Sept. 20 - Summary: Fed official comments sink stocks in heavy volume; Blackberry stock tanks after a bruising warning, job cuts; new IPhone's big launch day. Bobbi Rebell reports.
The worst day for the S&P 500 in three weeks - the major indices closed out Friday dramatically lower after comments from a senior Federal Reserve official got investors worried that a scale back in bond buying could come as early as October. Fred Dickson of D.A. Davidson SOUNDBITE: FRED DICKSON, CHIEF INVESTMENT STRATEGIST, D.A. DAVIDSON (ENGLISH) SAYING: "I think that there is some communication, misguided communication links within Fed membership. I hope the market at this point kind of sits back and doesn't get jumpy on individual quotes and kind of interprets what the Fed is saying, as you know, the data wasn't quite as good as what we thought it would be. Let's pause, lets see the flow before we come to conclusions." For the week, both the Dow and the Nasdaq posted gains. And in Europe - down arrows for the day on the major country indexes - though they did end higher for the week. Yet another black eye for BlackBerry - BlackBerry warning of a big second quarter loss - a 4,500 job cuts. That's more than a third of its workforce. Shareholders taking a beating - the stock down more than 20 percent at one point on Friday. Analyst Colin Gillis saying " The company has sailed off a cliff. Who wants to commit to a platform that could possibly be shut down." Rival Apple stock closed down - despite excitement over the launch of their new iPhone 5S and 5C - as pictures of long lines like these circulated around the world. Analysts said first weekend sales would likely be better than sales of the previous generation. And Darden restaurants left a bad taste for investors - shares were down sharply after the operator Olive Garden and Red Lobster reported dismal quarterly results. It blamed the bad economy - higher taxes and tough competition from rivals like Panera Bread and Chipotle Mexican Grill.