A Weak Start To 2014 Continues For Stock Market

Spanish stock market outperforms weak European bourses

Despite the slow start, many analysts say it's too early to external link call a change in the market's upward trend. Reports on the economy Monday contained some hopeful signs. U.S. service companies grew at a steady but slightly slower pace in December. Sales dipped and new orders dropped http://vimeo.com/63935537 to a four-year low, according to a report from the Institute for Supply Management.

Stock Market's Slow Start May Bode Ill for 2014

"The Spanish bond yields are just shy of 4 percent, which is only 80 basis points more than U.S. Treasuries," he said. Clairinvest fund manager Ion-Marc Valahu also said he was "overweight" on the peripheral European markets. "I'm overweight on the periphery, as opposed to France and Germany.

"I don't think we should be too concerned," about the early slump, says David Kelly, chief global strategist at JPMorgan funds. "There's a certain amount of rebalancing going on, which is completely appropriate after the big year that we've seen." Five days may not make a year, but by some measures, the weak start is a bad omen for the market. The Stock Trader's Almanac says that if the S&P 500 rises during the first five days, the index has an 85 percent chance of ending the year higher, based on 40 years of data. The last time the index fell over that stretch was in 2008 when the S&P 500 slipped 5.3 percent as the stock market reeled in the aftermath of the financial crisis. The index ended the year 38.5 percent lower as the Great Recession took hold. Others prefer to give the market more time before assessing a trend.