Stock market trends today, August 1, 2014: U.S. markets plummeted Thursday in a broad decline. The DJIA shed 317 points in a heavy sell-off. The S&P 500 fell below its 50-day moving average, erasing all of July's gains as concerns across global markets hammered stocks. The Chicago Board Options Exchange Volatility Index (VIX) jumped more than 27% to an intraday high of 17.11, its highest level since April.
This morning (Friday), the dollar hit a 10-month high against other global currencies while stocks around the world slumped. However, the U.S. unemployment rate rose to 6.2% on news that the economy gained only 209,000 jobs - falling under economist estimates of 230,000 new jobs during July and an unemployment rate of 6.0%.
Here's a roundup of the top stories affecting stock market news today:
Around the World: Concerns about bond defaults and access to capital dominated yesterday's trading session. In addition to Argentina's second bond default in 13 years, concerns in Europe reemerged after Portugal's largest bank, Banco Espirito Santo, saw its shares fall more than 40% due to investor fears that the firm will require government aid. New geopolitical tension with Russia emerged after the country banned soy and juice exports from Ukraine. Russia's government is also considering a ban on other European fruits and yogurts and U.S. poultry as the nation responds to increasing sanctions against its economy.
Vroom: Shares of Tesla Motors Inc. (Nasdaq: TSLA) were up roughly 1% after the company reported second-quarter earnings per share (EPS) of $0.11 on revenue of $857.5 million. During its quarterly reveal, the firm announced plans to manufacture more than 60,000 cars next year. It also announced it will construct a large battery plant - a Gigafactory - in a partnership with Panasonic Corporation (OTC: PCRFY) to help meet expected demand for its electric cars. Shares of Panasonic were slightly down in premarket hours.
Gaza Talks Collapse: Following yesterday's slew of geopolitical drama, Friday was supposed to offer a silver lining on the international front. U.S. Secretary of State John Kerry announced that Hamas and Israel had agreed to cease fighting for three days in order for both sides to negotiate a lasting peace agreement in the Gaza region. However, the ceasefire collapsed within just three hours after Israeli forces and Hamas fighters began firing rockets into each other's territory.
Whole Lot of Problems: Shares of Whole Foods Markets Inc. (Nasdaq: WFM) slipped more than 2% yesterday after the company slashed its 2014 revenue forecasts for the fourth time this year. Concerns about new competition and falling revenue has prompted the firm to engage in its first major marketing push this fall, which will include the expansion of home-delivery services to customers. The company plans to partner with third-party delivery firms to offer such services in 12 to 15 major U.S. markets.
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Today's Economic Calendar: Today's schedule includes the July U.S. unemployment rate report, the ISM Manufacturing Index, and the Challenger Job-Cut Report.
Whoops: After a stunning IPO that saw its stock double in just days, shares of GoPro Inc. slumped by more than 10% in post-market hours yesterday after the company reported its first quarterly earnings announcement as a public entity. GoPro announced that its second-quarter loss increased to $0.24 per share, or $19.8 million, up from $0.06 per share, or a loss of $5.1 million, in the same period last year.
Camera in the Back: This morning, Mobileye N.V., an Israeli automotive camera-manufacturer, will launch its initial public offering at $25 per share. Trading under on the NYSE under the ticker MBLY, the stock will run 35.6 million shares in the hopes of raising $1.02 billion.
Earnings Reports: Stay tuned for earnings reports from Chevron Corp. (NYSE: CVX), Procter & Gamble Co. (NYSE: PG), Enbridge Inc. (NYSE: ENB), Weyerhaeuser Co. (NYSE: WY), Clorox Co. (NYSE: CLX), and Burger King Worldwide Inc. (NYSE: BKW).
Full U.S. Economic Calendar August 1, 2014 (NYSE: all times EDT)
Challenger Job-Cut Report at 7:30 a.m.
Employment Situation at 8:30 a.m.
Personal Income and Outlays at 8:30 a.m.
PMI Manufacturing Index at 9:45 a.m.
Consumer Sentiment at 9:55 a.m.
ISM Manufacturing Index at 10 a.m.
Construction Spending at 10 a.m.
Global Manufacturing PMI at 11 a.m.
Left with little choice, the United States and European Union have imposed a new series of economic sanctions on Russia to express their disapproval over the country's continued aggression. But Russian President Vladimir Putin is playing a very long game, one in which he's prepared to see the Russian economy pay a very high price. That will mean consequences for investors the world over. Here's what the Russian sanctions mean for your money...
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.