The selling in the stock market isn't over yet.
First, the scoreboard:
- Dow: 16,245.8 (-166.8, -1.0%)
- S&P 500: 1,845.0 (-20.0, -1.0%)
- Nasdaq: 4,079.7, (-47.9, -1.1%)
And now the top stories:
- The Nasdaq composite and the high-beta, momentum stocks were among the underperformers again today. At its lowest level, the Nasdaq was down by 1.8% before recovering some losses.
- According to Goldman Sachs' David Kostin, the big hedge funds are among the investors exposed to these losers. "These high growth/high multiple stocks feature prominently on our list of 'stocks that matter most' to hedge fund performance," noted Kostin. "Having outperformed by 230 bp through February, our VIP basket dropped 2% in March while S&P 500 climbed 0.8%. Long positions trail by 98 bp YTD. Short holdings created problems by rising 130 bp more than S&P 500 YTD."
- Currently, the S&P 500 is down 2.8% from highs set last week. The Nasdaq is down 6.9% from highs set last month. While this is discomforting, this doesn't mean we're at the beginning of a crash. "Corrections are a normal feature of the stock market, and they are healthy for the market," said Rich Barry in his NYSE MAC Desk Mid-Day Update. "Since we haven’t experienced a correction since late 2012, market-watchers need to be reminded of their frequency." According to Barry, 5% market corrections happen around three times per year, 10% market corrections happen around once per year, and 20% market corrections happen once every 3.5 years.
- Consumer credit balances jumped by $16.48 billion in February. Economists expected balances to increase by $14.0 billion. January's increase was revised up to $13.79 billion from a previous estimate of $13.69 billion. Non-revolving credit, like student and auto loans, jumped by $18.9 billion. Revolving credit, which includes credit cards, fell by $2.4 billion. "This is the largest m/m increase in nonrevolving credit since last February ($21.5bn)," noted Barclays' Cooper Howes. "Nonrevolving consumer credit held by the federal government, which consists of federal student loans, rose by $14.3bn according to our seasonal adjustments (NSA: $6.2bn) and has been responsible for most of the growth in consumer credit since the end of the most recent recession ... We expect the trends of a student loan-driven surge in nonrevolving credit and tepid growth in revolving credit to continue."
- Don't Miss: Wall Street's Brightest Minds Reveal THE MOST IMPORTANT CHARTS IN THE WORLD »
More From Business Insider
- DOW GOES NOWHERE AND MOMENTUM STOCKS GET SLAMMED: Here's What You Need To Know
- STOCKS HIT ALL-TIME HIGH: Here's What You Need To Know
- STOCKS HIT RECORD HIGH AND AUTO SALES SMASH EXPECTATIONS: Here's What You Need To Know
- Stocks & Offerings
- stock market