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Dow Jones Today, Oct. 7, 2014: The Dow Jones Industrial Average slumped heavily Tuesday after renewed concerns about global growth reemerged and investors took money off the table ahead of earnings season.
This afternoon the International Monetary Fund announced it had slashed its global economic growth forecasts for the third time this year. In a report released today, the IMF said that 2014 global growth will come in around 3.3%, while GDP growth in 2015 will be 3.8%. The D.C.-based agency said that weaker growth is being experienced in large emerging markets like Russia and Brazil, as well as all across the Eurozone.
The S&P Volatility Index (VIX) soared more than 10% on the day.
Let's take a look at today's scorecard.
Dow: 16,719.33, -272.58 (-1.60%)
S&P 500: 1,935.09, -29.73 (-1.51%)
Nasdaq: 4,385.20, -69.60 (-1.56%)
Here's a breakdown of today's other top stories and stock performances:
- Slumping Profits: Shares of SodaStream International Inc. (Nasdaq: SODA) fell 22% Tuesday after the company slashed its quarterly sales expectations. SodaStream Chief Executive Officer Daniel Birnbaum announced he was "very disappointed in our recent performance." Bimbaurn blamed the forecast change on slumping U.S. demand due to a lack of growth in the health and wellness markets.
- The Next Court Battle: Social networking giant Twitter Inc. (NYSE: TWTR) has sued the Federal Bureau of Investigation and the Department of Justice in a federal court. In the suit, Twitter is demanding that the government release more information about any surveillance programs that target their users. The announcement comes after both Google Inc. (Nasdaq: GOOG, GOOGL), Facebook Inc. (Nasdaq: FB), and several other tech firms reached a settlement to address concerns over government surveillance of consumer data.
- Probe Problems: Shares of Herbalife Ltd. (NYSE: HLF) slipped more than 3% this afternoon after several company executives said that they are all but certain that the Federal Trade Commission will not shut down the company over a probe into its marketing practices. The probe was opened on suspicion that the company was operating a "pyramid scheme," a charge long argued by hedge fund manager Bill Ackman.
- Commodity Slump: The ongoing downturn of commodity prices is starting to affect manufacturing companies on weakened demand. Shares of Agco Corp. (NYSE: AGCO) dropped more than 10%, reaching a 52-week low, on news that the agricultural-equipment firm slashed its 2014 profit outlook.
- Cutting Benefits: The world's largest private sector employer, Wal-Mart Stores Inc. (NYSE: WMT), announced that it has slashed plans to provide benefits to some of its U.S. part-time workers thanks to rising healthcare costs. Wal-Mart said it will end health benefits for workers who put in less than 30 hours per week. The announcement will affect roughly 30,000 employees.
Now our experts share some of the most important investment moves to make based on today's market trading – for Money Morning Members only:
About the Author
Garrett Baldwin is a globally recognized research economist, financial writer, and consultant with degrees from Northwestern, Johns Hopkins, Purdue, and Indiana University. He is a seasoned financial and political risk analyst, with a focus on stocks, hedge funds, private equity, blockchain, and housing policy. He has conducted risk assessment projects for clients in 27 countries, and consulted on policy and financial operations for some of the nation's largest financial institutions, including a $1.5 trillion credit fund, a $43 billion credit and auto loan giant, as well as two of the largest Wall Street banks by assets under management.
Garrett joined Money Map Press as an economist and researcher in 2011, specializing in alternative strategies with an emphasis on fundamental and technical analysis.