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It was another volatile day for the markets on Wednesday as the Dow Jones Industrial Average fell more than 200 points and tech stocks yanked the Nasdaq down more than 1%. Retail stocks had their worst day since 2011 after an array of bad sales reports and news of a merger being blocked by a federal judge. Despite the 200-plus-point drop, the S&P Volatility Index (VIX) only increased 6.8%.
Here's what else you need to know about the markets on May 11, 2016.
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First up, check out the results for the Dow Jones, S&P 500, and Nasdaq:
Dow Jones: 17,711.12; -217.23; -1.21%
S&P 500: 2,064.46; -19.93; -0.96%
Nasdaq: 4,760.69; -49.19; -1.02%
Now, here's the top stock market news today…
DJIA Today: Retail Stocks Slump, Disney Disappoints on Q2 Earnings
Shares of Walt Disney Co. (NYSE: DIS) fell more than 4.5% after the company fell short of earnings expectations after the bell on Tuesday. The quarterly earnings decline – the first for the company in five years – was a surprise due to the massive profits the firm earned from its blockbuster films "Star Wars: The Force Awakens" and "Zootopia." The company also cited a decline in subscribers to its sports network ESPN as cord-cutting becomes an increasing trend among Americans. So, what should you do after Disney's earnings report?
The hedge fund industry kicked off its 2016 Salt Conference in Las Vegas, and some of finance's biggest names have gathered in Las Vegas to discuss the state of the markets and what lies ahead for the U.S. economy. But the biggest topic on the ground isn't oil prices. Three morning sessions all debated the possibility of a Trump presidency. The conclusion: Gold prices could see a rally if Trump provides any political risk. So, should you buy gold if Donald Trump becomes president?
The online lending industry continues to face calls for transparency and new regulatory oversight. The U.S. Treasury Department issued a report on Tuesday that raised concerns about consumer protection laws and the business practices as one of its leading firms – Lending Club Corp. (NYSE: LC) – becomes embroiled in a financial scandal. Of course, our Capital Wave Strategist raised concerns about this industry back in 2015, when Shah warned investors to keep their money away from these networks. Shares of Lending Club were off another 0.5% on Wednesday, and shares are now down nearly 80% from their 52-week high. Buyer beware.
Crude oil prices rallied 3.1% after the U.S. Energy Information Administration shocked traders by announcing the nation's first weekly draw of crude inventories in six weeks. The decline accompanied supply concerns in Africa and Canada. Brent crude pushed up 4.1%. Wildfires in Canada and a series of attacks on infrastructure in Nigeria continue to weigh on sentiment.
Now, let's look at the day's biggest stock movers and the must-own stock for today…
Top Stock Market News Today
- Shares of Valeant Pharmaceuticals International Inc.'s (NYSE: VRX) shares are now off more than 20% this week as new concerns have arisen over the firm's operations. Here's why VRX stock is falling this week.
- Shares of Macy's Inc. (NYSE: M) fell more than 15% after the company reported a sharper sales decline than investors had anticipated. The stock is now at a four-year low. The firm says that a cooler than expected spring season affected sales demand. The news pulled down shares of rivals Kohl's Corp. (NYSE: KSS), Nordstrom Inc. (NYSE: JWN), and JCPenney Co. Inc. (NYSE: JCP) more than 2%.
- Meanwhile, shares of Office Depot Inc. (Nasdaq: ODP) cratered nearly 40%, and shares of Staples Inc. (Nasdaq: SPLS) fell 18% on news that a federal judge has blocked a merger between the two office retail giants over antitrust concerns.
- Finally, here's your stock of the day. As Money Morning Technical Trading Specialist D.R. Barton explains, the markets are ticking higher because investors expect that the U.S. Federal Reserve will continue to be "accommodative" and avoid raising interest rates in the near future. But something big is on the horizon, and investors should take D.R.'s advice and follow this strategy in the months ahead…
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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.