January market finishes weak
This, even though consumer spending surged in the fourth quarter of 2014.
The U.S. stock market capped a rough month Friday, delivering its third loss in five days and extending its declines for the year.
The Dow Jones industrial average dropped 251.90 points, or 1.45 percent, to close at 17,164.95. The S&P 500 index lost 26.26 points, or 1.30 percent, to 1,994.99. The Nasdaq composite fell 48.17 points, or 1.03 percent, to 4,635.24.
For January, the Standard & Poor's 500 index fell 3 percent, its worse monthly performance in a year. While the U.S. economy continued to show signs of strength, energy companies suffered from a sharp drop in oil prices and some big multinational companies saw their earnings dinged by a stronger dollar.
Concerns about a surging dollar intensified Friday after Russia's central bank unexpectedly cut interest rates to 15 percent from 17 percent to help the weakening economy. That sent the ruble down against the dollar.
Before the U.S. market opened, the government said that the economy grew 2.6 percent in the last quarter of 2014, as weaker government and business spending held growth back.
But other news signaled health in the U.S. economy. Consumer spending surged in the final three months of 2014. The Labor Department reported that wages and benefits rose last year by 2.2 percent, the biggest calendar-year increase since 2008.
Amazon.com and Visa reported strong results late Thursday. Amazon jumped 13.7 percent, while Visa rose 2.8 percent.
Several companies didn't fare as well, including Ugg footwear maker Deckers Outdoor and the parent of Hawaiian Airlines, which offered discouraging outlooks. Deckers slumped 19.7 percent, while Hawaiian Holdings slid 27 percent.
The one sector that rose was energy. Benchmark U.S. crude rose $3.71 to close at $48.24 a barrel in New York. The price rose on expectations of lower supplies as the number of working drilling rigs continued to fall. Concerns over an attack on oil-rich Kirkuk, Iraq, by Islamic insurgents also spurred oil buying and higher prices.
But oil remains in a deep slump. The price of benchmark U.S. crude has fallen from over $107 last June.
Demand for ultrasafe bonds rose. The yield on the 10-year Treasury note fell to 1.66 percent, the lowest since May 2013. Yields fall as bond prices rise.