stock Exchange, the broadest decline since April 20. About 625 million shares changed hands on the floor of the NYSE, the slowest trading day of the year. The NYSE close was delayed 15 minutes because of "connectivity problems." *Payrolls in U.S. Decline More Than Forecast; Unemployment Climbs to 9.5% June 30, 2009 1. Stocks in U.S. Decline, Trimming S&P 500 Index's Best Quarter Since 2003 U.S. stocks fell, limiting the biggest quarterly advance for the Standard & Poor´s 500 Index since 2003, after consumer June 22, 2009 1. Stocks, Commodities Fall as World Bank Sees 2.9% Contraction; Dollar Gains U.S. and European stocks tumbled, sending the Standard & Poor´s 500 Index down the most in two months, as the World Bank said the recession will be deeper than previously forecast. Treasuries rose, while oil fell below $67 a barrel and metals slumped. Freeport-McMoRan Copper & Gold Inc. and Alcoa Inc. sank at least 8.9 percent, while BP Plc and Occidental Petroleum Corp. lost more than 3.8 percent amid the biggest retreat in the Reuters/Jefferies CRB Index of 19 raw materials in almost three weeks. Bank of America Corp. dropped 9.7 percent as two board members resigned. Both the S&P 500 and Dow Jones Industrial Average erased their gains for the year. "The worries are still out there," said John Wilson, who helps oversee $120 billion as chief market technician at Morgan Keegan & Co. in Memphis, Tennessee. "Nobody is ready to get the trumpets out and herald the end of the recession." The S&P 500 slid 3.1 percent to 893.04 at 4:05 p.m. in New York following last week´s 2.6 percent slump. The Dow average sank 200.72 points, or 2.4 percent, to 8,339.01. Europe´s Dow Jones Stoxx 600 fell 2.8 percent and the MSCI World Index decreased 2.7 percent. Almost 14 stocks fell for each rising on the New York Stock Exchange, the broadest sell-off since May 13. June 16, 2009 1. Stocks in U.S. Drop, Led by Retail, Commmodity Shares; Best Buy Retreats U.S. stocks fell, sending the Standard & Poor´s 500 Index to its biggest two-day tumble since April, as Best Buy Co. posted disappointing sales and commodity producers sank on concern the economic rebound will stall. Best Buy, the world´s biggest electronics retailer, plunged 7.3 percent after profit slumped 15 percent. Freeport-McMoRan Copper & Gold Inc. and Occidental Petroleum Corp. sank at least 4.1 percent to lead commodity shares lower as oil erased a 3 percent gain and copper declined. AT&T Inc. lost 1.7 percent after the largest U.S. phone company was downgraded at Barclays Plc. Treasuries rose for a fourth day and the dollar weakened. The Standard & Poor´s 500 Index, which surged 40 percent from a 12-year low in March through last week, retreated 1.3 percent to 911.98 at 4:02 p.m. New York time. The index slid 2.4 percent yesterday, the most since May 13. The Dow Jones Industrial Average sank 107.24 points, or 1.3 percent, to 8,504.89. "The assumption that the economy was turning, that we were going to see growth again, was a little premature," said Clarence Woods Jr., chief equity trader with Baltimore-based MTB Investment Advisors, which manages $12 billion. "The rally was way too much, too fast." June 15, 2009 1. U.S. Stocks Extend Global Slide; MSCI World Index Falls Most in Two Months U.S. stocks extended a global slide, sending the MSCI World Index down the most in two months, as falling oil and metal prices weighed on commodity producers. Treasuries rose and the dollar strengthened. Alcoa Inc., Caterpillar Inc. and DuPont Co. lost at least 4.2 percent as a weaker-than-expected report on New York manufacturing also dragged stocks lower. Freeport-McMoRan Copper & Gold Inc. retreated 5.8 percent as copper sank by the daily limit in Shanghai on speculation supply may outpace demand in China, the largest consumer of the metal. Benchmark indexes for Europe and Asia sank as BP Plc and BHP Billiton Ltd. tumbled. "There´s no clear trajectory for moving us out of a recessionary environment," said Wayne Wicker, who oversees $33 billion as chief investment officer at Vantagepoint Funds in Washington. "Given the shellshock of the last year and a half, you have a lot of people who don´t think this market is sustainable." The S&P 500, which had climbed 40 percent from a 12-year low on March 9, decreased 2.4 percent to 923.72 at 4:08 p.m. New York time. The Dow Jones Industrial Average, which last week erased its 2009 loss, tumbled 187.13 points, or 2.1 percent, to 8,612.13 as 28 of its 30 companies declined. Almost 13 stocks fell for each that rose on the New York Stock Exchange. The MSCI World Index of 23 developed nations plunged 2.6 percent, the most since April 20. -------------------------------- episode in 2004 ---------------------------------------------- March 08, 2004 3. U.S. Stocks