Traders-Blog.com

This was the worst week for the market since March 2003, due to concerns that the economy may be slowing down. The Dow sank nearly 1.9 percent to 10,087.51, which is the worst percentage loss since March 31, 2003. Besides, the Nasdaq fell 38.56 points to close at 1,908.15, marking a six-month low. Meanwhile, the S&P closed at 1,142.62, after falling 19.43 points.

IBM, the world’s leading computer-services company, dropped $6.94, or 8.3 percent, to $76.70, which shows its largest plunge in three years. Besides, revenue across the services, software and hardware units did not meet the forecasted results in the final two weeks of the quarter. IBM’s quarterly earnings of 85 cents a share disappointed investors that expected a higher return.

Today’s economic reports increased investors’ concerns about the slowdown in the economy. For the first time in six months, production at U.S. factories dropped, and consumer confidence fell to the lowest since September 2003 due to rising gasoline prices. According to the Federal Reserve, industrial production rose 0.3 percent in March, while manufacturing produced fewer goods.

General Motors Corp.’s bonds fell to record levels, after the company said that it will stay within bounds of the four-year contract with United Auto Workers. The carmaker, with $297 billion in debt as of December 31, is trying to restrain health costs that have risen about 33 percent in 5 years. GM has the lowest investment-grade credit ratings from Standard & Poor’s and Moody’s Investors Service.

Among Nasdaq components that posted losses, Workstream fell 52.4 percent, after the company posted a loss $3.6 million, or 8 cents a share. Besides, Extreme Networks fell 11.2 percent, after it posted third-quarter results that fell below expectations. Extreme forecasted fouth-quarter sales of $93 million to $98 million, which is below the estimates of $106 million that analysts expected.

All the best,
Manuel Jesus-Backus
The Portfolio Crafter