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Video Timeline: Wall Street's Volatile Week

Worries about the health of Americans' home mortgages, some disappointing manufacturing data, plus the expiration of futures and options made for a volatile week in the stock market.

The key indices ended the week lower, with the Dow losing 1.4%, the S&P 500 off 1.1% and Nasdaq down 0.6%.

The market started out the week with a gain but by Tuesday, stocks were caught in a down draft. The Dow Industrials' 240-plus point decline Tuesday ended a string of up days that had kept the blue-chip index above its March 2 low of 12,114.10.

Investors were again jolted Wednesday when the Dow made an intraday move below the psychologically important 12,000-level for the first time since Nov 2006. The market wound up closing higher that day but the 263-point trading range highlighted ongoing investor uncertainty.

A surprise spike in producer prices in February on both the headline and core levels failed to stoke inflation fears, a week ahead of the FOMC's latest meeting on interest rates, and the market posted another modest gain Thursday.

The CPI behaved more predictably than the PPI in February and the data's release set a positive tone for the open Friday. Regional manufacturing data from the Philadelphia Fed was surprisingly weak as was data in the New York region's Empire State Manufacturing Survey.

Here's a look at the market this week through the eyes of our top market watchers.

Monday

Back On The Bull

The bulls break through once again, with Jason Trennert, Strategas Research Partners LLC chief investment strategist; James Paulsen, Wells Capital Management chief investment strategist; Terri Campbell, Eastern Investment Advisors managing director; Hugh Johnson, Johnson Illington Advisors chairman & CIO and CNBC's Melissa Francis.

Tuesday

Return of The Bears

Optimism about Monday's gain proves short-lived following a down day overseas Tuesday. Brian Stine, Allegiant Asset Mgmt. investment strategist; Steven Lord, Trend Investment Group chief investment strategist; and CNBC's Becky Quick discuss how investors can best protect themselves. As well they should; the Dow falls about 2%.

After The Selloff

Mike Malone, Cowen and Company equity sales & trading analyst, and Maria Bartiromo do a post-mortem on the selloff.

Volatility Returns

Arthur Hogan, Jefferies managing director; Chris Johnson, Johnson Research Group CEO; CNBC's Tyler Mathisen, Maria Bartiromo, Bob Pisani and Melissa Francis discuss the selloff.

Market Outlook

A look at what all these subprime mortgage concerns mean for the broader economy and markets with Charles Campbell, Miller Tabak sr. sales trader; Mike Williams, Nation's Financial Group global strategist; and CNBC's Joe Kernen.

A Cautionary Tale

Wachovia Securities Chief Equity Strategist Doug Sandler counsels caution going forward, saying all savvy market observers "all knew [the meltdown] was coming" -- but a "lot of folks couldn't turn down" the opportunities they saw. He told CNBC's Maria Bartiromo that "at this point in the cycle," all portfolios, whether fixed-income or equities, "have to be high-quality."

The strategist says that investors ought to ask themselves, "What names scared me two weeks ago, but bounced back?" Those are the very companies, he maintains, that should make investors take their second "chance at the exit door." The market is in for "some hard sledding going forward" before the volatility has totally eased.

Two Bulls Do Not Make A Right

I would like to see another 3 or 4% (decline) and make it a full 10%," said Harry Clark, president and CEO of Clark Capital Management Group. "We might not get it now, we didn't get it last year and we might not get it this year, but the market does look OK here. There's a lot of money out there, lot of money chasing stocks still. So we might not get a deeper correction yet."


Ned Riley, CEO of Riley Asset Management, said the bears have been saying stocks are overvalued for two to three years now.
I'm not sure where they get the idea that we need a correction. Just because the market has gone up doesn't mean that we're overextended," he said. "Valuation in the market is still very reasonable at 15 times earnings. When we look at the other things--speculative issues, IPOs are not busting out on the upside. Prices are going down in the IPO market."

