Friday wasn’t as bad as Thursday, but the declines continued mainly over concerns about Argentina defaulting on its debt. The Dow lost 69.93 points (0.42%) on the day to end the week at 16,493.37. That was a 2.8% decrease for the week and has the Dow well below the 17,000 barrier it was just below at the beginning of the week. The Dow is now down 0.5% for the year.
The S&P 500 fell 5.52 points (0.29%) to end the week at 1,925.15. That was a 2.7% decline for the week, and the largest one week percentage drop for the index since the beginning of June in 2012. The S&P 500 had been flirting with the 2,000 point barrier for a couple of weeks, but now has a long way to go to reach that goal. Even with the large weekly drop, the S&P 500 is still up over 4% for the year.
The NASDAQ composite dropped 17.13 points on Friday to end the week at 4,352.64, a decrease of 0.39% for the day. That was a 2.2% drop for the entire week for the composite. Even with the loses this week the NASDAQ remains up over 4% for the year.
It seems that the largest factor in the drop came from jitters about Argentina and its debt problems. The country defaulted on its debt earlier in the week, and a US judge ordered the country to negotiate with investors after criticizing the country for defaulting on the debt.
The Argentina news overshadowed news that unemployment rose and job growth slowed in July. While this news isn’t good for those working, it signals to the stock market that the Federal Reserve may keep interest rates low which is good for the market. Even with this, there’s still tension in the market about interest rate increases.
There were also some stocks that did well on the day, but couldn’t keep the indexes from falling. Procter & Gamble saw its stock rise 3% to $79.65 on news that was hoping to sell about half its brands over the next couple of years to concentrate on those bringing the most value to the company. Tesla stock rose 4.5% to over $230 a share with the announcement that second quarter revenue was almost double what it had been the previous year.
(Photo courtesy of Jose Maria Silveira Neto)