Small Decline not Unusual on Second Trading Day


January 5, 2009

 

Today’s negative close occurring on the second day of the year, is only the 16th such occasion in the 58 years since 1950. The DJIA’s loss of -.91 percent was the sharpest drop, whereas the S&P500 fell  -.47 percent and the NASDAQ  -.26 percent.  Looking at this setback relative to all losses on this day, reveals it as comparatively modest, since five –or one third- of these declines exceeded minus one percent.

 

On the positive side, moreover, only 17 gained more than plus one percent.  Thus the conclusion that this year’s result lies well within the historical experience of this day, where changes greater than one percent occur just about half of the time.

 

 

DJIA                 -.91  percent

NASDAQ         -.26  percent

S&P500            -.47  percent

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