Start the conversation
Comment on This Story
Or to contact Money Morning Customer Service, click here.
For Aug. 4, here's why the Dow Jones Industrial Average fell, plus the top stock market news and stocks to watch based on today's market moves...
How Did the Stock Market Do Today?
Dow Jones: 17,550.43; -47.77; -0.27%
S&P 500: 2,093.36; -4.68; -0.22%
Nasdaq: 5,105.55; -9.84; -0.19%
The DJIA today fell 47 points as investors parsed through earnings and data reports in preparation for Friday's jobs report.
Shares of Apple Inc. (Nasdaq: AAPL) hit a six-month low and continued to slump as the stock has fallen below two critical technical indicators. Apple stock fell another 3.3% as investors weigh concerns about the Chinese economy dragging down the tech giant's stock. According to research firm Canalys, Apple lost market share in the second quarter in the smartphone industry. Apple stock plunged below its 200-day moving average, suggesting the stock may have a ways more to decline.
Today, European Union regulators formally approved the $15 billion merger between Pfizer Inc. (NYSE: PFE) and Hospira Inc. (NYSE: HSP) after the former agreed to sell some of its drugs in order to alleviate concerns about competition. After the bell, Dreamworks Animation SKG Inc. (Nasdaq: DWA) and Walt Disney Co. (NYSE: DIS) will report earnings.
The S&P 500 Volatility Index (VIX), the market's fear gauge, gained 3% on the day.
Top Stock Market News Today
- Stock Market News: Apple's decline weighed down the S&P 500, while Atlanta Federal Reserve President Dennis Lockhart said in an interview that the Fed should consider raising interest rates in September. Oil prices slid back from six-month lows as oversupply fears continued to rattle the global markets. WTI crude futures for September gained 1.4% to hit $45.74 per barrel. Meanwhile, Brent oil prices added 1% to hit $49.99 per barrel.
- On Tap Wednesday: Tomorrow, investors will continue to monitor a busy economic calendar that includes factory orders for the month of June and Gallup's Economic Confidence Index. Companies reporting earnings tomorrow include CBS Corp. (NYSE: CBS), DISH Network Corp. (Nasdaq: DISH), Dominion Resources Inc. (NYSE: D), Fitbit Inc. (NYSE: FIT), Herbalife Ltd. (NYSE: HLF), Keurig Green Mountain Inc. (Nasdaq: GMCR), Priceline Group Inc. (Nasdaq: PCLN), Ralph Lauren Corp. (NYSE: RL), Tesla Motors Inc. (Nasdaq: TSLA), Time Warner Inc. (NYSE: TWX), Transocean Ltd. (NYSE: RIG), Valero Energy Partners LP (NYSE: VLP), and Wendy's Co. (Nasdaq: WEN).
Stocks to Watch: DB, BXLT, ALL, CYH, TWTR
- Stocks to Watch No. 1, DB: Shares of Deutsche Bank AG (USA) (NYSE: DB) were off on news the U.S. Department of Justice is investigating several billion dollars in trades by the bank on behalf of its Russian clients. Last month, the New York State Department of Financial Services (DFS) sought detailed information from Deutsche on possible money-laundering transactions by some of its clients in Russia that could exceed $6 billion. DB shares declined 2.5% on the day.
- Stocks to Watch No. 2, BXLT: Shares of Baxalta Inc. (NYSE: BXLT) were up more than 27% this morning on news Shire Plc. (Nasdaq ADR: SHPG) has pitched a hostile takeover bid worth nearly $30.6 billion. The deal would create one of the world's largest providers of medications for rare diseases. Shire stock slumped 5.4% on the day.
- Stocks to Watch No. 3, ALL: Shares of Allstate Corp. (NYSE: ALL) cratered 10.2% after the company fell well short of Wall Street earnings expectations. The insurance giant was one of today's worst performers on the S&P 500 after reporting per-share earnings of $0.63. Wall Street expected $0.97 per share. The company received downgrades from RBC Capital and Goldman Sachs Group Inc. (NYSE: GS) after saying that its car business saw more costly and severe claims last quarter. Allstate said its operating profits fell 41% compared to the same quarter in 2014.
- Stocks to Watch No. 4, CYH: Shares of Community Health Systems Inc. (NYSE: CYH) gained more than 1.4% on news the company beat Wall Street earnings estimates. The hospital operator also said it plans to spin-off Quorum Health Corp., an owner of 38 hospitals with headquarters in Tennessee. The firm said it beat consensus per-share earnings of $1.14.
- Stocks to Watch No. 5, TWTR: After shares of Twitter Inc. (NYSE: TWTR) fell roughly 5.6% on Monday, rumors of a possible takeover floated along Wall Street. Shares were up 0.8% yesterday after Twitter stock hit its lowest level since its debut as a public company. Potential buyers of the microblogging firm include Google Inc. (Nasdaq: GOOG, GOOGL) and Facebook (Nasdaq: FB). Additional names thrown into the mix are tech giants Microsoft Corp. (Nasdaq: MSFT) and Cisco Systems Inc. (Nasdaq: CSCO). For more insight on Twitter's potential takeover, visit here.
What Investors Must Know This Week
- The Top Three High-Return Investments to Buy Today
- Is Netflix Stock a Buy After Stock Split and Earnings Beat?
- The Real Impact of the Iran Nuclear Deal on U.S. Oil Prices
Stay informed on what's going on in the markets by following us on Twitter @moneymorning.
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.
