Stocks Pain Concern: Wall Street

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Investors are worried about the volatility in the stock market lately and their desire for a quiet market in the coming week of which may not go as expected. The reasons that quickened the Dow and S&P 500 to perform to their worst since the beginning of May 2012 have not been overcome yet. The retreat seem to have a higher chance as the main factors that has drove the market to high records, however this retreats that are from the emerging markets are not providing therequired sufficient support.

In next week it has been reported that of the S&P 500 components more than 80 of them will gain earnings. However the chief investment officer of a Boston based asset management john Chisholm warned. He said 'Bad news in any area of the globe is bound to make sentiment less positive in others. This isn't an issue of contagion, but there will be influence which has an emerging market equity fund with $1.2 billion in assets. 'There's plenty more instability ahead.'

Some countries such as South Africa and Turkey are in the run to strengthen their currencies however the trends for the assets as remained negative. This has also affected the U.S stock market even though their stock decline was not that much when the emerging market was swoon.

The CBOE volatility index as not since October traded above 19 hence remaining below a long term average of 20. Their VIC rose 34.2 percent in January where they ended the month at 18.41 from their last year's performance of 13.72.

Dow and S&P 500 in January had their worst percentage decline ever since may 2012 where Dow fell 5.3 percent and S&P 500 lost 3.6 percent. Also Nasdap was no exception it had its month worst performance since October 2012 it fell 1.7 percent.

Of those markets expected to report earnings next week with large emerging market exposure is general motors whose shares dropped 11.7 percent in January. As well Yum Brands Inc is expected to report earnings; it gets almost half of its sales from Brazil Russia India and china. Yum in January lost 11.2 percent.

Since Fed said that by December it was going to cut back its stimulus, stocks and shares of those companies that are international exposed have underperformed S&P 500.

Apple Inc has been affected by the sluggish demand in china with the company reporting worst iphone sales forcing Wal-Mart stores to close down.