The weakness continued Monday as investors read the headlines over the weekend. When the Dow falls over 100 points on a Friday, as long as the following Monday is not a holiday the Dow has been negative 68% of the time since 1985. Today the Dow 30 was lower by a whopping 1175 points, the S&P 500 lost 113, and the Nasdaq 100 sold off 273. The market performance even caused the White House to express concern.
Financial stocks led the way doan today as Wells Fargo (NYSE: WFC) shares were the major headline today. The stock fell 9% as the Federal Reserve announced on Friday that they would restrict the size of the bank due to "widespread abuses." Though investors have been fleeing from the bank lately the Fed says that they may not grow their total assets until "sufficient improvements" are made. Almost every analyst downgraded the stock today on the news.
In the Dow, Intel (NASDAQ: INTC) and Apple (NASDAQ: APPL) were some of the names that made headlines as news that Apple may start to look at Intel for chips in their iPhones came out early on. Up until this point Qualcomm (NASDAQ: QCOM) has been the major supplier but that relationship has been rocky at best. Intel was lower on the day by 3.5%, Apple lost 2.5%, and Qualcomm sold off 6.57% on the news.
In the S&P 500, Mattel (NYSE: MAT) was once again one of the leaders as investors continue to support the earnings results and company plans going forward. The company has suffered from the trend of more digital entertainment from the younger population but their efforts to move into that space have started to attract investors to the name. Earnings did disappoint thanks to weak sales in their Fischer Price and American Girl brands.