The DJIA today pared gains for the week as investors grow more nervous over Greece's debt talks and speculation that the Federal Reserve could increase interest rates in September.
The Dow slipped more than 140 points ahead of next week's critical Federal Open Market Committee meeting.
The largest drag on the S&P 500 was Exxon Mobil Corp. (NYSE: XOM), which saw its shares decline by 1.25%. Meanwhile, United Health GroupInc. (NYSE: UNH), the Dow's biggest decliner, slipped 1.4%.
The S&P 500 Volatility Index (VIX), the market's fear gauge, spiked more than 7%.
Why Is the Stock Market Down Today?
The Fed Factor: Domestic stocks slumped ahead of the U.S. Federal Reserve's Open Market Committee meeting next week. The event could offer some insight on when the Fed may increase interest rates. The FOMC meeting is the fourth of the year for the central bank. Investors are keeping a keen eye on the central bank and on Europe, where the IMF, EU, and ECB continue to attempt to bring a conclusion to Greece's debt problems. The continent needs to find a resolution soon and prevent a default to stave off similar actions by Portugal, Italy, and Spain.
Oil Gets Hit: Oil stocks slumped as the S&P 500 energy index (SPNY) slipped more than 1.2% on oversupply concerns and a report from oilfield services firm Baker Hughes Inc. (NYSE: BHI) that the U.S. rig count declined for a 27th straight week. WTI crude futures for July slipped 1.2% this morning to hit $60.66 per barrel. Brent oil fell 1.1% to hit $64.97 per barrel.
What to Watch Next Week: On Monday, investors will focus on domestic data such as monthly industrial production levels, the Housing Market Index, and the Empire State Manufacturing Survey.
Earnings to Watch: Companies reporting earnings Monday include Comverse Inc. (Nasdaq: CNSI), Motorcar Parts of America Inc. (Nasdaq: MPAA), Speed Commerce Inc. (Nasdaq: SPDC), and Walter Energy Inc. (NYSE: WLT).
Stocks to Watch No. 1, HAL: Shares of Halliburton Co.(NYSE: HAL) were down marginally this afternoon as oil prices fell. But it's been on a tear recently. The Halliburton stock price was beating the S&P 500 energy sector by 14.7% on Friday morning. And as the second-largest OFS company in the world, Halliburton is in the best position to soar this year as a wave of M&A washes over the industry. So, where is Halliburton stock heading in the second half of 2015? Find the answer, right here.
Stocks to Watch No. 2, WING: Shares of Wingstop Inc. (Nasdaq: WING) surged 60% in its debut on the public markets. The restaurant chain had priced its initial public offering of 5.8 million shares at $19 a share. The company found plenty of investors hungry for more profits from quick-service restaurant stocks. Over the past few years, restaurants ranging from Chipotle Mexican Grill Inc. (NYSE: CMG) to Shake Shack Inc. (NYSE: SHAK) have provided a boon to investors as they capitalize on evolving changes in U.S. diets and consumer habits.
Stocks to Watch No. 3, AAPL: Shares of Apple Inc. (Nasdaq: AAPL) were the biggest drag on the Nasdaq, slipping 1.1% on the day. Tech fanatics were disappointed by the company's software release at its Worldwide Developers Conference (WWDC) 2015. Tech bloggers have taken note that many of the new features touted by the tech giant this week were blatant rip-offs of product functions introduced by rivals Microsoft Corp. (Nasdaq: MSFT) and Google Inc. (Nasdaq: GOOG, GOOGL).
Stocks to Watch No. 4, TMUS: Shares of T-Mobile US Inc. (NYSE: TMUS) were up more than 2.3% on news that Dish Network (Nasdaq: DISH) is close to securing $10 billion and $15 billion in debt to purchase the company. The deal has been speculated for months after AT&T Corp. (NYSE: T) and DIRECTV Inc. (Nasdaq: DTV) announced a $48 billion merger.
Stocks to Watch No. 5, TWTR: Social micro-blogger Twitter Inc.'s (NYSE: TWTR) problems can't be summed up in 140 characters or less. The social media company's stock is hovering near a 52-week low, it's struggling to add new users, and its CEO Dick Costolo announced he will step down on July 1. The company has been struggling for months to convince investors that its growth strategy and Twitter stock are a buy. With 300 million users and a stock that continues to struggle, many are wondering if the company could be a takeover target for a tech giant like Google Inc. (Nasdaq: GOOG, GOOGL).
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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.