US market is in a correction

Financial, energy and metals stocks lead the market lower. Apple has fallen 11% since April 26. But Procter & Gamble is off just 2%.

By Charley Blaine May 20, 2010 2:09PM

Exchange floor © Zurbar/agefotostock Updated: 6:45 p.m. ET.

 

If you accept the definition of a market correction as a 10% decline from a recent top, the U.S. stock market, as of today, is officially in a correction -- its first since the March 9, 2009, market bottom.

Officially because the Dow Jones Industrial Average ($INDU), the Standard & Poor's 500 Index ($INX) and the Nasdaq Composite Index ($COMPX) have all fallen more than 10% since peaking in April.

 

The Dow finished the day down 10.2% from its April 26 closing high -- losing 1,136 points in the process. The S&P 500 is off 12% from its April 23 close, and the Nasdaq is off 12.9%.


The correction is quite broad. Seven of the 10 sectors of the S&P 500 are in a correction: energy, materials, industrial, consumer discretionary, health, financial and technology.

The hardest-hit group is the financial sector, down 16.6%. Consumer staples, telecom and utilities are down "only" 6% or more.

Globally, much of the world is correcting, with a few notable exceptions: Germany's Dax Index ($DE:DAX) is off 7.3% since peaking in April. Toronto's S&P/TSE Composite ($CA:OSPTX) is down 6.6%, and India's Sensex Index is off 8.1%.

Among the markets that are hardest hit are China, where the Shanghai Composite Index is off 23.4% since Nov. 23, 2009; Spain, whose IBEX 35 Index ($ES:IB) is off 24.2% since Jan. 6; and Brazil, where the Bovespa Index is down 18.9% since April 8.

 

How the indexes have changed since recent peaks
U.S. indexes Today Chg.
Dow Jones industrials 10,068.01 -10.15%
S&P 500 1,071.59 -11.97%
Nasdaq Composite 2,204.01 -12.89%
Nasdaq-100  1,800.12 -12.42%
Russell 2000   640.04 -13.73%
S&P Midcap 400  738.14 -13.14%
Dow Jones Utilities Average * 359.83 -11.53%
Dow Jones Transports ** 4,160.51 -13.43%
Non-U.S. indexes
Nikkei 225 (Japan) 10,030.31 -11.54%
FTSE 100 (Britain) 5,073.13 -12.91%
Dax Index (Germany) 5,867.88 -7.33%
CAC-40 (France)  3,432.52 -15.26%
S&P/TSE Composite (Toronto) 11,405.95 -7.13%
Shanghai Composite (China)** 2,555.94 -23.44%
Bombay Sensex (Bombay) 16,519.68 -8.07%
Bovespa Index (Brazil) 58,192.08 -18.94%
Hang Seng Index (Hong Kong) 19,545.83 -11.99%
Ibex 35 Index (Spain)*** 9,270.50 -24.15%

Changes measured since April highs.

* Since Dec. 15, 2009 ** Since May 3 

*** Since Nov. 23, 2009  *** Since Jan. 6, 2010.

 

All 30 Dow stocks have fallen since the index's April 26 high. The hardest hit are Intel (INTC), down 30%e Alcoa (AA), down more than 21%; American Express (AXP), down more than 18%; and Boeing (BA), down more than 15%.

The least-affected are Kraft Foods (KFT), down 3.2%; Procter & Gamble (PG), down 3.6%;  Coca-Cola (KO), down about 4.1%; and Verizon Communications (VZ), down 4.1%.

Among non-Dow stocks, Apple (AAPL) is off 12.3% since April 23. Freeport-McMoRan Copper & Gold (FCX) is down 27.2% since April 6. Macy's (M) has slid 18%, and Ford (F) is off 25.3% since April 26.

 

How the Dow stocks have fared since the April 26 peak
Company Thur. Chg.
Kraft $29.13 -3.19%
Procter & Gamble $61.61 -3.64%
Coca-Cola $51.54 -4.08%
Verizon  $27.76 -4.08%
McDonald's $67.66 -4.73%
AT&T $24.96 -4.99%
Wal-Mart Stores $51.30 -5.07%
IBM $123.80 -5.30%
Johnson & Johnson  $60.55 -6.50%
Travelers Companies  $48.42 -6.74%
3M $79.58 -8.99%
Merck $31.82 -9.09%
Pfizer $15.23 -9.45%
Home Depot $32.89 -9.87%
Chevron $73.60 -10.89%
Intel $20.79 -12.72%
DuPont     $35.71 -12.80%
Microsoft $27.11 -12.86%
Exxon Mobil $60.33 -12.93%
United Technologies $66.43 -13.05%
Walt Disney Co.  $31.99 -13.63%
JPMorgan Chase $37.83 -13.81%
Bank of America  $15.30 -15.24%
Boeing $63.00 -15.25%
Hewlett-Packard $45.95 -15.32%
Cisco Systems $23.31 -15.45%
General Electric $16.26 -15.75%
American Express $38.62 -18.07%
Caterpillar $58.67 -18.12%
Alcoa   $11.07 -21.21%
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