Fall, Led by Technology Shares; Intel, Texas Instruments Drop U.S. stocks fell, led by technology shares such as Intel Corp., as investors shifted out of companies that have led the market's rally during the past year. The Standard & Poor's 500 Index had its biggest drop in a month. ``There is some fear in the marketplace that the winners of the past have run their course,'' said Matthew Brown, who helps manage $26 billion at Wilmington Trust Corp. in Wilmington, Delaware. ``Earnings growth, while positive, will start to trend lower this year.''The S&P 500 fell for the first day in four, dropping 9.66, or 0.8 percent, to 1147.20. Technology shares accounted for half the drop. The Nasdaq Composite Index, which gets 40 percent ofits value from computer-related companies, sank 38.85, or 1.9 percent, to 2008.78. The Dow Jones Industrial Average sank 66.07, or 0.6 percent, to 10,529.48. About seven stocks fell for every five that rose on the New York Stock Exchange. More than 1.25 billion shares changed hands on the Big Board, down 13 percent from the daily average for the past three months. March 9, 2004 1. U.S. Stocks Decline; Nasdaq Composite Index Erases Its Gain for the Year U.S. stocks had their first back-to- back declines in two weeks amid concern that profit growth will slow more than forecast as job creation lags. The Nasdaq Composite Index erased its gain for the year. General Electric Co., the world's biggest company by market value, dropped after selling shares for the first time since 1961. Texas Instruments Inc. and TriQuint Semiconductor Inc. declined even after the chipmakers said demand will push first- quarter revenue higher than forecast. Earnings for companies in the Standard & Poor's 500 Index probably will grow 13 percent this year, based on the average analyst forecast. That's almost twice the average of the past three decades. Still, analysts may be too optimistic, given that the economy has created fewer jobs than expected. ``The robust earnings picture is something that has been largely'' factored into stock prices, said Jack Caffrey, a strategist at J.P. Morgan Private Bank, which oversees $280 billion in New York. ``The question arises: How sustainable will revenue growth be if we're not starting to create jobs.'' March 10, 2004 1. Stocks in U.S. Fall on Profit Concern; Dow Industrials Erase Gain for Year U.S. stocks dropped, sending the Standard & Poor's 500 Index and the Dow Jones Industrial Average to their biggest losses in more than four months, on concern that economic and profit growth this year will be disappointing. Shares of companies that provide raw materials, including chemical maker DuPont Co. and Alcoa Inc., the world's largest aluminum producer, led the retreat. The S&P 500 has jumped 39 percent from its 2003 low on March 11. Profit growth for the benchmark's members will slow to 13 percent this year from 18 percent, according to Thomson Financial, and could stifle the stock rally. ``We've come very far and are facing a decelerating trend in earnings in the next few months; the market is going to price that in,'' said Owen Burman, who helps manage $1.2 billion as chief investment officer at Riggs Investment Advisors in Washington, D.C. ``The market has been expensive for a while.'' March 11, 2004 1. U.S. Stocks Fall as Spain Investigates Source of Madrid Terrorist Attacks U.S. stocks declined, pushing the Standard & Poor's 500 Index and the Dow Jones Industrial Average down for a fourth straight day, after bombs killed more than 190 people in Madrid and a London newspaper said the terrorist group al-Qaeda claimed responsibility. Travel-related stocks slumped, including Continental Airlines Inc., and cruise-line operators Royal Caribbean Cruises Ltd. and Carnival Corp. The synchronized bombing of rush-hour trains gave further impetus to this week's selloff. Benchmark indexes had fallen after a report Friday showed a slower-than-expected increase in employment. The attack may mean ``al-Qaeda is still alive and active out there,'' said J. Michael Gallipo, who helps oversee $8.5 billion at BankNorth Investment Management in Latham, New York. ``Certainly, the market's position has been that if we had another major terror attack in the U.S., all bets are off.'' March 13, 2004 1. S&P 500 Index Falls on Concerns Over Economic Growth, Terrorist Threats The Standard & Poor's 500 Index had its biggest weekly drop in more than five months on concern economic growth will disappoint amid slow job creation and on anxiety about terrorism following bombing attacks in Spain that killed almost 200. Tenet Healthcare Corp., the second-biggest U.S. hospital company, led the declines, after its credit rating was cut by Standard & Poor's Ratings Services. Kroger Co., the largest U.S. grocer, fell after