STOCKS TANK: Here's What You Need To Know

REUTERS/Jacky Naegelen. French cyclist Robert Marchand (C), aged 102, reacts with Gerard Mistler (L), President of the Ardechoise Cycling Club, after he covered 26.98 kms in one hour at the indoor Velodrome National in Montigny-les-Bretonneux, southwest of Paris January 31, 2014. Marchand set a new record in the Masters + 100 category established by the International Cycling Union (UCI).

Stocks fell hard Friday, completing a month that saw the Dow decline more than 4%. Here’s the scoreboard:

S&P500: 1,782.53 -11.66, -0.65%
Dow: 15,698.52 -150.09, -0.95%
NASDAQ: 4,103.88, -19.25 -0.47%

And now the top stories:

  • Core PCE inflation climbed 1.2% in December, in-line with expectations. BI’s Matt Boesler explains why inflation reports are the hot new thing. “Given the increased significance inflation has taken on lately in the Fed’s forward guidance on the likely future path of short-term interest rates, some on the Street — like Goldman Sachs chief economist Jan Hatzius and Credit Suisse chief economist Neal Soss — believe inflation reports are the new jobs reports.”
  • The BEA said personal income and personal spending gains were basically non-existent last month. “Weakness in hours and earnings in the employment report pointed to lower wage and salary income, and slowing farm income support payments are also likely to be a drag again, so overall personal income should be little changed,” Morgan Stanley’s Ted Wieseman wrote clients.
  • The final leg of the Keystone XL Pipeline appeared to take one step closer to getting approved after the State Department concluded its construction was unlikely to have much impact on greenhouse gas emissions.
  • The savings rate fell to 2008 levels, but the decline is unlikely to continue. “Even with better income — December was hit by the weather — we look for real spending to slow to 2-2.5% from 3.3%. The chart shows that the saving rate is now below the low seen in the 2002-04 period, before the housing boom allowed it to fall even further. With a repeat of the housing boom unlikely, the saving rate likely will struggle to stay at this low level,” Pantheon’s Ian Shepherdson said.
  • Consumer confidence fell in January, but the drop to 81.2 was less than expected.
  • Chicago PMI for January beat expectations, but the survey’s employment subsector fell to its lowest level since April. 
  • Zynga, Chipotle, and Wynn shares all had monster days. Mattel and Amazon plunged.

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