It looks like some traders may have opted for a long weekend, as all three major indices opened April 25 on a slow note. This finishes a week that started with a six-day rally from the S&P 500 on a rather sour note.
Saturday, April 26, 2014
As of 11:30 a.m. Eastern, the Dow Jones Industrial Average sat 144.88 points down, a 0.88 percent drop to 16,356.77. Its performance pulls it further from its April 4 high of 16,609.85. After the rally it experienced in the early days of the week, the S&P is on track to have a disappointing Friday. It was down 14.51 points, or 0.77 percent, to sit at 1,864.10 - a far cry from its one-month high of 1,894.52, which it reached on April 4. The Nasdaq saw the most severe drop of the three indices, falling 1.54 percent, or 64.0520 points, to reach 4,084.2860. This is nearly 200 points down from its April 3 high of 4,283.0260.
What started off as a promising week lost its way to end on disappointing numbers. So what went wrong, and how long can we expect to see such results? All eyes have been on the growing tensions between Russia and Ukraine, as the former mobilizes its troops to the border and the latter continues to take a stand against pro-Russia separatists.
"For the markets, the endgame on the Ukraine is how serious the U.S. and its allies are about isolating Russia," Andrew Busch, editor of geopolitical and financial newsletter The Busch Update, told USA Today.
Unless the situation is resolved, it's likely that traders will continue to see the markets sag, especially onriskier ventures. International issues have even overshadowed some of the more positive earnings reports that have been released. According to The Wall Street Journal, nearly half of the S&P 500 have reported their first-quarter results, and overall earnings per share are currently up 0.2 percent from their 2013 levels, surpassing the expectations of industry experts, who reportedly were ready for a 1.4 percent drop.
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