Why the Dow Jones Today Fell Triple Digits Again

Dow Jones Today, Oct. 13, 2014: The Dow Jones Industrial Average dropped 223 points Monday, shedding earlier gains as investors continued to express concerns about global uncertainty. The markets had previously moved into the green after Federal Reserve Bank of Chicago president Charles Evans announced today that the "biggest risk" to the global recovery was premature rate hikes.

The S&P 500 Index fell below the 1,900 level today ahead of an important earnings week. The S&P 500 Volatility Index (VIX) jumped another 15% on the day. Gold prices climbed to a four-week high on a weaker dollar and increasing geopolitical uncertainty. Energy stocks led the sharp afternoon slide.

Here's the scorecard from today's trading session:

Dow: 16,321.07, -223.03 (-1.35%)
S&P 500: 1,874.74, -31.39 (-1.65%)
Nasdaq: 4,213.66, -62.58 (-1.46%)

Now, here's a breakdown of today's other top stories and stock performances:

  • Outbreak Profits: Manufacturers of safety suits and equipment continue to see their shares soar as fears of a deadly Ebola outbreak sweep the world. Shares of HAZMAT-suit manufacturer Lakeland Industries Inc. (Nasdaq: LAKE) were up 47% today, while face-mask producer Alpha Pro Tech Ltd. (NYSE: APT) also saw shares soar another 35% today. Alpha Pro shares are up more than 250% on the year. As the Ebola epidemic rages, so-called "Ebola stocks" are surging as biotechs race to find a cure - but here's why investors should steer clear of overhyped plays.
  • dow jones todayGPRO at Your Own Risk: Shares of GoPro Inc. (Nasdaq: GPRO) slipped nearly 10% after a report by Yahoo! Sports suggested that one of its camera models may have been responsible for the traumatic head injury suffered by Formula 1 racer Michael Schumacher. The report indicates that Schumacher was injured in a skiing accident and that while his helmet may have sustained serious damage, the camera remained intact. Schumacher is slowly emerging from a medically induced coma. Here's Money Morning Chief Investment Strategist Keith Fitz-Gerald on why GPRO stock is one to avoid...

  • Look Who's in Charge: Shares of J.C. Penney Co. Inc. (NYSE: JCP) slipped more than 1% this afternoon, despite Wall Street optimism that the company's new chief executive officer will be The Home Depot Inc. (NYSE: HD) executive Marvin Ellison. Ellison will replace current J.C. Penney CEO Myron "Mike" Ullman III, who replaced former Apple Inc. (Nasdaq: AAPL) executive Ron Johnson. Shares of Home Depot slipped more than 2% on the day. J.C. Penney may be in "recovery mode," but until it addresses one glaring number, it's still not a "Buy"...
  • Backing Out: For the third time in three years, a suitor has walked away after attempts to purchase U.S. telecom gem T-Mobile U.S. Inc. (NYSE: TMUS). This afternoon, reports stated that France's Iliad SA (OTCMKTS: ILIAY) has abandoned its attempt to purchase T-Mobile US after the target's majority shareholder Deutsche Telekom AG (OTCMKTS ADR: DTEGY) showed resistance to the deal. Shares of T-Mobile slipped by 2.5% on the news. Meanwhile, shares of Iliad were up more than 14% on the day.
  • Merger Mania: Shares of Atlas Pipeline Partners LP (NYSE: APL) and its cousin Atlas Energy LP (NYSE: ATLS) soared 3.5% and 14% intraday, respectively, on news that the company would be acquired. According to reports, both respective companies will be purchased by Targa Resources Partners LP (NYSE: NGLS) and Targa Resources Corp. (NYSE: TRGP) in two deals worth roughly $7.7 billion.

Now our experts share some of the most important investment moves to make based on today's market trading - for Money Morning Members only:

  • The Profit Opportunity in Hong Kong's Unrest: Most investors haven't got a clue about what Hong Kong's riots represent, let alone the investment potential that's being unleashed there. As a result, they're going to miss out on some really terrific profit opportunities. But before we get to the best way to play this, understanding what's driving the unrest is key...
  • The European Crisis Is Going Global - and We're Along for the Ride: Recently one European leader offered a unique response for dealing with the financial crisis and debt bubble. On the surface, it appears a sound approach. But when you scratch beneath, it turns out just the opposite is true. Developed economies would do well to consider the true state of this country's example of a "model" recovery before an even more catastrophic future arrives, and erupts...
  • The Best Way to Profit from Crude Oil Prices Right Now: In today's environment, picking winning oil stocks is more about where a company drills, how it manages its assets and operations, and the broader flow of supply and demand. In this case, it's all about selecting the right target - companies that are built to weather the inevitable dips in the price of crude. And there are plenty of them out there...

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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.

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