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Dow Jones Industrial Average News, 5/4/16 – In recent days, investors' sentiments have been rattled by weakness in China's manufacturing sector, a surprise cut in interest rates by the Reserve Bank of Australia, and a downgrade in European growth expectations.
And today, the United States saw the slowest monthly private-sector job growth in three months, raising concerns about the health of the economy after last week's dismal GDP report. Combine this with the ongoing manufacturing recession that is plaguing the United State, and it's hard to get a clear picture of where the markets are heading next.
Here's what else you need to know about the markets on May 4, 2016.
We're Seeking Maximum Profit from These "IPO Icebreakers" – 2016 has been a rough year for IPO investors, but that's about to change in the most lucrative way possible. Here's what you need to know to get ready for the turnaround.
First up, check out the results for the Dow Jones, S&P 500, and Nasdaq:
Dow Jones: 17,651.26; -99.65; -0.56%
S&P 500: 2,051.12; -12.25; -0.59%
Nasdaq: 4,725.64; -37.58; -0.79%
Now, here's the top stock market news today…
DJIA Today: Energy, Healthcare Stocks Pull Markets Lower on Wednesday
Shares of Tesla Motors Inc. (Nasdaq: TSLA) were off more than 4% as the company prepares to report its first-quarter earnings after the bell today. The report comes as the firm announces two top executives are departing the company ahead of its manufacturing build of the Tesla Model 3. Keep an eye out for earnings today, as sales are expected to have increased by roughly 50% over the quarter. [Update: TSLA stock added 3.7% after its earnings report.]
It was another brutal day for biotech stocks, with the iShares Nasdaq Biotechnology ETF (Nasdaq: IBB) falling roughly 3%. This is the ETF's seventh negative day in eight days. Shares of Gilead Sciences Inc. (Nasdaq: GILD) fell 1.8%, while Shire Plc. (Nasdaq ADR: SHPG) lost more than 4.1%. Finally, Valeant Pharmaceuticals International Inc. (NYSE: VRX) shed another 2.8% on news that the company may revise its guidance downward by its new management, according to BMO Capital. There are still plenty of other reasons to be bearish about VRX stock.
WTI crude oil prices rose Wednesday despite news of an unexpected build in domestic inventories. According to U.S. government data, domestic crude increased by 2.8 million barrels last week. The news overshadowed evacuations in oil-rich Alberta, Canada, where wildfires threaten production. Shares of Suncor Energy Inc. (NYSE: SU), which maintains significant production in the region, declined by 3.5%.
Brent crude prices were off more than 0.5% and continued their slide since Friday due to a combination of a stronger U.S. dollar, weak economic data in China, and concerns about the upcoming meeting among OPEC producers. Here's what you need to know right now about oil prices.
In terms of energy stocks, shares of Royal Dutch Shell Plc. (NYSE ADR: RDS-A) slipped more than 2.4% after the company announced that its earnings fell by 83% in the first quarter. Falling oil prices weighed down the firm's performance in the first quarter and forced the firm to reduce its capital expenditures by at least another 10% for 2016. Shares of Chevron Corp. (NYSE: CVX) – which have surged in recent months – dipped 0.7%, while Exxon Mobil Corp. (NYSE: XOM) fell by 0.2%.
On the economic front, the ADP employment report indicates that hiring in the private sector slipped in April to its lowest reading in three years. The report creates concerns about the pace of domestic job growth and places greater emphasis on Friday's unemployment report, set for release by the U.S. Labor Department. Economists widely expect that the unemployment rate will remain unchanged. But any rise may force the U.S. Federal Reserve to delay the timing of its next interest rate hike.
Now, let's look at the day's biggest stock movers…
Top Stock Market News Today
- On the earnings front, Priceline Group Inc. (Nasdaq: PCLN) cratered another 7.6% despite news that the company beat Wall Street first-quarter expectations. The stock slipped as investors balked at the firm's full-year outlook. The bad news comes just days after the firm's CEO stepped down for having an inappropriate personal relationship with a company employee.
- Shares of Apple Inc. (Nasdaq: AAPL) fell 1% as investors continue to focus on the firm's possible strategies to overcome its struggles in China. Last week, the company reported its worst quarterly earnings report since 2003. It took a public relations hit when activist shareholder Carl Icahn announced that his firm had ditched its sizable stake in the technology giant. That said, investors shouldn't overthink Apple stock and make the same mistake that Icahn has made. Apple will turn it around, and here's how.
- Zillow Group Inc. (Nasdaq: ZG) was one of today's biggest winners. Shares of the online real estate firm rallied 15% after it raised its one-year revenue outlook.
- Shares of Under Armour Inc. (NYSE: UA) cratered after the sports apparel company received a downgrade from Brean Capital from Buy to Hold. The research firm raised concerns about the firm's financial risks and expected increased consolidation in the apparel business. UA stock finished the day off 7.6%.
- Deal speculation is back in focus this morning. Pfizer Inc. (NYSE: PFE) has reportedly approached Medivation Inc. (Nasdaq: MDVN) about a possible deal. MDVN, a manufacturer of cancer drugs, has already turned down an offer from Sanofi SA (NYSE ADR: SNY) worth $9.3 billion. MDVN stock added 2.6% on the day.
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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.