Unrest in Egypt Pushes Market Lower
The U.S. equity market plunged in trading today as concerns over the unrest in Egypt mounted. Thousands of Egyptians marched on the streets the Cairo today, protesting against the government. The concerns in Egypt also overshadowed some positive U.S. economic data.
The Dow Jones ended the day 1.39% lower at 11,823.70, the S&P 500 ended the day 1.79% lower at 1,276.34 and the Nasdaq ended the day 2.48% lower at 2,686.89. Only 2 stocks in the Dow Jones ended the day in green.
All sectors in the S&P 500 ended the day in red, with the Consumer Cyclical stocks being the worst performers. Consumer Cyclical stocks ended the day 3.30% lower. Industrials, Services, Technology and Transportation stocks ended the day more than 2% lower. Only 30 stocks in the S&P 500 ended the day in green.
Ford Motor Company (NYSE: F) shares were one of the worst performers in trading today. Ford shares fell after the company reported disappointing fourth-quarter financial results. Ford reported a sharp decline in its fourth-quarter profit due to weak performance in Europe. Shares of Ford ended the day 13.41% lower at $16.27.
Amazon.com Inc. (NASDAQ: AMZN) shares also saw huge drop in trading today after the company reported its fourth-quarter financial results. Shares of Amazon.com Inc. ended the day 7.22% lower at $171.14.
Other major gainers and losers in trading today included Terremark Worldwide Inc. (NASDAQ: TMRK), which ended the day 34.73% higher at $18.93, Monster Worldwide Inc. (NYSE: MWW), which ended the day 25.43% lower at $15.95, SAVVIS Inc. (NASDAQ: SVVS), which ended the day 13.89% higher at $30.26, PMC-Sierra Inc. (NASDAQ: PMCS), which ended the day 12.79% lower at $7.77, and Coherent Inc. (NASDAQ: COHR), which ended the day 12.67% higher at $53.44.
The concerns over the situation in Egypt today overshadowed U.S. fourth-quarter GDP data. The U.S. economy grew at an annual rate of 3.2% during the fourth quarter of 2010, which is below economists’ forecast of 3.5%. However, consumer spending rose at its fastest pace in four years, indicating a more robust economic growth. Consumer spending rose 4.4% during the fourth quarter of 2010, compared with 2.4% in the third quarter of 2010, and above economists’ forecast of 4%.
The unrest in Egypt also pushed crude oil prices higher. Crude oil for delivery in March gained $3.70 to settle at $89.34 a barrel on the New York Mercantile Exchange.
