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For Jan. 13, 2016, here's the top stock market news and stocks to watch based on today's market moves…
How Did the Stock Market Do Today?
Dow Jones: 16,151.41; -364.81; -2.21%
S&P 500: 1,890.28; -48.40; -2.50%
Nasdaq: 4,526.07; -159.85; -3.41%
The Dow Jones Industrial Average today (Wednesday) cratered more than 364 points as oil prices pushed downward again and technology stocks faltered. Shares of five companies – Home Depot Inc. (NYSE: HD), Goldman Sachs Group Inc. (NYSE: GS), Boeing Co. (NYSE: BA), Walt Disney Co. (NYSE: DIS), and UnitedHealth Group Inc. (NYSE: UNH) – accounted for half of the Dow's drop today. Meanwhile, the S&P 500 slumped 2.5% and crashed through the important mental barrier of 1,900 for the first time since October.
On the economic front, two prominent economists – Boston Fed President Eric Rosengren and former U.S. Treasury Secretary Larry Summers – raised concerns about the U.S. Federal Reserve's plans to tighten monetary policy repeatedly in 2016. Both said any plan for four quarter-point interest rate hikes could be stonewalled by a sputtering U.S. economy. Meanwhile, according to the monthly Beige Book, U.S. economic activity expanded in nine of the nation's 12 districts. The central bank said broader U.S. economic growth was weighed down by a stronger dollar and falling energy prices.
Top Stock Market News Today
- Stock Market Today: All 10 major S&P sectors fell today, with consumer discretionary stocks leading the sharpest decline. Shares of Amazon.com Inc. (Nasdaq: AMZN) pulled the sector down after falling 5.8%; however, no individual event accounted for the sharp decline in the tech stock. Meanwhile, shares of Netflix Inc. (Nasdaq: NFLX) fell 8.6%, while Chipotle Mexican Grill Inc. (NYSE: CMG) reversed losses and added 6%.
- Oil Moves Higher: U.S. oil prices again slumped through the $30 barrier during intraday trading before settling higher for the first time in eight sessions. February's WTI prices gained 0.1% to settle at $30.48 per barrel. Meanwhile, Brent oil crude – priced in London – fell 1.8% to hit $30.31. Shares of Exxon Mobil Corp. (NYSE: XOM) weathered the decline in crude prices, gaining 0.6% on the day. However, Chevron Corp. (NYSE: CVX) fell 1%. Master limited partnerships cratered on the day, with Targa Resources Corp. (NYSE: TRGP) leading the decline by losing 21.5% today.
- SOTU Address: On Tuesday night, President Barack Obama delivered his final, 58-minute-and-40-second-long State of the Union address – the 16th longest in history. During his speech, he devoted nearly six minutes to claims that the U.S. economy has become more robust than ever under his tenure. But we're not buying it. Here's why.
- On Tap Tomorrow: On Thursday, a busy economic calendar features an update on weekly jobless claims, monthly trade data, and a speech from St. Louis Fed Reserve Bank President James Bullard. Companies set to report quarterly earnings include JPMorgan Chase & Co. (NYSE: JPM), Intel Corp. (Nasdaq: INTC), and Shaw Communications Inc. (NYSE: SJR).
Stocks to Watch: CYBR, CHKP, CSX, TTNP, GM, F, ETSY, AMZN
- Stocks to Watch No. 1, CYBR: Shares of Cyberark Software Ltd. (Nasdaq: CYBR) surged 19.6% on news Check Point Software Technologies Ltd. (Nasdaq: CHKP) is in discussions to purchase the company. Cyberark shares were traded on incredibly high volumes, 774% more than the average day.
- Stocks to Watch No. 2, CSX: Shares of CSX Corp. (Nasdaq: CSX) fell 5.7% after the company reported fiscal fourth-quarter earnings of $0.48 per share on top of $2.8 billion in revenue. The company fell short on bottom-line revenue due to falling shipment volumes and a struggling energy sector. The firm's results could be a very troubling proxy for the transportation sector heading deeper into earnings season.
- Stocks to Watch No. 3, TTNP: Shares of Titan Pharmaceuticals Inc. (Nasdaq: TTNP) jumped more than 13.6% after a U.S. Food and Drug Administration advisory panel – the Psychopharmacologic Drugs Advisory Committee – recommended the regulatory approval of an implant to treat opioid addiction.
- Stocks to Watch No. 4, GM: Shares of General Motors Co. (NYSE: GM) gained 0.6% after the company hiked its 2016 profit outlook and announced another $4 billion to its stock buyback plans. The news sent shares of Ford Motor Co. (NYSE: F) down more than 5%.
- Stocks to Watch No. 5, ETSY: Shares of Etsy Inc. (Nasdaq: ETSY) hit another all-time intraday low of $6.76 before settling down 5.4%. The technology company continues to remain under pressure from competitors like Amazon.com Inc. (Nasdaq: AMZN). Many television talking heads have speculated that the new low presents a buying opportunity, but don't take their advice. That's because there are two reasons this stock will not recover in 2016.
What Investors Must Know This Week
- Where We'll Find Our Biggest Profits This Year
- What a Chinese Stock Market Crash Means for Investors
- Your "Buy List" to Profit from Volatility in 2016
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.