Dow Jones Falls Approximately 500 Points, Marks 7-Month Closing Depression Every Bit Apple Tree Struggles To Bottom

From Investor's Business Daily:
5:00 PM ET

The Dow Jones industrial average capped a dismal calendar week with sudden losses inwards the stock marketplace set today, losing 2% to postal service its worst unopen since May 3. At 24,100, the Dow likewise sank nearly 1.2% for the week, next a 4.5% shellacking inwards the prior week.

More prove of slowing increase inwards retail sales in addition to industrial production final calendar month inwards PRC in addition to fresh signs of a softening manufacturing painting present inwards Europe spurred wide selling across the board on Wall Street. Fewer than a dozen of 197 IBD manufacture groups posted a gain on Friday.

Apple (AAPL) helped atomic number 82 the wide decline, dropping to a greater extent than than five points, or 3%, to 165.48. The iPhone in addition to digital services titan is instantly trading nearly 30% below a 233.47 peak. Analysts proceed to shave their ratings for Apple on concerns over iPhone sales.

It's non uncommon for stock marketplace set leaders to cast a base, such every bit the cup with handle, in addition to shed 30% to 33% of their marketplace set value inwards the process. Given that Apple has been inwards correction fashion for to a greater extent than than 10 weeks, it's guaranteed that the Dow Jones industrial constituent volition need months to recover in addition to properly cast the right side of a complete novel base.

The S&P 500 slid 1.9% lower acre sellers shell the Nasdaq composite downwardly yesteryear to a greater extent than than 2.2%. The Russell 2000 roughshod 1.5%.

Volume came inwards a comport on higher vs. Th on the Nasdaq, according to early on data. NYSE turnover was about flat. The electrical flow outlook remains nether severe selling pressure. Read IBD's The Big Picture column for a daily assessment of the outlook. The Dec. four Big Picture story noted a substitution downgrade inwards the electrical flow outlook for increase stocks.

Dow Jones Leader Gets Whacked
Johnson & Johnson (JNJ) led the downside alongside the thirty components of the Dow Jones industrials. The medical products giant, which according to a Reuters study had known for decades that its babe pulverization production contained asbestos, plunged xv points, or 10%, to 132.80 inwards book that jumped vii times its 50-day average....MORE 

With the electrical flow DJIA divisor at  0.14748071991788, JNJ's $14.84 reject shaved 100.62 off the Down Jones's only fifty-fifty worse, to accept what is ordinarily regarded every bit alongside the bluest of blueish fleck defensive stocks instruct hitting similar that is a piddling disconcerting.

In olden times when a trader was going brusk against the box he was shorting against the speculative materials at the exceed of his box of certificates. Something similar Johnson & Johnson would live on at the bottom of the pile in addition to and wouldn't instruct sold until things got rattling dire. And fifty-fifty in addition to hence the preference would live on to offering it upward every bit collateral to your friendly neighborhood Shylock rather than sell.

Bluest of blueish fleck defensive issues downwardly 10% is, inwards technical terms, suckey wuckey, non hence lucky.