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For Jan. 20, 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: 15,766.74; -249.28; -1.56%
S&P 500: 1,859.33; -22.00; -1.17%
Nasdaq: 4,471.69; -5.26; -0.12%
The Dow Jones Industrial Average today (Wednesday) cratered another 249 points as crude oil prices slumped to lows not seen in more than 13 years and concerns about global economic growth weighed on investor sentiment. Earlier in the day, the Dow Jones fell as much as 566 points on weakening earnings reports. The CBOE Volatility Index (VIX) – Wall Street's fear gauge – jumped 6% on the day.
Shares of International Business Machines Corp. (NYSE: IBM) slumped 4.9% after reporting its 15th straight quarterly decline, while shares of Goldman Sachs Group Inc. (NYSE: GS) fell 1.8% after an underwhelming earnings report. In economic news, the December U.S. Consumer Price Index fell 0.1%. However, the index minus food and energy prices increased 0.1% and continues to increase on a month-over-month basis, according to Reuters. Core CPI increased 2.1% for 2015.
So, how far will the Dow fall in the weeks ahead? Money Morning Capital Wave Strategist Shah Gilani – who predicted this downturn in August – joined FOX Business' "Varney & Co." to offer his insight.
By the end of last year, 40% of S&P 500 companies traded below their 50-day averages. The markets had largely been buoyed by prominent technology stocks. But weakness is appearing in that sector as well, undercutting confidence as worries about China's economy rattle investors. Shares of Amazon.com Inc. (Nasdaq: AMZN), Facebook Inc. (Nasdaq: FB), and Alphabet Inc. (Nasdaq: GOOGL) all fell on the day.
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Top Stock Market News Today
- Stock Market Today: Nine of 10 major S&P sectors fell today, with energy stocks plunging by more than 3%. Financial stocks fell again as investors fled the sector over concerns related to earnings reports and exposure to oil prices and risky debts. Shares of both Bank of America Corp. (NYSE: BAC) and Citigroup Inc. (NYSE: C) fell more than 3.4%. Meanwhile, Wells Fargo & Co. (NYSE: WFC) fell 0.7%.
- Oil in Focus: Crude oil prices slumped again as concerns about Iran's oil supply topped expectations of an even greater glut on the global market. February WTI prices slipped 6.7% to close at $26.55 – the lowest since May 7, 2003. Meanwhile, Brent crude – priced in London – fell 3.1% to hit $27.88 per barrel. Shares of Chevron Corp. (NYSE: CVX) fell 3.1% on the day in heavy volumes, while Exxon Mobil Corp. (NYSE: XOM) slumped another 4.3%.
- On Tap Tomorrow: On Thursday, domestic markets will focus on weekly jobless claims and an update to the Philly Fed Manufacturing Activity Index. Oil prices will again be in focus when the U.S. Energy Information Administration reports weekly crude inventories. Companies set to report quarterly earnings include Starbucks Corp. (Nasdaq: SBUX), Verizon Communications Inc. (NYSE: VZ), American Express Co. (NYSE: AXP), Intuitive Surgical Inc. (Nasdaq: ISRG), Schlumberger Ltd. (NYSE: SLB), Union Pacific Corp. (NYSE: UNP), Bank of New York Mellon Corp. (NYSE: BK), and Southwest Airlines Co. (NYSE: LUV).
Stocks to Watch: RDS.A, SYNA, TWTR, NWS, NFLX
- Stocks to Watch No. 1, RDS.A: Shares of Royal Dutch Shell Plc. (NYSE ADR: A) hit a new 52-week intraday low after settling down 4.2% on the day. The global energy giant reported a sharp decline in profits as the global oil rout continues.
- Stocks to Watch No. 2, SYNA: Shares of Synaptics Inc. (Nasdaq: SYNA) surged more than 26% on rumors of a takeover deal. The news came not long after it received a downgrade from Oppenheimer.
- Stocks to Watch No. 3, TWTR: Shares of Twitter Inc. (NYSE: TWTR) bounced off near all-time lows to gain more than 4% on news that News Corp. (Nasdaq: NWS) has bought a stake in the microblogging company. The rumors have not been confirmed.
- Stocks to Watch No. 4, NFLX: Shares of Netflix Inc. (Nasdaq: NFLX) slipped 0.1% today, a victim of the broader sell-off in technology. After the bell yesterday, the streaming giant crushed earnings estimates and reported a massive surge in new subscriptions. The company said it now has 74.8 million subscribers and projects it will pick up another 6.1 million new customers by March. Recently, the firm announced it was expanding into another 130 countries and is currently exploring ways to branch into China. So, should you buy NFLX stock after its fourth-quarter earnings report? We answer that question, right here.
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.