Dow Jones Industrial Average Slides 49 Points on Fears of China Slowdown

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Dow Jones Industrial Average
For Oct. 13, 2015, here’s your top stock market news and stocks to watch based on today’s market moves…

How Did the Stock Market Do Today?

Dow Jones: 17,081.89; -49.97; -0.29%

S&P 500: 2,003.69; -13.77; -0.68%

Nasdaq: 4,796.61; -42.03; -0.87%

The Dow Jones Industrial Average today (Tuesday) dropped 49 points as broader concerns about the Chinese economy again rattled investors’ confidence. Meanwhile, traders remain on guard as September-ending earnings trickle out of corporate compliance offices around the country and weak profit expectations remain the norm. According to data released this morning, China’s imports slumped by 20% in September, a sign of weak domestic demand and an indication the nation’s economic growth is not on pace with state expectations. This morning, the nation announced a fresh round of stimulus efforts to bolster its sputtering economy.

The S&P 500 Volatility Index (VIX), the market’s fear gauge, jumped nearly 9% on the day.

Top Stock Market News Today

  • Stock Market News: All 10 S&P sectors were in the red, with healthcare, energy, and materials stocks lagging the most. Concerns about China’s trade balance and import-export levels rattled investors and again raised concerns about the health of the world’s second-largest economy. The biotech sector continued to decline this afternoon as concerns about regulatory efforts to control prices remain in focus ahead of tonight’s Democratic presidential debate. Shares of iShares NASDAQ Biotechnology Index ETF (Nasdaq: IBB) fell more than 3.1%.
  • Oil Prices Slip: Oil prices fell again as traders took profits from the recent run up in prices and raised additional concerns about global supply in the wake of a report by the International Energy Agency. November WTI oil prices dipped 1.1% to hit $46.58 per barrel, while Brent crude prices slid about 1.6% on the day to hit $49.05. Shares of Chevron Corp. (NYSE: CVX) dipped 0.4% on the day, while Exxon Mobil Corp. (NYSE: XOM) slipped by 0.2%.
  • On Tap Tomorrow: On Wednesday, U.S. retail sales, PPI data, and an update on mortgage applications are in store. On the global front, pay attention to China’s announcement of September CPI and PPI figures, as the nation’s inflation level comes into focus. Companies reporting earnings tomorrow include Netflix Inc. (Nasdaq: NFLX), Bank of America Corp. (NYSE: BAC), Wells Fargo & Co. (NYSE: WFC), Delta Air Lines Inc. (NYSE: DAL), and BlackRock Inc. (NYSE: BLK).

Stocks to Watch: JNJ, BUD, SBMRY, TAP.A, TWTR, JPM

  • Stocks to Watch 1, JNJ: Shares of healthcare giant Johnson & Johnson (NYSE: JNJ) were flat after reporting mixed earnings data for the third quarter. The company said it was negatively affected by a rising U.S. dollar and announced plans to repurchase roughly $10 billion in company stock, a figure that represents 3.7% of outstanding shares.
  • Stocks to Watch 2, BUD: Shares of Anheuser Busch Inbev SA (NYSE ADR: BUD) gained more than 2% after its fifth bid to purchase SABMiller Plc. (OTCMKTS ADR: SBMRY) was accepted. The most recent improved offer is reported to be worth more than $100 billion and will merge the world’s two largest brewing companies. News of the deal sent shares of Molson Coors Brewing Co. (NYSE:TAP.A) up more than 10% on news of the deal.
  • Stocks to Watch No. 3, TWTR: Shares of Twitter Inc. (NYSE: TWTR) were up more than 1% after the microblogging firm announced plans to lay off roughly 8% of its workforce. The announcement was one of the first by its new permanent CEO Jack Dorsey, as the executive plans to focus on building growth.
  • Stocks to Watch No. 4, JPM: After the bell, JPMorgan Chase & Co. (NYSE:JPM) will report quarterly earnings. Analysts anticipate a decline in trading revenue for its investment banking operations. Shareholders remain cautious about the effect of the Federal Reserve’s decision to delay an interest rate hike into the fourth quarter, a decision that affects the financial sector. Wall Street analysts expect an earnings per share (EPS) of $1.39 on $23.93 billion in revenue.

What Investors Must Know This Week

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