Stocks mixed as techs get hit hard

Click for more market data.

NEW YORK (CNNMoney)

The Dow Jones industrial average and the S&P 500 were flat in mid-morning trading. Strong earnings from Dow component Caterpillar (CAT, Fortune 500) helped to keep the broader market's losses at a minimum. Shares were up nearly 6% after the construction equipment company easily blew past earnings and sales estimates, and approved a new $10 billion stock buyback program.

The Nasdaq was down more than 1% and CNNMoney's Tech 30 index also fell. Shares of Twitter (TWTR) plunged. Fellow social media companies Facebook (FB, Fortune 500) and LinkedIn (LNKD) also were markedly lower, as was online streaming giant Netflix (NFLX).

Last week was a rough one for U.S. stocks. The Dow shed around 2% Friday to end the week down 3.5%. The Nasdaq and S&P 500 both closed more than 2% lower Friday.

The market's so-called fear gauge, the CBOE Market Volatility Index, or VIX (VIX), shot up 25% on Friday, the biggest one-day percentage jump since last year's Boston Marathon bombings. But the stress eased slightly Monday, with the VIX falling about 5%.

CNNMoney's Fear & Greed index, which looks at the VIX and six other gauges of sentiment, hit a level indicating "extreme fear" in the market.

Related: Buckle up! 2014 will be a bumpy ride

Is a correction brewing? Many investors say stocks could be headed for a correction, typically a drop of 10% or more. Following last year's big rally, stock prices -- as measured by how they trade relative to expected earnings -- have risen to levels that are considered slightly expensive.

Jack Ablin, chief investment officer at BMO Private Bank, said stocks could slide further if corporate results fail to move the needle. "If earnings and revenue don't move at all, the market could drop 10% or more," he said.

So far, corporate earnings have beaten analysts' modest expectations. Of the 123 S&P 500 companies that have reported results through Friday, 68% have had earnings above expectations, according to FactSet Research.

Investors will get results from 130 of the companies in the S&P 500 this week. Apple (AAPL, Fortune 500) is scheduled to report results after the closing bell. The stock was up 1%, making it one of the top performers in CNNMoney's Tech 30 index.

In economic news, new home sales plunged 7% in December from November, according to the Commerce Department. December new home sales were up 4.5% from a year ago. New home sales data can be volatile, and some of the drop could be due to colder-than-normal temperatures last month, said Jim O'Sullivan, chief U.S. economist at High Frequency Economics.

Related: Fear & Greed Index slides into extreme fear

Emerging markets in turmoil. Meanwhile, emerging markets extended their recent losses Monday amid worries about an economic slowdown and liquidity shortfalls.

Last week's sell-off was driven by "well known boogeymen," including market turmoil in Argentina and Turkey, as well as concerns about stress in China's shadow banking system, said David Lutz, head ETF trader at Stifel Nicolaus.

Emerging market currencies fell again, building on a trend from last week that hit the Argentinian peso, Turkey's lira and India's rupee especially hard. However, the lira regained some ground Monday after Turkey's Central Bank announced plans to hold an emergency meeting Tuesday.

European markets were mixed following heavy losses in Asia overnight.

Corporate news: Google (GOOG, Fortune 500) announced it acquired London-based artificial intelligence firm DeepMind Technologies. It's the latest in a series of start-up purchases by the tech giant as it looks to beef up its expertise in artificial intelligence and robotics.

Related: Emerging markets rattled as anxiety rises

Sony (SNE)shares slid after the firm's debt rating was downgraded to 'junk' by Moody's, with the agency warning that profitability at the tech company would likely remain weak and volatile.

Shares of Vodafone (VOD) tumbled after AT&T (T, Fortune 500) said Monday it would not purchase the British telecom company. There had been recent speculation that a bid was imminent.

First Published: January 27, 2014: 9:49 AM ET

Anda sedang membaca artikel tentang

Stocks mixed as techs get hit hard

Dengan url

https://konserasik.blogspot.com/2014/01/stocks-mixed-as-techs-get-hit-hard.html

Anda boleh menyebar luaskannya atau mengcopy paste-nya

Stocks mixed as techs get hit hard

namun jangan lupa untuk meletakkan link

Stocks mixed as techs get hit hard

sebagai sumbernya