Last updateTue, 21 Feb 2017 4pm

Bears take over market

If you were hoping for a quiet summer holiday, your plans may have changed Friday after the Dow Jones industrial average plunged 1,018 points for the week, down nearly 6 percent.

Signs of a slowdown in the Chinese economy pressured stocks. The brutal selling is all about China, with a tinge of an imminent U.S. Federal Reserve move.

Stay cautious in August

The bears tried their best to knock down the Dow Jones industrial average last week, but the bulls came out feeling chipper as the Dow increased 0.7 percent to 17,477.40 and rebounded from the Chinese currency devaluation.

But we still have the month of August to endure.

Oil prices drive market down

Welcome to the month of August, which is usually characterized by seasonal profit-taking and a low-liquidity environment.

The market was off 1.8 percent last week, ending in a seven-day losing streak. The continuing slump in oil prices and a growing feeling that the U.S. Federal Reserve will raise interest rates in September contributed to the decline.

Earnings pull down Dow

After stocks closed down the final trading day of July, numerous market watchers issued a warning to investors: Prepare for a slowdown in the market because of discouraging reaction to the June-quarter returns.

While earnings season began with positive surprises, as more companies report, the broad market continues to move lower. It is the time of year when the market usually sells off a bit. History reminds investors that August and September are traditionally unpleasant months for the market.

Earnings drag down Dow

It was a hectic week – major averages fell more than 2 percent and the Dow Jones industrial average dropped nearly 3 percent, with commodities around the world getting crushed and affecting quarterly earnings.

Gold prices tumbled to a five-year low and U.S. oil prices dipped below $50 a barrel for the first time in three months. The U.S. dollar hit its highest level in three months, prompting increases in oil and gold prices.

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