The Dow Jones Industrial Average fell 117 points today on news that oil prices fell to six-year lows as concerns about oversupply rattled trader sentiment. Shares of Exxon Mobil Corp. (NYSE: XOM) and Chevron Corp. (NYSE: CVX) were both off roughly 2.6% and were the biggest drags on the Dow Jones. Shares of Kinder Morgan Inc. (NYSE: KMI) fell another 2.4%.
The downturn in energy prices was positive for the transportation sector, specifically airline stocks. The S&P 1500 airlines index (.SPCOMALI) jumped 2% to its highest level since January 2015. Shares of Delta Air Lines Inc. (NYSE: DAL) gained more than 4%, while United Continental Holdings Inc. (NYSE: UAL) added 2.7%.
Top Stock Market News Today
Stock Market News: All 10 S&P sectors were negative Monday, with energy stocks and utilities stocks hit hardest. Materials stocks slipped 1.9% overall, the biggest drop in roughly three weeks. High-volume decliners Dow Chemical Co. (NYSE: DOW) and DuPont Co. (NYSE: DD) slipped 2.4% and 0.96%, respectively.
Fed Focus: Louis Federal Reserve President James Bullard said that poor economic forecasting by the central bank has led policy makers to keep interest rates low for too long. Investors are anticipating next week's meeting of the Fed Open Market Committee, at which there is now a 79% chance the central bank will hike rates for the first time since 2006, according to the CME FedWatch.
Energy in Focus:Oil prices slipped on concerns of a rising U.S. dollar and news that OPEC is not prepared to cut production levels as Iranian crude comes back to market. January WTI prices fell 5.8% to hit $37.64 per barrel. Meanwhile, Brent oil crude - priced in London - slipped 5.3% to hit $40.72. Find out more on why WTI crude oil pricesare down to their lowest level since February 2009 and why oil stocks fell more than 4.8% on the day right here.
On Tap Tomorrow: On Tuesday, keep an eye out for the NFIB Small Business Optimism Index and the JOLTS report. Companies set to report quarterly earnings tomorrow include Costco Wholesale Corp. (Nasdaq: COST), AutoZone Inc. (NYSE: AZO), Toll Brothers Inc. (NYSE: TOL), Krispy Kreme Doughnuts (NYSE: KKD), Smith & Wesson Holding Corp. (Nasdaq: SWHC), Conn's Inc. (Nasdaq: CONN), ABM Industries Inc. (NYSE: ABM), and John Wiley & Sons Inc. (NYSE: A).
Stocks to Watch: GPRO, SWHC, RGR, PBY, GMCR, SPLS, ODP
Stocks to Watch No. 1, GPRO: Shares of GoPro Inc. (Nasdaq: GPRO) dropped 2.7% and hit a new all-time intraday low after JPMorgan Chase & Co. (NYSE: JPM) cut its price forecast from $55 to $45. The stock likely has more to fall; as Money Morning Chief Investment Strategist Keith Fitz-Gerald explains, the stock is worth no more than $15 per share.
Stocks to Watch No. 2, RGR: Publicly traded gun manufacturers had an historic day in the markets, a day after President Barack Obama called for increased gun control during a prime-time address from the Oval Office last night. Shares of Smith & Wesson Holding Corp. (Nasdaq: SWHC) and Sturm Ruger & Co. (NYSE: RGR) gained 7.6% and 5.8%, respectively.
Stocks to Watch No. 3, PBY: Shares of Pep Boys-Manny Moe and Jack (NYSE: PBY) added 2.3% on news that activist investor Carl Icahn has disclosed a 12.12% stake in the automotive repair and retail company. Icahn is urging Pep Boys to sell itself to Auto Plus, a company owned by his holding company Icahn Enterprises LP (Nasdaq: IEP).
Stocks to Watch No. 4, SPLS: Shares of Office Depot Inc. (Nasdaq: ODP) fell 15.75% on news that the Federal Trade Commission has sued to block the company's merger with Staples Inc. (Nasdaq: SPLS). Shares of Staples fell 13.75%.
Stocks to Watch No. 5, GMCR: Shares of Keurig Green Mountain Inc. (Nasdaq: GMCR) surged nearly 72% after the company agreed to a deal that will take the coffee-machine manufacturer private. The company will be purchased by private holding firm JAB Holding Co. for $92 per share, or $14 billion. Despite the sale premium, the company is selling at a 41% discount to its all-time record closing price. The sale is seen by many as a solution to its cratering stock price in 2015.
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.
