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At the closing bell, the Dow Jones Industrial Average dropped 98.89 points to finish at 16,268.99. The Nasdaq fell 60.69 points finish at 4,173.58, while the S&P 500 was down 13.06 points to settle at 1,852.56.
Here's a recap of other major events today.
- Positive Data This Morning: The U.S. Commerce Department reported that manufactured goods orders (long-lasting) rebounded in February. The data suggests that the economy is improving and that the two months of declines that hit were likely tied to poor winter weather. Long-lasting orders consist of goods like airplanes or microwaves that are expected to last for more than three years. The Commerce Department reported a 2.2% increase for the month.
- Candy Crushed: The IPO of Candy Crush Saga producer King Digital Entertainment PLC (NYSE: KING) was far from sweet. Shortly after the company rang the opening bell on the New York Stock Exchange, shares fell below their IPO level by more than 12%. The company and its early investors planned to sell 22.2 million shares in an effort to raise approximately $500 million. However, leading up to the IPO, many pundits were concerned about the company's long-term growth potential, given that King relies on one social media game (Candy Crush Saga) for 80% of its annual revenues. For a full update, see "King Digital (NYSE: KING) Stock Gets Crushed in Its Wall Street Debut" on Money Morning.
- Virtually Buying Everything: Shares of Facebook Inc. (Nasdaq: FB) slid by more than 5% after the company announced plans to purchase Oculus VR Inc., a maker of virtual-reality glasses and systems. Some investors got so hung up on the $2 billion deal that they started purchasing shares of another company sharing the same name. Shares of Oculus VisionTech Inc. (Nasdaq: OCLS), a medical products manufacturer, surged by more than 6%, forcing the company to issue a press release today that they are not the same firm purchased by Facebook.
- An Intense Showdown: A U.S. Senate committee announced that Congress will hold two hearings (its first on April 2) to investigate General Motors Co. (NYSE: GM) and the National Highway Traffic Safety Administration over recalls that have been linked to 12 deaths. Many speculate that General Motors allegedly failed to properly issue safety information and recall vehicles over faulty ignition switches. GM recalled more than 1.6 million vehicles in February, although some ignition problems date back as long as 2004.
- Another Cable Megadeal: According to Bloomberg, DISH Network Corp. (Nasdaq: DISH) CEO Charlie Ergen has contacted DirecTV (Nasdaq: DTV) CEO Mike White to propose a merger of the nation's two largest satellite cable companies. Shares of DISH jumped by more than 9% today on the news, while stock in DirecTV leaped by as much as 7.7%. The deal follows the recent proposed merger between the nation's two largest cable providers Comcast Corp. (Nasdaq: CMCSA) and Time Warner Cable Inc. (NYSE: TWC).
Wednesday's Top Three Profit Opportunities
- Do This Now: If you're a small-cap investor, you need a strategy. History is full of examples where small cap companies flamed out, leaving investors holding the bag for a stock that didn't quite sizzle. But if you need a strategy that will minimize risk and maximize your upside, look no further than Sid Riggs' strategy to help you win big in the months ahead.
- Penny Stock Riches: Investors who bought in on the top penny stocks last week brought home windfalls as high as 129% in just days. Here is a list of the top performers from last week, all of which still have plenty of room to run in the weeks ahead…
- Profit from the End of This Secret "Fix": For nearly 100 years, the London gold price fix has been widely used as an industry benchmark. But recent rumors of benchmark manipulation have suppressed gold prices for a decade. That means, very soon, the price could spike to incredible levels, and you'll need to make this play before it does…