DOW - Testing 10,000 again!

By: Abby Schultz, JeeYeon Park


Stocks finished sharply lower Monday amid light volume as confidence about the economy weakened and investors remained cautious ahead of several key reports coming up this week.

The Dow Jones Industrial Average shed 140.92 points, or 1.39 percent, to close at 10,009.73.

The S&P 500 fell 1.47 percent while the Nasdaq slipped 1.56 percent. The CBOE volatility index, widely considered the best gauge of fear in the market, jumped more than 11 percent to close above 27.

All S&P large-cap sectors were lower, led by financials, consumer discretionary and industrials.

The Dow, S&P 500 and Nasdaq ended last week with a rally after the Federal Reserve signaled it would take measures to support the recovery, if necessary. Still, the major indexes are on track to post a loss in August for the first time since 2005.





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Current DateTime: 01:45:05 30 Aug 2010

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A key problem in the market is that the retail investor has withdrawn from the market, said Jeff Saut, chief market strategist at Raymond James.



"Just like we had an optimism bubble 10 years ago, we have a pessimism bubble today," Saut said.