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How Did the Stock Market Do Today?
S&P 500: 2,083.56; -16.28; -0.78%
Nasdaq: 5,056.44; -83.50; -1.62%
The Dow Jones Industrial Average today fell 120 points, while the Nasdaq slipped more than 1.6% after media and news stocks plunged as the latest round of quarterly earnings indicates more consumers are unplugging from cable. It was the sector's worst two-day performance since the financial crisis.
Shares of Viacom Inc. (Nasdaq: VIAB) slipped more than 14% on the day after the company reported a 44% decline in revenue for its film-entertainment division. Shares of New York Times Co. (NYSE: NYT) slipped nearly 3%, while Twenty-First Century Fox Inc. (NYSE: FOX) dipped more than 6.7% on the day. Meanwhile, shares of Netflix Inc. (Nasdaq: NFLX) gained 2.2% on the day as the company continues to benefit from consumers "pulling the plug."
Top Stock Market News Today
- Stock Market News: The number of Americans filing for unemployment benefits jumped more than expected last week. While media stocks earned most of the attention today, the healthcare sector was the worst performer, falling more than 1.8%. Shares of Biogen Inc. (Nasdaq: BIIB) continued their incredible slide, falling another 5.6% on the day.
- Oil Moves: Oil prices slipped again today to their lowest levels since March on concerns about oversupply and high inventory levels. WTI crude futures for September slipped 1.3% to hit $44.55 per barrel. Meanwhile, Brent oil prices dipped 0.5% to $49.34 per barrel. Despite falling prices, shares of Chevron Corp. (NYSE: CVX), Royal Dutch Shell Plc. (NYSE ADR: RDS.A), and Exxon Mobil Corp. (NYSE: XOM) all gained more than 1.2% on the day.
- On Tap Friday: Tomorrow, investors will focus extensively on the July employment report, which the U.S. Department of Labor plans to release at 8:30 a.m. The report will provide clarity on the current unemployment rate and might offer justification for the Federal Reserve to tighten monetary policy and raise interest rates in September. Companies reporting earnings Thursday include Groupon Inc. (Nasdaq: GRPN), Blue Nile Inc. (Nasdaq: NILE), CST Brands Inc. (NYSE: CST), E.W. Scripps Co. (NYSE: SSP), Harris Corp. (NYSE: HRS), JD.com Inc. (Nasdaq ADR: JD), Sotheby's (NYSE: BID), and Hershey Co. (NYSE: HSY).
Stocks to Watch: MDLZ, HLF, KORS, TSLA, PLNT
- Stocks to Watch No. 1, MDLZ: Shares of Mondelez International Inc. (Nasdaq: MDLZ) were up more than 1% on news that activist investor Bill Ackman and his firm Pershing Square Holdings Ltd. has disclosed a 7.5% stake in the company. The $5.5 billion stake is a likely bet that the snack-food manufacturer could be an acquisition target as the sector continues to consolidate.
- Stocks to Watch No. 2, HLF: Shares of Herbalife (NYSE: HLF) gained more than 17% after its second-quarter earnings beat expectations and the company raised its 2015 outlook. The company posted per-share earnings of $1.24 on roughly $1.16 billion in revenue. This topped Wall Street expectations of $1.11 per share on $1.15 billion in revenue.
- Stocks to Watch No. 3, KORS: Shares of Michael Kors Holdings Ltd. (NYSE: KORS) added nearly 11% after the company beat quarterly profit and sales estimates. The company slashed its outlook for the next quarter. The company's CEO said during a conference call that it saw strong sales growth in its footwear and accessories sales.
- Stocks to Watch No. 4, TSLA: Shares of Tesla Motors Inc. (Nasdaq: TSLA) slumped more than 8.8% after the company slashed its sales forecast for the second time in 2015. The company reported a smaller than expected second-quarter loss. Company CEO Elon Musk said he prefers providing "a great product" over "hitting quarterly numbers." It appears that traders disagree. The news comes on the same day Time magazine announced hackers found a way to take over a Tesla Model S vehicle and turn the car's engine off while someone is driving. The company will recall 1.4 million vehicles to address hacking threats.
- Stocks to Watch No. 5, PLNT: Shares of Planet Fitness Inc. (NYSE: PLNT) slipped nearly 1% during its first day of trading, below its initial public offering issue price of $16. The firm raised $216 million by selling 13.5 million shares.
What Investors Must Know This Week
- Why We're Still Bullish on Apple Stock (Nasdaq: AAPL)
- The Best Way to Add Gold to Your Portfolio Today
- The 4 Real Reasons Oil Prices Are Slipping – and How to Profit
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