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US Indexes Fall Further Friday Into Correction Territory

The Dow Jones Industrial Average closed at 25,409.36 on Friday with a loss of 357.28 points or -1.39%. The S&P 500 closed at 2,954.22 for a loss of 24.54 points or -0.82%. The Nasdaq Composite closed at 8,567.37 for a gain of 0.89 points or 0.01%. The VIX Volatility Index was higher at 42.24 for a gain of 3.08 points or 7.87%.

For the week, the Nasdaq fell 7.3%, the S&P 500 was down 8.9% and the Dow Jones returned 9.7%. For the year, the Nasdaq is down 5.8%, the S&P 500 is down 9.3% and the Dow Jones is down 12.0%. For the month, the Nasdaq was down approximately 11%, the S&P 500 fell 12% and the Dow Jones declined 13%.

Friday's market movers

U.S. indexes reported weekly losses matching those of 2008. All three indexes pushed farther into correction territory, constituted by losses of more than 10% from recent peaks. Investors were watching global supply chain risks, travel concerns and falling profit expectations from the rising coronavirus infection count. The number of infections in the U.S. increased by two. Earlier in the week, President Trump discussed a developing vaccine and also a task force for the virus. In other countries, the infection counts increased to:

  • China: 78,832
  • South Korea: 2,337
  • Italy: 888
  • Iran: 388
  • Japan: 226
  • Singapore: 96
  • Hong Kong: 93

Goldman Sachs reported worries on the corporate earnings outlook for 2020. The 10-year Treasury's yield fell to approximately 1.13% with higher demand for low risk. Federal Reserve Chair Jerome Powell also said the central bank would be monitoring the coronavirus affects on the economy for possible policy implications.

Economic reports affecting market trading included the following:

  • Personal income increased 0.6% in January and personal spending increased 0.2%.
  • The PCE Price Index increased 0.1% in January and 1.7% year over year.
  • The Core PCE Price Index increased 0.1% in January and 1.6% year over year.
  • The international goods trade balance showed a deficit of $65.5 billion.
  • Wholesale inventories fell 0.2% in January following a decrease of 0.3%.
  • The Michigan Consumer Sentiment Index increased to 101 in February from 99.8.
  • The Baker Hughes North American oil rig count decreased to 1,030 from 1,035.

In the S&P 500, financials and utilities led losses. In the Dow Jones Industrial Average, the following stocks led losses:

  • JPMorgan (JPM ) -7.01%
  • Boeing (NYSE:BA) -5.81%
  • Johnson & Johnson (NYSE:JNJ) -5.68%
  • Home Depot (NYSE:HD) -5.38%

Small-cap stocks

In small caps, the Russell 2000 closed at 1,459.74 for a loss of 38.13 points or -2.55%. The S&P 600 closed at 884.78 for a loss of 15.06 points or -1.67%. The Dow Jones U.S. Small-Cap Growth Index closed at 9,632.63 for a loss of 105.26 points or -1.08%. The Dow Jones U.S. Small-Cap Value Index closed at 8,399.45 for a loss of 190.21 points or -2.21%.

Other notable indexes

Other notable index closes included the S&P 400 Mid-Cap Index at 1,814.35 for a loss of 37.46 points or -2.02%; the S&P 100 at 1,324.36 for a loss of 7.22 points or -0.54%; the Nasdaq 100 at 8,461.84 for a gain of 25.17 points or 0.30%; the Russell 3000 at 1,730.60 for a loss of 15.11 points or -0.87%; the Russell 1000 at 1,635.44 for a loss of 13.70 points or -0.83%; the Wilshire 5000 at 30,214.99 for a loss of 265.23 points or -0.87%; and the Dow Jones U.S. Select Dividend Index at 654.82 for a loss of 12.25 points or -1.84%.

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This article first appeared on GuruFocus.