By Anora Mahmudova, MarketWatch
NEW YORK (MarketWatch) -- Friday's modest losses for U.S. stocks
capped the worst week since late January for the S&P 500 and
Dow Jones Industrial Average as worries over the looming vote in
Crimea weighed on sentiment.
The S&P 500 (SPX) ended the day 5.21 points, or 0.3%, lower
at 1,841.13, finishing below a technical level of 1,850 for the
second day in a row. The index recorded a 2% loss over the week.
The Dow Jones Industrial Average (DJI) dropped 43.22 points, or
0.3%, to 16,065.67, falling for the fifth consecutive day. The
blue-chip index is down 2.4% over the week.
The Nasdaq Composite (RIXF) shed 15.02 points, or 0.4%, to
4,245.40 and the 2.1% decline over the past week was the worst
since April 2013.
Jitters in the market were most pronounced in the implied
volatility as measured by CBOE Vix index, dubbed Wall Street's fear
gauge. The index jumped 9.5% to 17.8.
Read the recap of our live stock-market coverage.
"Sentiment is all over the place because of the uncertainty from
the outcome in Crimea over the weekend," said Colin Cieszynski,
senior market analyst at CMC Markets. "However, markets are using
geopolitical uncertainty as an excuse to go lower as they are
overly stretched and are due for a correction."
Investors shrugged off reports on wholesale prices and consumer
sentiment. U.S. wholesale prices fell for the first time in three
months, the Labor Department said Friday. Economists surveyed by
MarketWatch had predicted a 0.2% increase. Consumer sentiment fell
to the lowest reading since November.
Russia-Ukraine conflict, China worries
While global markets have been sensitive to the events in
Ukraine, U.S. equities have showed resilience over the past week.
Some strategists say a crisis in Crimea is already priced into the
markets, while other contend that a vote favoring Russia may become
a catalyst for selling that is overdue. Read: Markets in thin air
as Ukraine, China fears grow.
Worries over China's economy continued to simmer in the
background as well. Bank of America-Merrill Lynch was among several
investment banks that cut the outlook for growth there. It called
for 7.3% growth this year, compared with a previous call of 8%.
Société Générale said "something barely above 7% looks quite
likely."
In overseas markets:
Asian markets had a tough session, as losses for Wall Street
pushed investors into the Japanese yen (USDJPY). The Nikkei 225
index slid 3.3%, while the Hang Seng Index dropped nearly 1%.
European stocks dropped for the third straight session.
Among commodities, crude-oil prices (CLJ4) rose, gold (GCJ4)
rose and copper prices (HGK4) recovered some lost ground, up
1%.
Ulta Salon rallies; Aéropostale tumbles
Among individual stocks, Ulta Salon Cosmetics & Fragrance
Inc. (ULTA) shares added 6.4% after reporting fourth-quarter
earnings late Thursday that squeezed past Wall Street's
estimate.
Aéropostale Inc. (ARO) shares dropped 20% as the teen retailer
late Thursday reported a wider-than-expected adjusted loss in the
fourth quarter.
Shares of General Mills Inc. (GIS) fell 2.4% after the company
released a fresh outlook for the third quarter, saying it sees
third-quarter adjusted earnings of 61 cents to 62 cents a
share.
Shares of Liberty Media Corp. (LMCA) gained 7.2% after the
company late Thursday said it would drop plans to buy the rest of
Sirius XM Holdings Inc. (SIRI), of which it currently owns 53%.
Liberty Media also said it would reclassify its common stock into
two tracking stocks -- one called Liberty Media Group and the other
called Liberty Broadband Group -- in a move that is expected to be
completed in the third quarter.
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Markets in thin air as Ukraine, China fears grow
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