U.S. Stocks Tumble, Cap Worst Five-Day Start to Year Since 1928 [View all]

[marmar]

(Bloomberg) U.S. stocks fell for a third day, tumbling in a late-afternoon selloff that sent major equity indexes to their worst weekly declines in more than four years, as investors found little relief in moves by China to restore calm to its sinking markets and data that showed resilience in the U.S labor market.

Bank stocks led the late-Friday declines, with JPMorgan Chase & Co. and Citigroup Inc. falling at least 2.2 percent to cap the week with drops of more than 10 percent. Energy shares in the Standard & Poor’s 500 Index lost 1.3 percent to press deeper into five-year lows. Seven of the benchmark’s 10 main industries sank more than 5.5 percent this week.

The S&P 500 dropped 1.1 percent to 1,922.03 at 4 p.m. in New York. The gauge fell 6 percent this week. The Dow Jones Industrial Average sank 167.65 points, or 1 percent, to 16,346.45, and lost more than 1,000 points this week. The Nasdaq Composite Index declined 1 percent, stretching its losing streak to seven days, the longest since 2011.

“We’re still in a risk-off mentality,” said Mark Spellman, a fund manager who helps oversee more than $4 billion at Alpine Funds in Purchase, New York. “I think any kind of risk-on trade mentality that comes in is going to be short-lived until global economic growth improves. It’s not a great time to pile in right now.” ..............(more)

http://www.bloomberg.com/news/articles/2016-01-08/u-s-index-futures-signal-rebound-as-yuan-fixing-soothes-nerves