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For Feb. 9, 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: 16,014.38; -12.67; -0.08%
S&P 500: 1,852.21; -1.23; -0.07%
Nasdaq: 4,268.76; -14.99; -0.35%
The Dow Jones Industrial Average today (Tuesday) lost 12 points as oil prices fell again on supply concerns and traders prepared for U.S. Federal Reserve Chairwoman Janet Yellen's appearance before Congress on Wednesday. The markets received a late-session boost from biotech stocks after the Nasdaq Biotech Index added 0.1%. Shares of Gilead Sciences Inc. (Nasdaq: GILD) added 2.3%, while Allergan Plc. (NYSE: AGN) gained 2.3%.
The CBOE Volatility Index (VIX) – Wall Street's fear gauge – was up 1.9%.
On the economic front, the U.S. Commerce Department announced domestic wholesale inventories fell for the third straight month in December. According to the agency's report, U.S. companies aimed to reduce unsold products, news that could signal another downward revision of fourth-quarter economic growth. Meanwhile, the JOLTS survey indicated job openings increased during the month of December.
Top Stock Market News Today
- Stock Market Today: Six of the 10 major S&P sectors declined, with financial stocks and technology stocks raising new alarms for investors. Shares of JPMorgan Chase & Co. (NYSE: JPM) and Citigroup Inc. (NYSE: C) both slipped more than 0.5%. Meanwhile, shares of Facebook Inc. (Nasdaq: FB), Alphabet Inc. (Nasdaq: GOOGL), and Microsoft Corp. (Nasdaq: MSFT) were all down during today's trading session.
- Oil Prices: Crude oil prices fell as investors anticipate a large buildup in domestic crude inventories. WTI crude oil – priced in New York – slipped 5.9% to hit $27.94 per barrel. Meanwhile, Brent crude – priced in London – dipped 7.8% to hit $30.32 per barrel. Shares of Exxon Mobil Corp. (NYSE: XOM) dipped 0.4%, while shares of Chevron Corp. (NYSE: CVX) plunged 3.6%.
- On Tap Tomorrow: On Wednesday, Federal Reserve Chairwoman Janet Yellen will present the central bank's semi-annual monetary report to the House Financial Services Committee. Later in the morning, expect the monthly petroleum status report from the U.S. Energy Information Administration. Companies set to report quarterly earnings include Tesla Motors Inc. (Nasdaq: TSLA), Twitter Inc. (NYSE: TWTR), Cisco Systems Inc. (Nasdaq: CSCO), Whole Foods Market Inc. (Nasdaq: WFM), Zynga Inc. (Nasdaq: ZNGA), Expedia Inc. (Nasdaq: EXPE), Humana Inc. (NYSE: HUM), Time Warner Inc. (NYSE: TWX), and Flowers Foods Inc. (NYSE: FLO).
Stocks to Watch: TSLA, BCS, DB, VIAB, SHLD, KO
- Stocks to Watch No. 1, TSLA: Shares of Tesla Motors Inc. (Nasdaq: TSLA) were up 0.2% after the stock fell more than 9% yesterday. The uptick comes after automotive analysts at Barclays Plc. (NYSE ADR: BCS) forecast the company's first-quarter vehicle production will come in at 14,200 units. That's down from 17,400 in the previous quarter. The stock may be down 25% this year, but we're still very bullish on TSLA stock. Here's why.
- Stocks to Watch No. 2, DB: Shares of Deutsche Bank AG (NYSE: DB) fell 1% as the company's co-CEO John Cryan attempts to reassure global investors that the German bank is stable. The markets continue to worry about the firm's exposure to the global oil downturn and cash flow woes. Deutsche Bank is off more than 37% over the last year.
- Stocks to Watch No. 3, VIAB: Shares of Viacom Inc. (Nasdaq: VIAB) slumped 21.5% and experienced its worst one-day downturn in seven years. The company's new CEO Philippe Dauman lashed out against "naysayers" whom he claims are distorting and obscuring the company's outlook.
- Stocks to Watch No. 4, SHLD: Shares of Sears Holding Corp. (Nasdaq: SHLD) were off 8.9% after the company warned its fourth-quarter revenue will fall short of expectations. The company announced it is expediting a number of store closures and enacting larger cost cuts in order to shore up its balance sheet.
- Stocks to Watch No. 5, KO: Shares of The Coca-Cola Co. (NYSE: KO) gained 1.6% after the company beat Q4 earnings by a penny. Wall Street expected the soda manufacturer to report an earnings per share (EPS) of $0.37 on top of $9.9 billion in revenue. Shares have been under pressure as a stronger U.S. dollar and Latin American currency weakness hinder expectations. The global beverage giant earns more than half of its revenue from markets outside of North America.
What Investors Must Know This Week
- The $600 Million Signal That Oil Prices Are About to Rise
- How to Prepare for a Global Recession in 2016
- This Easy Investing Strategy Can Lead to 2,426% Profits
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.