The current three-month rally may have run out of steam as the Dow suffered a triple-digit decline yesterday, shedding 200.72 points or 2.35% to close at 8339.01. The Dow has closed with triple-digit losses three times so far in the past three weeks, and 31 times so far in 2009. This compares to 504 triple-digit in history, 84 of which occurred in 2008 including the largest 1-day point decline in history of 777.68 points or 6.97% on September 29.
Stocks suffered their worst one-day loss in two months driving the S&P 500 back into negative territory for the year.
"I think the market is going to struggle a little bit," said Cashin. "I think the wording of the Fed statement in the middle of the week is key. Can they take care of the 'bond vigilantes' and start to bring mortgage rates back down?"
Sunday was the official start of summer as the summer solstice, the day when the Earth's axis is most inclined toward / away from the sun, occurred. Here are the historical averages for the markets and last year's biggest gainers between the summer solstice and the autumnal equinox:
On a week where the US markets continued to stall with all major indexes negative for the week with quadruple witching, bank regulation, a sell off in energy, the markets await the Fed meeting next week closing mixed for the day on Friday.
Today is a quadruple-witch day. Quadruple-witching occurs on the 3rd Friday of every quarter when index futures, index options, stock options and stock futures expire on the same day. Here is a look at how quadruple-witches have affected the markets.
At the March 9 bottom, the banks were falling fast and behemoths like Google were at risk of falling out of the Top 20 biggest companies in the S&P 500. Three months later, that has changed significantly.
"I think this is probably the March rally beginning to roll over, the question is how much of a correction does it turn into," Cashin told CNBC. "There's going to be a lot of jockeying around in the next few days."
With the futures pointing south this morning, the Nasdaq could be down for the fourth straight day while the S&P and Dow are right behind with a potential third day of declines. If the day closes down, this will be the first time we have seen streaks like this in awhile.
New U.S. housing starts and permits surged in May from record lows; and the producer price index (PPI) rose at a slower pace despite higher gasoline prices. What does it mean for the stock markets? Art Cashin, director of floor operations at UBS, offered CNBC his insights.
The Dow Industrials briefly turned positive for the year earlier this morning. WAHOO! But wait…the S&P 500 turned positive for 2009 nearly one month ago and is now up over 4.5% this year. So why the performance lag in the Dow (compared to the S&P)?
Both the Dow and S&P 500 tumbled Monday, marking their worst slide in a month, after manufacturing data and a commodities sell-off dragged down investor sentiment.
Investors are hoping to get a better handle on the direction of interest rates after St. Louis Fed president James Bullard spoke with CNBC.
The Dow, S&P and Nasdaq were all down over 2%, as of late this morning. While these moves are significant, we have seen drops like this before in this rally.
Stocks are entering a corrective phase and levels of high volatility are likely ahead, Bob Doll, Vice Chairman and Global Chief Investment Officer of Equities at BlackRock, told CNBC.
On a week where oil topped $73 per barrel for the first time in 8 months before receding on Friday, treasury auctions moved the equity market, and GM and Citi were replaced in the Dow, the markets are flat to positive on the week, but the Dow manages to go positive year-to-date.
The Nasdaq's 50-day moving average crossed over its 200-day moving average last week. Expect the same for the Dow and S&P in the days ahead.
Stocks declined, but ended well off their intraday lows, Wednesday after the 10-year Treasury auction, which had a much higher yield than expected.
As we mentioned earlier today, the major indices have posted strong gains during the current 3-month old bull market. This comes as the S&P flirts with a 7-month high, the Dow tests its January highs, and the Nasdaq hovers at 8-month highs.
Stocks skidded Wednesday as techs dragged and the jump in oil prices spurred worries about the recovery in consumer spending. Stocks had opened higher, buoyed by Home Depot's raised outlook, but those gains quickly faded.