* Momentum, biotech stocks take another plunge
* S&P 500, Nasdaq post worst weekly decline since June 2012
* Dow down 0.9 pct; S&P 500 off 1 pct; Nasdaq down 1.3 pct
(Updates to close)
By Angela Moon
NEW YORK, April 11 U.S. stocks slid in a
volatile session on Friday, with the Nasdaq closing below the
4,000 mark for the first time since early February.
Selling accelerated late in the afternoon, with the biotech
and other momentum stocks again leading the Nasdaq sharply
lower. JPMorgan's disappointing earnings also gave investors a
reason to sell some bank stocks.
For the week, the S&P 500 fell 2.6 percent and the Nasdaq
lost 3.1 percent, the biggest weekly decline for both indexes
since June 2012.
"Today's decline is what we've been seeing all week. The
weakness in the biotech and momentum names is getting investors
worried about where the market is headed in the near-term,
eventually triggering a selloff in everything," said Robert
Pavlik, chief market strategist at Banyan Partners in New York.
"Our long-term outlook on the market hasn't changed because
if you understand why the market is selling off, you know it's
not rational, that it doesn't make sense," he added.
The Dow Jones industrial average fell 143.47 points
or 0.89 percent, to end at 16,026.75. The S&P 500 lost
17.39 points or 0.95 percent, to finish at 1,815.69. The Nasdaq
Composite dropped 54.372 points or 1.34 percent, to
close at 3,999.734.
The Nasdaq Composite fell through 4,000 for the first time
since early February and many one-time market darlings are now
down substantially from records reached only six or seven weeks
JPMorgan Chase & Co shares fell 3.7 percent to close
at $55.30. The stock was the biggest drag on the S&P 500 after
the bank reported a far weaker-than-expected quarterly profit as
revenue from securities trading fell.
The S&P financial index dropped 1.2 percent. It was
the S&P 500's worst-performing sector.
The Nasdaq biotech index fell 2.8 percent after
rising as much as 1 percent earlier. The Global X social media
index, which includes Facebook and LinkedIn
, slid 2.3 percent. Facebook shares fell 1.1 percent to
$58.53. LinkedIn shares lost 2.5 percent to end at $165.78.
In contrast to the day's sharp downturn, shares of Wells
Fargo & Co rose 0.8 percent to $48.08 after the biggest
mortgage lender in the United States reported a 14 percent
increase in first-quarter net profit.
Shares of Herbalife sold off late in the day after
the Financial Times reported that the Department of Justice and
the FBI had launched a probe into the company. The stock tumbled
14 percent to close at $51.48.
Even with the recent declines, investors appear committed to
equities. Investors in U.S.-based funds poured $8.9 billion into
stock funds in the week ended April 9, data from Thomson
Reuters' Lipper service showed on Thursday.
The latest economic data showed that consumers felt more
optimistic as April got under way. The Thomson
Reuters/University of Michigan's preliminary April reading on
the overall index of consumer sentiment came in at 82.6, the
highest since July, as both current conditions and expectations
The seasonally adjusted producer price index for final
demand increased 0.5 percent last month, the largest increase in
nine months, pointing to some pockets of inflation at the
Trading volume was around 7.3 billion shares on U.S.
exchanges, above the 6.9 billion average so far this month,
according to data from BATS Global Markets.
(Editing by Jan Paschal)