Dow Jones Industrial Average Plunges 254 Points on Growth Concerns

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For Feb. 11, 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 industrial average
Dow Jones:
15,660.18; -254.56; -1.60%

S&P 500: 1,829.08; -22.78; -1.23%

Nasdaq: 4,266.84; -16.76; -0.39%

The Dow Jones Industrial Average today (Thursday) lost more than 254 points thanks to another broad sell-off and concerns about global economic growth. Shares of Boeing Co. (NYSE: BA) fell 6.8% after regulators announced they are looking into the company’s accounting practices. The stock’s downturn accounted for roughly 25% of the Dow Jones’ decline on the day. Meanwhile, shares of Cisco Systems Inc. (Nasdaq: CSCO) surged 9.6% after the company reported stronger than expected quarterly earnings.

The CBOE Volatility Index (VIX) – Wall Street’s fear gauge – was up 6.3%.

On the economic front, U.S. Federal Reserve Chairwoman Janet Yellen testified before the Senate Banking Committee and remained defiant about the central bank’s pledge to “normalize” monetary policy. In a surprise statement, Yellen admitted the Federal Reserve was evaluating the possibility of negative interest rates. As we’ve said before, the Fed’s plan isn’t going to end well for the markets.

Top Stock Market News Today

  • Stock Market Today: All 10 major S&P sectors declined, with financial and utilities stocks raising new alarms for investors. The banking sector received another black eye today as concerns about the European financial sector weighed on trader sentiment. Shares of Bank of America Corp. (NYSE: BAC) slipped 6.5% and led a 4.5% decline for the S&P 500 bank index. European banking shares were also hammered. Shares of Deutsche Bank AG (NYSE: DB) fell 4.3%, while Credit Suisse Group AG (NYSE ADR: CS) dipped 6.7%.
  • Metal Surge: Gold prices surged another 4.5% and hit a one-year high as the U.S. dollar slipped to a 16-month low against the Japanese yen. Silver prices ticked up more than 3.6% as global uncertainty continues to unnerve investors. The ongoing downturn in European banking stocks – which hit multiyear lows – and concerns about falling interest rates have investors turning to safety.
  • Oil Prices: Crude oil prices closed at their lowest level since May 6, 2003, despite The Wall Street Journal reporting OPEC is considering a proposal to reduce output. The report cited comments from UAE Energy Minister Suhail Mohammed Faraj Al Mazrouei that falling crude prices have forced non-OPEC members to cap production levels. WTI crude oil – priced in New York – slipped 4.5% to hit $26.21 per barrel. Meanwhile, Brent crude – priced in London – dipped 2.5% to hit $30.06 per barrel. Shares of Exxon Mobil Corp. (NYSE: XOM) gained 0.3%, while shares of Chevron Corp. (NYSE: CVX) lost 0.1%.
  • On Tap Tomorrow: On Friday, keep an eye out for two speeches by members of the Federal Reserve – Rob Kaplan and William Dudley. In addition, retail stocks will be in focus with the release of monthly sales figures. Finally, look for an update on import and export prices, consumer sentiment, and business inventories. Companies set to report quarterly earnings include DENTSPLY International Inc. (Nasdaq: XRAY), IPG Photonics Corp. (Nasdaq: IPGP) Red Robin Gourmet Burgers Inc. (Nasdaq: RRGB), ITT Corp. (NYSE: ITT), LifePoint Health Inc. (Nasdaq: LPNT), and ArcelorMittal SA (NYSE ADR: MT).

Stocks to Watch: TSLA, MYL, PRGO, ZNGA, P, YHOO, AMZN

  • Stocks to Watch No. 1, TSLA: Shares of Tesla Motors Inc. (Nasdaq: TSLA) jumped 4.7% despite news the electric vehicle manufacturer missed Wall Street earnings expectations in the fourth quarter. The firm reported an adjusted loss per share of $0.87 with bottom-line revenue of $1.75 billion. The stock was moving up after the firm announced plans to deliver 80,000 to 90,000 Model S and Model X vehicles in 2016.
  • Stocks to Watch No. 2, MYL: Shares of Mylan NV (Nasdaq: MYL) cratered more than 18% after the firm announced plans to purchase Swedish pharmaceutical firm Meda AB for $7.2 billion. The deal is a desperate attempt to save face after the firm failed to gather enough stockholder votes to purchase Perrigo Co. (NYSE: PRGO).
  • Stocks to Watch No. 3, ZNGA: Shares of Zynga Inc. (Nasdaq: ZNGA) slumped 15% after the firm released a dismal fourth-quarter earnings report. Best-known for creating the online games “FarmVille” and “Words with Friends,” Zynga has struggled immensely as a public company. Its stock has fallen more than 80% since its 2012 IPO. The firm also slashed its forward guidance levels and said its customer base is declining.
  • Stocks to Watch No. 4, P: Shares of Pandora Media Inc. (NYSE: P) jumped 8.5% on news the company is exploring a sale of itself. According to a report in The New York Times, potential suitors include Yahoo! Inc. (Nasdaq: YHOO), Hulu, and Inc. (Nasdaq: AMZN).

With today’s losses, many investors fear we’re headed for a stock market crash, correction, or bear market. Here’s what our Money Morning experts predict will happen in 2016…

What Investors Must Know This Week

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