By Victor Reklaitis, MarketWatch
NEW YORK (MarketWatch) -- U.S. stocks extended their weekly
decline on Wednesday, joining in a global sell-off and putting the
S&P 500 on pace to stretch its losing streak to three straight
sessions.
Analysts attributed the worldwide selling of equities to worries
about China's slowdown and continued Russia-Ukraine tensions.
The S&P 500(SPX) was last down 3 points, or 0.2%, to 1,864,
leaving the benchmark index 0.7% off its record close on
Friday.
The Dow Jones Industrial Average(DJI) lost 27 points, or 0.2%,
16,325, also dropping for the third day in a row.
The Nasdaq Composite(RIXF) edged down 2 points, or less than
0.1%, to 4,306, losing ground for the fifth straight session.
All three main indexes have picked themselves up off session
lows hit in Wednesday's first half hour of trading, when the
S&P was down 0.7%
Asian markets closed lower on Wednesday, with Japan's Nikkei
benchmark and Hong Kong's Hang Seng shedding 2.6% and 1.7%,
respectively. The Stoxx Europe 600 was last down 1.1%, setting that
index up for its lowest close in a month.
"Economic slowdown in China and geopolitical tension between
Russia and Ukraine are the major hurdles for the markets," said
Naeem Aslam, chief market analyst at Ava Trade, in emailed comments
on Wednesday. A much weaker-than-expected decline in Chinese
exports rocked markets at the start of the week and has continued
to inspire worries. Meanwhile, leaders of the Group of Seven
nations warned Russia on Wednesday not to annex Ukraine's Crimean
region.
Beyond China and Russia-Ukraine concerns, reasons for the global
slump could include a strengthening euro and fresh questions about
Japan's stimulus measures, said Peter Boockvar, chief market
analyst at the Lindsey Group, in a note on Wednesday. He said the
"2014 global market action in its early stage has a definite
different complexion than the easy ride up the chairlift in
2013."
Boockvar noted that many major European and Asian stock markets
are at or below their closing lows on March 3, "when markets
finally reacted lower to Putin's war games," referring to Russian
President Vladimir Putin. Copper, a proxy for global growth, also
has slumped, he added.
High-grade copper(HGK4) for May delivery has traded below $3 a
pound this week, a level not seen by the metal since July 2010.
(Read more: China's role in copper's slide: Why investors should
care
http://blogs.marketwatch.com/thetell/2014/03/12/chinas-role-in-coppers-collapse-why-investors-should-care/.)
A "fear factor" is "creeping" into markets, but there is also a
lack of catalysts, and U.S. stocks aren't far off from their recent
highs, said Peter Cardillo, chief market economist at Rockwell
Global Capital.
"We're not collapsing," Cardillo told MarketWatch. "Basically,
we have no economic numbers to speak of today, and the market is
just following the international markets."
The U.S. economic calendar is empty on Wednesday, leaving
investors to look ahead to Thursday's reading on retail sales, as
well as next week's Federal Reserve meeting. In overseas economic
news on Wednesday, a reading on euro-zone industrial production
showed a decline of 0.2% in January, missing expectations for an
increase and contributing to negative sentiment.
Among individual stocks, VeriFone Systems Inc.(PAY) jumped 12%.
Late Tuesday, the maker of electronic payment devices reported a
fiscal first-quarter loss but it also guided second-quarter revenue
above Wall Street's forecasts.
On the downside, Express Inc.(EXPR) shed 10% after the clothing
retailer said fourth-quarter earnings fell 25% due to extensive
promotions and discounting. (Read more in the Movers & Shakers
column
http://www.marketwatch.com/story/oxigene-doubles-fannie-and-freddie-extend-fall-2014-03-12.)
More from MarketWatch:
Kellner: 5 reasons why stocks will fall
Never forget the market crash: Be an elephant, not a bull
Bogle critiques Klarman's call, backs 'buy and hold'
Subscribe to WSJ: http://online.wsj.com?mod=djnwires