US stocks slide sharply into the close for a second straight day, up against the same problems that have bedeviled them the past week-plus, and the bears are making it clearer by the day who controls the market now.
DJIA slips 3 to 10194, after rising as much as 88 early. S&P 500 falls 5 to 1092, Nasdaq Comp eases 7 to 2204. The major indexes have all been down four of the past five sessions. Yesterday, the Dow rose as much as 84 early, too. And interestingly, the S&P has been holding above support at 1091, a level it tested pretty hard in November before bouncing higher. Well, we’re back there now. The 100-day moving average is 1090.
And tomorrow’s setting up to be one loopy day, between Apple fanboy-fest, the FOMC meeting, the President’s speech, earnings from Boeing and Caterpillar and new home sales.
This morning, traders seize early on consumer confidence report; Conference Board reported confidence rose for a third straight month. But it remains well below even its average over the long-term.
“Confidence remains unusually depressed,” Capital Economics wrote. “This all suggests the legacy of the recession will live long in the mindset of consumers.”
And Verizon, which posted a big 4Q loss on a severance charge, says it’s not seeing the boost from the economy it expected, which will lead to it axing another 13,000 staffers.
“The economy won’t help us as much as we thought,” CEO Ivan Seidenberg said.
Elsewhere, markets were rattled overseas by China’s banks curb lending, for the rest of the month, and S&P’s unusually blunt warning to Japan about its debt. CBO pegs federal budget deficit at $1.3 trillion.