earnings declined amid competition from Wal- Mart Stores Inc. All 10 of the S&P 500's industry groups declined for the week, the first time since November. ``If the terrorist threat seems to be legitimate and it does affect people's tendencies to travel and spend, it's important,'' said Bruce Jon Raabe who oversees $500 million as chief investment officer at Collins & Co. in Larkspur, California. ``The market is reacting to the potential impact on a fragile economic recovery. Job growth could be affected by a slowdown in spending.'' March 19, 2004 1. Stocks in U.S. Fall; S&P 500 Index Has First Two-Week Drop Since November U.S. stocks fell, sending the Standard & Poor's 500 Index to its first back-to-back weekly decline since November. Solectron Corp., the world's second-largest maker of electronics for other companies, led the retreat after saying a measure of profitability dropped. The report sparked concern about how much earnings growth will slow. ``Profit may come in line or even exceed consensus forecasts, but that would still mean that the rate of growth is slowing,'' said Thomas Angers, who helps manage $4.3 billion at Philadelphia International Advisors. ``The market got a little bit ahead of itself on valuation parameters and needs confirmation that earnings will come through.'' The S&P 500 fell 12.58 to 1109.74. The Dow Jones Industrial Average lost 109.18 to 10,186.60. The Nasdaq Composite Index shed 21.97 to 1940.47. Each benchmark decreased 1.1 percent. March 22, 2004 1. Stocks in U.S., Europe Slide on Terrorism Concerns; Intel and AIG Decline U.S. stocks fell, sending the Standard & Poor's 500 Index to a three-month low, on concern that Israel's killing of a leader of the Palestinian group Hamas may prompt retaliatory attacks against American targets. American International Group Inc. and Intel Corp. led the drop, which pushed the S&P 500 to a 5 percent decline from its closing high for the first time in almost a year. Stocks tumbled in all 17 Western European markets after the assassination of Sheikh Ahmed Yassin. The S&P 500 slumped 14.38, or 1.3 percent, to 1095.40, with 455 of the index's 500 stocks declining. The Dow Jones Industrial Average sank 121.85, or 1.2 percent, to 10,064.75 and the Nasdaq Composite Index slid 30.56, or 1.6 percent, to 1909.91. ``Terrorism and consumer confidence are factors that will weigh on investor sentiment, and job growth is not coming through,'' said Jack Ablin, who helps manage $40 billion as chief investment officer of Harris Trust & Savings Bank in Chicago. ``If anyone was looking for bad news to latch onto, they're certainly going to find something.'' March 24, 2004 3. S&P 500 Index Falls a Fifth Day; Energy Stocks Drop as Crude Oil Declines The Standard & Poor's 500 Index fell for a fifth straight day, its longest losing streak in a month, amid concern that the potential for terrorist attacks may dent consumer confidence and spending. Energy shares such as Exxon Mobil Corp. dropped as the price of oil slipped. Technology stocks rose after Hewlett-Packard Co. won a government contract and analysts raised their ratings on Novell Inc. Red Hat Inc. gained after the software company said sales and profit will top forecasts this quarter. Investors need to see ``some stabilization of the geopolitical situation,'' said Eugene Sit, president of Sit Investment Associates, which manages $6.5 billion in Minneapolis. ``The fundamentals look pretty good, the economic outlook looks pretty good at home and abroad and the likelihood for 2005 looks good too.'' The S&P 500 lost 2.63, or 0.2 percent, to 1091.32 and the Dow Jones Industrial Average, which also fell for a fifth day, sank 15.41, or 0.2 percent to 10,048.23. Both indexes closed at the lowest in more than three months. The Nasdaq Composite Index gained 7.68, or 0.4 percent, to 1909.48. Reflection point March 25, 2004 1. Stocks in U.S. Jump, Lifting S&P 500 Index to Biggest Gain Since October U.S. stocks surged, lifting the Standard & Poor's 500 Index to its largest gain in almost six months, after companies including Avon Products Inc. and Activision Inc. boosted their earnings forecasts. Technology shares advanced for a second day, led by Intel Corp. and Microsoft Corp., as the Nasdaq Composite Index had its biggest rally since July. Stocks are attractive given the outlook for corporate profit after a five-day losing streak for the S&P 500, said Carol McMullen, who helps manage $1.5 billion as head of investments at Eastern Investment Advisors in Boston. A government report today showed the number of Americans filing for unemployment benefits held near a three-year low. ``Earnings will begin to drive the market,'' said McMullen, and the economy is expanding. ``Those positive factors will be more prominent in