Market Wrap: Stocks End Month Down; Shake Shack Shares Rally

US Markets Look To Extend Gains After Losses Earlier In Week
Spencer Platt/Getty Images
By Sinead Carew

NEW YORK -- U.S. stocks ended lower Friday after a volatile session as investors worried about weak U.S. growth data and whether instability in Europe could hurt corporate earnings in the United States, at the end of a rough month for the market

U.S. economic growth slowed sharply in the fourth quarter as weak business spending and a wider trade deficit offset the fastest pace of consumer spending since 2006.

This came after Greece's finance minister said the government wouldn't cooperate with the European Union and International Monetary Fund mission.

%VIRTUAL-pullquote-It feels like a flight-to-safety trade on a month-end. People are putting money into assets that have done well this month.%A brief afternoon rally from rising oil prices failed to stick as investors, nervous about U.S. and global economies, fled to bonds from equities and even sold off utilities stocks, the worst performing sector on the day.

"It feels like a flight-to-safety trade on a month-end. People are putting money into assets that have done well this month," said Peter Coleman, head trader at ConvergEx Group in New York, who said Friday was a good reflection of the month.

The Dow Jones industrial average (^DJI) fell 251.9 points, or 1.45 percent, to 17,164.95, the S&P 500 (^GSPC) lost 26.26 points, or 1.3 percent, to 1,994.99 and the Nasdaq composite (^IXIC) dropped 48.17 points, or 1.03 percent, to 4,635.24.

The S&P energy sector was the only one to finish higher Friday with a 0.74 percent increase after falling as much as 1.5 percent earlier in the session. It rebounded when crude futures rose 8 percent after a survey showed the biggest decline since 1987 in the number of rigs drilling for U.S. oil.

For the week, the Dow and S&P were each down 2.8 percent, and the Nasdaq fell 2.6 percent. For January, the Dow was down 3.6 percent and the Nasdaq was off 2.1 percent.

The S&P fell 3.1 percent in January, which was its biggest monthly loss since January 2014 and its first back-to-back monthly decline since April-May 2012.

Consumer Continue to Spend

Consumer spending was a bright spot as data showed U.S. consumer sentiment rose in January to its highest in 11 years on better job and wage prospects.

That confidence appeared to be reflected in some corporate results. (AMZN) shares jumped 13.7 percent after earnings beat Wall Street expectations on strong holiday season sales.

"Winners are being rewarded, whereas the market has really no tolerance for anything that comes up short," said Randy Bateman, chief investment officer of Huntington Asset Management in Columbus, Ohio.

In contrast to the broader market, shares of burger restaurant Shake Shack rose more than 118.6 percent in their market debut.

About 8.5 billion shares changed hands on U.S. exchanges, well above the almost 7 billion average for the last five sessions, according to BATS Global Markets.

NYSE declining issues outnumbered advancers 2,107 to 991, for a 2.13-to-1 ratio; on the Nasdaq, 2,040 issues fell and 691 advanced, for a 2.95-to-1 ratio.

The S&P 500 posted 18 new 52-week highs and 15 lows; the Nasdaq composite recorded 43 new highs and 86 new lows.

-With additional reporting by Rodrigo Campos and Ryan Vlastelica.

What to watch Monday:
  • The Commerce Department releases personal income and spending for December at 8:30 a.m. Eastern time.
  • At 10 a.m., the Institute for Supply Management releases its manufacturing index for January, and the Commerce Department releases construction spending for December.
These selected companies are scheduled to release quarterly financial results:
  • (FLWS)
  • Anadarko Petroleum (APC)
  • Exxon Mobil (XOM)
  • Lennox International (LII)
  • Pitney Bowes Inc. (PBI)
  • Rent-A-Center (RCII)
  • Sysco (SYY)
10 Ways to Teach Your Kids to Be Frugal
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Market Wrap: Stocks End Month Down; Shake Shack Shares Rally
Children watch what you do, and they learn by example. Without getting into too much detail, show them how you handle your money so they can see the way it should be done. When you plan the family vacation, share with them how you're deciding where to go based on what you can afford. When it's time to go school clothes shopping, explain how you can buy them one just really expensive pair of sneakers or the cheaper pair plus other stuff like that cool new backpack.
We live in a world where we expect things can make us happy. Help your kids understand that experiences -- seeing the world, exploring and learning, spending time with loved ones -- are so much more important than any stuff could be. Nurture their creativity. Feed their curiosity. Make their lives rich with experience, and they'll learn to be content no matter how much money they have.
You don't need to break the bank to have a good time. Help your kids understand that a frugal life doesn't have to be a boring life by choosing entertainment options that are high in fun but low in cost. It costs nothing to walk through a local park and plan a nature treasure hunt. It costs nothing to give your kids a trunk full of your old clothes and makeup and let them play dress-up. It costs nothing to set up a tent in the backyard and let them "camp out" for the night. Focus on fun that's creative, interactive, and physical. Your kids will learn you don't need to spend a ton of money to have a good time.
Making your kids work, in exchange for money, helps them understand that money "doesn't grow on trees" and that Mom and Dad aren't their personal ATM. Budgeting their allowance also teaches the importance of good stewardship of their money; when they know they've only got so many dollars for the week, they're more likely to think twice about whether that candy bar or comic book is really worth purchasing. They also learn to make tradeoffs: they can afford either the comic book or the candy bar, but not both.
When you give your kids their allowance each week, help them divide it into three jars: One for spending money, which they can use right now on anything they want, one for savings, which means putting it aside for things they'll want in the future, and one for giving to a cause of their choice, like animals, the environment, or childhood cancer. Help your children develop the habit of saving for a goal, such as a big toy, a trip to Chuck E. Cheese or a new video game. This will help them learn delayed gratification and the importance of putting money aside.
Frugality isn't about saying "no" all the time; it's about making the most of the money you've got. Help your kids understand this by turning it into a fun game. When you go grocery shopping, challenge them to find the cereal that's the least expensive. When it's time to plan their birthday party, tell them you're willing to spend so many dollars and work with them to plan a fun bash within that budget.
Kids love helping out with grownup tasks. If you're fixing the pipes under the sink, ask your child to hand you tools and explain what you're doing as you work. If you're washing the car, let them lend a hand. If you're planting a veggie garden, ask them to pull weeds or water the plants. Use these moments to teach them the value of fixing things yourself and putting in a little elbow grease. And if your child is extra-helpful, give them a bonus –- and help them put that money into the savings jar.
Reduce, reuse and recycle. We live in a throwaway society where we're always looking for the newest gadget and tossing things in the trash the instant they show a sign of wear. Teach your kids the value of making things last and reducing waste by doing things like mending clothes when they rip and turning old milk cartons and egg containers into arts and crafts.
Help your kids to understand the gimmicks and false promises advertisers use to try to entice you into buying their products. Once they understand how advertising ropes us in, they'll be less susceptible to ads and marketing.
Every kid has said, at one point or another, that they "really need" something because all their friends have it, or they saw it on TV, or any number of other reasons. Gently correct your child when they use this language and explain the difference between something you really, truly need and something you merely want. Help them to understand that money should first be spent on needs, and that you can't expect to get everything that you want.
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