“Stocks extended their declines in light, choppy trading Friday as investors were reluctant to remain in the market ahead of a weekend, amid worries over a global recession in addition to the ongoing euro zone jitters,” JeeYeon Park reports for CNBC. “The Dow Jones Industrial Average fell below the psychologically-important 11,000 level, after plunging 419 points in the previous session.”
“Hewlett-Packard slumped to a six-year low, plunging 20 percent and dragging the blue-chip index by about 45 points,” Park reports. “The S&P 500 and the Nasdaq also slipped. The S&P is on pace for its second worst four-week losing streak since 1950.”
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Park reports, “[HP] slashed its full-year forecast. HP’s weak forecast comes after rival Dell lowered its revenue outlook earlier this week that dragged down both stocks. At least two firms lowered their rating on HP, while three firms cut their price target.”
“With a lighter-than-usual calendar next week, investors will be closely watching Federal Reserve chairman Ben Bernanke’s speech at Jackson Hole next Friday. Investors will watch for any signs of a possible round of asset purchases (also known as quantitative easing) which will likely help bolster the stock market,” Park reports. “‘I don’t think [Bernanke’s] going to do that,’ said Scott Brown, chief economist at Raymond James, implying that further selloff and volatility may be in the cards.”
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