investors' minds.'' ----------------Another slide down -- mainly driven by concern over interest rate increase April 13, 2004 4. U.S. Stocks Decline, Led by Utility, Financial Shares as Bond Yields Rise U.S. stocks fell as a bigger-than- expected jump in retail sales sent interest rates higher in the bond market, raising concern that profit growth will slow. The Standard & Poor's 500 Index dropped for the fourth day in five. Financial shares such as Citigroup Inc., and utilities including Exelon Corp. led the decline. Johnson & Johnson, the world's largest maker of medical devices, rose after quarterly earnings beat estimates. ``Our fear is that the stock market is caught in the middle of a tug of war between a really good economy and great corporate profits, and the risk that interest rates will move up higher than people expect,'' said Chris Trompeter, who helps oversee $325 million at Tradition Capital Management in Summit, New Jersey. ``If rates move up more quickly, the market will struggle.'' Benchmark indexes had their biggest drop in almost a month. The S&P 500 lost 15.78, or 1.4 percent, to 1129.42. The Dow Jones Industrial Average shed 134.28, or 1.3 percent, to 10,381.28, erasing its gain for the year. The Nasdaq Composite Index dropped 35.40, or 1.7 percent, to 2030.08. April 28, 2004 4. Stocks in U.S. Drop on Interest-Rate Concerns; Alcoa, U.S. Steel Decline U.S. stocks fell as reports of increased fighting in Iraq and the prospect of higher interest rates overshadowed better-than-expected corporate profits. The Dow Jones Industrial Average and the Nasdaq Composite Index had their biggest declines since March. 15. ``We have had a little bit of a sloppy market because aside from the earnings picture, there are several other things going on: the interest rate picture, the international situation,'' said Michelle Clayman, who oversees $3 billion as chief investment officer at New Amsterdam Partners in New York. Shares of producers of raw materials declined, including Alcoa Inc. and U.S. Steel Corp., on concern that growth in China will slow and curb demand. The country's efforts to cool expansion in the steel, cement and other heavy industries are working, a Chinese central bank official said. The Dow dropped 135.56, or 1.3 percent, to 10,342.60. The Nasdaq Composite Index shed 42.99, or 2.1 percent, to 1989.54, for its third straight decline. -----------------Another slide in July and Augest 2004---------------------------- factors --earning concern --cut earning estimate July 1, 2004 2. U.S. Stocks Slide, Led by Technology Companies; General Motors Shares Fall U.S. stocks dropped for the first time in three days, led by technology companies, after Smith Barney said Yahoo! Inc. shares are expensive and Morgan Stanley said Intel Corp.'s revenue may fall short of forecasts. General Motors Corp. sank after the company said June vehicle sales fell 12 percent. A report showing jobless claims unexpectedly rose last week also contributed to the decline. ``Expectations are high now and it will be very hard for companies to beat forecasts,'' said Jeff Erickson, a money manager at Lowry Hill, which has $6 billion in assets in Naples, Florida. ``There won't be a lot of fuel in terms of beating earnings estimates to push the market upward.'' The Standard & Poor's 500 Index dropped 11.86, or 1 percent, to 1128.98, the steepest loss in more than six weeks. Drug wholesaler Cardinal Health Inc. led the decline. July 6, 2004 1. U.S. Stocks Drop for Third Day; Veritas, Conexant Shares Drag Nasdaq Lower U.S. stocks fell after Veritas Software Corp. and Conexant Systems Inc. reported disappointing results and Lehman Brothers Holdings Inc. cut its earnings estimate for Intel Corp. The Nasdaq Composite Index had its biggest decline in almost four months. ``It's all about profits,'' said Dave Briggs, head of equity trading at Federated Investors Inc., which oversees $25 billion in Pittsburgh. ``We're starting to see some cracks in the plaster, that they might not be as robust as we originally believed.'' The highest oil prices in a month helped push benchmark indexes lower for a third day. The Standard & Poor's 500 Index lost 9.19, or 0.8 percent, to 1116.19, with technology shares accounting for half the drop. The Nasdaq, which gets two-fifths of its value from computer stocks, fell 43.23, or 2.2 percent, to 1963.43. The Dow Jones Industrial Average shed 63.49, or 0.6 percent, to 10,219.34. July 8, 2004- disappoint sales from Yahoo July 21, 2004 - disapointing results from companies including Motorola Aug 5, 2004 - disappointing monthly retail sales growth pesist in July Aug 6, 2004 - job growth unexpected slow Aug 12, 2004 - disappointing result from HP Reflection point Aug 16, 2004 - excitin profit from Kmart and slipping oil price