The Next Month Looks Good

Chris Johnson, chief executive officer and chief investment strategist at Johnson Investment Research, told "Squawk Box" Monday that he expects the market to rise for at least the next month.

“The bottom line is that we’re seeing a lot of signs right now that the short term technicals and the short-term sentiment are indicating higher prices over the next month or so,” he said.

Wednesday:

The Worst Is Over

Steve Folker, the managing director for growth strategies at Fifth Third Asset Management, says "we've probably seen the worst" of the market pullback. He told CNBC's Mark Haines that the "underpinnings are pretty positive" for the remainder of 2007 -- and sees an environment with plenty of buying opportunities: "Lots of companies are going to show good earnings growth this year."

Alan Gayle, the senior investment strategist at Trusco Capital Management, agrees that the selloff "won't go much further." He explained that the market "is adjusting to a much slower growth environment."

Will Subprime Go Prime Time?

A look at what all these subprime mortgage concerns mean for the broader economy and markets with Charles Campbell, Miller Tabak senior sales trader; Mike Williams, Nation's Financial Group global strategist; and CNBC's Joe Kernen.

Looking Ahead To The Fed

Julia Coronado, Barclays Capital senior U.S. economist and David Wyss, Standard and Poor's chief economist talk to Bill Griffeth about what to expect from the Fed's policy meeting March 20-21.

Don't Blame It On The Subprime

Robert Keiser, an analyst at Thompson Financial, tells CNBC’s“Closing Bell”that trouble in the sub-prime mortgage sector aren’t spilling over into the rest of the economy and it’s therefore unlikely the Federal Reserve will be forced to cut interest rates

“It’s hard to make the case that sub-prime (lending), a very small entity of the U.S. market, is going to create a contagion effect and the Fed will have to deal with it later on down the road.”

Breaking Through 12,000

Eugene Peroni, senior manager of equity research at Claymore Advisors, tells CNBC’s Squawk on the Street” that the Dow Jones Industrial Average could fall below 12,000. And indeed it does for the first time in five months.

“I think it’s very plausible,” he said Wednesday. “The fact that we have had the second test of the lows that we saw at the start of March is significant -- there’s more to be shaken out of this market before we really hit a good bottom and have a sustainable, reliable recovery.”

Thursday

Get Offensive, Think Big

After Wednesday's modest gain, the market shakes off a negative inflation report in the morning and basically hugs the break-even line before closing with a small gain. Appearing at Citigroup's Small- and Mid-Cap Conference in Las Vegas, the firm's chief U.S. equity strategist Tobias Levkovich tells "Squawk On The Street's" Mark Haines that a client survey shows a "lot of caution out there," adding that some 45% of respondents at the conference said they were "worried" about the chances of a recession this year, and believe the Russell 2000 index will stay relatively flat. Levkovich advises investors to "get offensive", targeting large-cap stocks in the beaten down tech and retail sectors.

Soft Landing On Track

Thursday brings some stability and another modest gain. Stefan Abrams, Millbrook Management Group managing member; Mike Holland, Holland & Company chairman; Vinny Catalano, Blue Marble Research global investment strategist discuss the economy and earnings with Bob Pisani.

The Correction's Over, Buy Now

Now that we've had a 5% decline, look for the S&P 500 to show a double-digit gain for the year, says Tony Dwyer, FTN Midwest Securities equity market strategist. Plus Keith Hembre, First American Funds chief economist and head of quantitative analysis, and Ron Insana, CNBC senior analyst, share their views on the economy, the subprime and the bond market with Maria Bartiromo.

Friday

Doom And Gloom -- A Contrarian View

There's one in every crowd and Oppenheimer Chief Investment Strategist Michael Metz may be a bear worth watching. Speaking before the release of the CPI data, Metz said asset inflation will catch up with the market and stocks will experience major declines.

Look Out Below -- More Volatility Ahead

Christopher Zook, CIO at CAZ Investments, sees little chance the market will perform well the rest of the year and says company-specific news will once again mean something.