Stock market today, July 21, 2014: U.S. stock markets slumped on Monday, as military action continues in the Gaza Strip and geopolitical tensions remain high in Ukraine. The United States and European allies have strengthened economic sanctions against Russian interests and are threatening further action against Vladimir Putin if he doesn't pull support from pro-Russian militants in Eastern Ukraine.
Here's the scorecard from today's trading session:
Dow: 17,051.73, -48.45 (-0.28%)
Nasdaq: 4,424.70, -7.44 (-0.17%)
S&P 500: 1,973.63, -4.59 (-0.23%)
And here are the top stories from U.S. stock markets today:
- The Death Blow: Shares of Herbalife Ltd. (NYSE: HLF) cratered more than 11% today on news that activist investor Bill Ackman announced plans on CNBC to deliver a "deathblow" to the health marketer. In what he calls the most important presentation of his career, Ackman plans to argue tomorrow morning that Herbalife will collapse due to its structure and marketing practices. In past statements, Ackman has accused the company of being a "Ponzi scheme." Be sure to check back on the presentation tomorrow morning.
- Earnings Slumps: Shares of BB&T Corp. (NYSE: BBT) fell more than 3.5% on news that the company missed analyst expectations for the second quarter, a downturn fueled by reduced mortgage business. Shares of Hasbro Inc. (NYSE: HAS) fell more than 2.5% after the company announced rising sales and declining profits. Hasbro continues to struggle due to major changes in the toy industry as young customers migrate to electronics. Finally, Six Flags Entertainment Corp. (NYSE: SIX) announced stronger profits, but weaker sales in the spring.
- Return of Oilfield Services: In a boost to the oilfield services company, the continent's largest provider Halliburton Co. (NYSE: HAL) announced plans to add new fracking equipment and employees to meet increasing demand across the country. Shares of Halliburton were up nearly 2% this morning after the company also announced an increase of its pending share buyback program from $5 billion to $6 billion. According to second-quarter figures, Halliburton's second-quarter margins in North America are handily beating competitors Baker Hughes Inc. (NYSE: BHI) and Schlumberger Ltd. (NYSE: SLB).
- Camera Crazy: Shares of GoPro Inc. (Nasdaq: GPRO) were up more than 2.5%, even though a number of Street analysts raised concerns about the trajectory of the company's stock surge. Consensus views like the company, but stated there is "limited upside" to current prices.
- Cut for Gains: Shares of Allergan Inc. (NYSE: AGN) rose more than 2% on news that the company beat Wall Street earnings estimates. The company also plans to slash 13% of its workforce, or 1,500 jobs, in a restructuring deal later this year.
Now our experts share some of the most important investment moves to make based on today's market trading - for Money Morning Members only:
- A Clear Way to Profit from a Graying Population: The Baby Boom generation, which includes everyone born from 1946 through 1964, is now entering retirement age (65) at a rate of 10,000 per day. Naturally, the more seniors there are, the more demand there will be on the medical community for better and safer therapies, and, more ways to profit on this trend...
- Don't Hesitate on This Industry Boom That's Already Here: If you follow the headlines, you'd think the last place to invest your hard-earned money is in healthcare. But here's the thing. As technology investors, our job is to look beyond the politics of the moment and take a look at what others may be missing. Turns out, if you picked the right healthcare investment over the last two years, you would have beaten the S&P 500's returns by more than 50%. And here's why...
- Act on This Massive Profit "Spark" Ahead of the Big Boys: It's easy to see why investors pile into a company's stock on the heels of highly successful products, technologies, or services. For small caps, finding the right leader can prove a more critical "spark" to major profits. This is why you should follow Money Morning Small-Cap Investing Specialist Sig Riggs' advice and use these three steps to make big gains...
About the Author
Garrett Baldwin is a globally recognized research economist, financial writer, consultant, and political risk analyst with decades of trading experience and degrees in economics, cybersecurity, and business from Johns Hopkins, Purdue, Indiana University, and Northwestern.