Apr. 11 - Summary: Wall St ends the week with a thump, failing at a short rally attempt, as worries of a too-high stock market grow. GM shares slide as CEO's knowledge of safety flaw called into question. Conway G. Gittens reports.
Whiplash. Volatile. That's the best way to describe Friday's market action as Wall Street tried to avoid by ultimately succumbed to another sell-off. Don't worry - it's not the end of the world, says Clear Alternatives CEO Diane Garnick, but more like the end of one phase of a bull run that's gone on too long without a break. SOUNDBITE: DIANE GARNICK, CHIEF EXECUTIVE OFFICER, CLEAR ALTERNATIVES (ENGLISH) SAYING: "We are on the heels of a 30 percent year. We have had significant valuation increases during most of the first quarter and right now is a reasonable time to let a little bit out of the market." And that's exactly what investors did: Blue chips fell 143 points, the S&P 500 rolled back 17, and the Nasdaq tumbled 54 points - another 1.3 percent drop. And the losses are racking up: Blue chips suffered their first weekly decline in four weeks. The Nasdaq had its worst week in nearly two years. With the selling having more to do with worries that the market has run up too much, rather than any specific news event, Gary Thayer of Wells Fargo Advisors thinks this market sell-off can go further. SOUNDBITE: GARY THAYER, CHIEF MACRO STRATEGIST, WELLS FARGO ADVISORS (ENGLISH) SAYING: "This pullback could be a lit bit similar to what we saw earlier this year or a little bit more. I know in January we were down about six percent or so - this time as the market is coming down we could see maybe a 10 percent pullback or so. Maybe a little bit more. We haven't had a 10 percent correction, or bigger than 10 percent correction, in almost two years." But there were a few stocks moving apart from the market's general malaise: General Motors Mary Barra knew about the faulty ignition switches being linked to 13 deaths as far back as 2011, according to an email viewed by the congressional committee investigating GM's recalls. Shares of GM close down 4.1 percent with the committee report seen as another blow to the automaker's reputation. Quarterly profits at JPMorgan Chase came in far weaker than expected as the bank takes fewer risks, but Wells Fargo, the nation's largest mortgage lender, saw profits beat forecasts. Shares of Wells Fargo rallied. JP Morgan shares fell more nearly four percent. As for European markets - there was a sea of red there too - mimicking worries seen on Wall Street.