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How Did the Stock Market Do Today?
S&P 500: 1,970.94; -64.79; -3.18%
Nasdaq: 4,706.04; -171.45; -3.52%
The Dow Jones Industrial Average today fell more than 3.1%, continuing the downtrend after Thursday's huge sell-off. The Dow slid 531 points, while the Nasdaq dipped another 3.5% as technology stocks slumped. Shares of Apple Inc. (Nasdaq: AAPL) continued to slide on China market woes, falling another 5.9% on the day. Apple stock is now officially in bear territory.
The company joins nine other Dow stocks that are now in bear territory: International Business Machines Corp. (NYSE: IBM), Proctor & Gamble Co. (NYSE: PG), Chevron Corp. (NYSE: CVX), Exxon Mobil Corp. (NYSE: XOM), Intel Corp. (Nasdaq: INTC), Caterpillar Inc. (NYSE: CAT), United Technologies Corp. (NYSE: UTX), Wal-Mart Stores Inc. (NYSE: WMT), and Du Pont Co. (NYSE: DD).
Technology was hit the hardest. Shares of Amazon.com Inc. (Nasdaq: AMZN) slumped another 4.1%, Microsoft Corp. (Nasdaq: MSFT) fell 5.7%, and Google Inc. (Nasdaq: GOOG, GOOGL) retreated 5.3% on the day. Meanwhile, Chinese e-commerce giant Alibaba Group Holding Ltd. (NYSE: BABA) fell to an all-time low as Chinese stocks continued to slide over concerns about the world's second-largest economy.
The S&P 500 Volatility Index (VIX), the market's fear gauge, surged more than 39% on the day.
Top Stock Market News Today
- Stock Market News:S. stock markets had their worst week since 2011, fueled by big declines in global markets like China and Germany. Today, the Shanghai Composite fell roughly 4.3%, while domestic oil prices fell below $40 to their lowest levels since 2009. Markets are increasingly concerned about the health of the Chinese economy, which saw its steepest decline in the nation's manufacturing sector since 2009.
- Oil Moves: Domestic WTI oil prices fell nearly 2.5% on the day, setting at $40.25 on the day. Prices slipped below $40 temporarily for the first time since 2009. Meanwhile, Brent oil prices dipped 1.1% to $46.65 per barrel. The decline of oil prices are a huge drag on multinational giants like Exxon Mobil Corp. (NYSE: XOM), down 3.4%, and Chevron Corp. (NYSE: CVX), down 4.4% today.
- On Tap Monday: On Monday, investors will await a speech by Atlanta Federal Reserve Bank President Dennis Lockhart on public pension reform and will look to the Chicago Fed Manufacturing Index for an update on domestic production. Companies reporting earnings include American Eagle Outfitters Inc. (NYSE: AEO), Hanger Inc. (NYSE: HGR), Rosetta Resources Inc. (Nasdaq: ROSE), and Premier Inc. (Nasdaq: PINC).
Stocks to Watch: DE, TFM, NFLX, TWTR, HPQ
- Stocks to Watch No. 1, DE: Shares of Deere & Co. (NYSE: DE) slipped 8.2% after the company beat Wall Street third-quarter profit and revenue expectations but fell much lower than previous forecasts were offered by the construction and farm equipment firm. The company also issued a weak earnings outlook as concerns over farming revenue and energy prices weighed down the stock.
- Stocks to Watch No. 2, TFM: Shares of The Fresh Market Inc. (Nasdaq: TFM) slumped more than 26% after the company reported a weak outlook for the year as it reported second-quarter results.
- Stocks to Watch No. 3, NFLX: Shares of Netflix Inc. (Nasdaq: NFLX) slipped another 7.6% on news U.S. states are considering taxes on video and live-streaming services, raising concerns about price competition and worries that more consumers might cut services. Media stocks continued to slide today after a massive sell-off on Thursday. Netflix stock has now fallen more than 13% since Aug. 6.
- Stocks to Watch No. 4, TWTR: Shares of Twitter Inc. (NYSE: TWTR) fell below its $26 IPO price for the first time ever. Twitter stock is now down 26% year to date and nearly 65% from the all-time high it hit in December 2013. For a breakdown of what's next for Twitter stock, visit here. The stock was off 0.5% on the day.
- Stocks to Watch No. 5, HPQ: Shares of Hewlett-Packard Co. (NYSE: HPQ) were up nearly 0.5% today, despite news the company reported weaker than expected earnings after the bell on Thursday. It was the fourth consecutive quarter of falling revenue as the company reported a decline in personal computer (PC) sales and falling demand from corporate customers. However, RBC Capital Markets said today that the stock has a nearly 30% upside.
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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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.