Dow Jones Industrial Average Sinks 364; S&P Breaches 1,900

Small-Caps Hit Bear-Market Territory as Stocks Plunge

by Alex Eppstein

Published on Jan 13, 2016 at 4:25 PM

It was a brutal day on Wall Street, as the Dow Jones Industrial Average (DJIA) suffered a triple-digit drop, while the broader S&P 500 Index (SPX) slipped below 1,900 for the first time since early October -- and back into correction territory. Likewise, the Russell 2000 Index (RUT) officially entered a bear market. Transportation stocks were among the hardest hit, as crude oil remained near 12-year lows, and consumer discretionary stocks were also bruised amid concerns of a global economic slowdown, despite the the Fed's Beige Book showing economic expansion in nine of the nation's 12 regions. 


Continue reading for more on today's market, including
:

The Dow Jones Industrial Average (DJIA - 16,151.41) tanked, losing 364.8 points, or 2.2%. Home Depot Inc (NYSE:HD) tumbled 4.8% to lead the way lower for the 29 declining Dow members, while Exxon Mobil Corporation (NYSE:XOM) managed a 0.6% rise.

The S&P 500 Index (SPX - 1,890.28) sank 48.4 points, or 2.5%, and closed below 1,900 for the first time since Sept. 29. The Nasdaq Composite (COMP - 4,526.07) was even worse off, sliding 159.9 points, or 3.4%.
  
The CBOE Volatility Index (VIX - 25.22) boomed to a 2.8-point, or 12.2%, gain, after finding a foothold at its 10-day moving average.

160113recap1

160113recap2

5 Items on Our Radar Today:

  1. General Electric Company (NYSE:GE) announced it will move its headquarters to Boston from Fairfield, Connecticut, enticed by tech talent and tax incentives. Separately, the firm said it will cut 6,500 positions in Europe over the next two years. (Boston Globe; Reuters

  2. Boston Fed President Eric Rosengren warned that the central bank's four expected 2016 interest rate hikes carry "downside risks." Separately, Treasury Secretary Larry Summers sounded a similar note, saying, "I'd be surprised if the world economy can comfortably withstand four hikes." (MarketWatch)

  3. QUALCOMM, Inc.'s (NASDAQ:QCOM) new joint venture sent these these two tech stocks to fresh annual lows.

  4. Option bears cheered as contract drama dropped this healthcare concern.

  5. How CEO Steve Ells triggered a breakout at Chipotle Mexican Grill, Inc. (NYSE:CMG).


160113recap3


160113recap4
Data courtesy of Trade-Alert

Commodities:

After seven straight losing sessions, crude ended a wishy-washy session slightly higher -- but remained close to 12-year lows -- despite weekly increases in crude and gasoline stockpiles. Specifically, oil for February delivery added 4 cents, or 0.1%, to settle at $30.48 per barrel.

Gold snapped a three-day cold streak amid a weaker dollar and stock sell-off, which enhanced the metal's safe-haven appeal. At day's end, February-dated gold was up $1.90, or 0.2%, at $1,087.10 per ounce.


A Schaeffer's exclusive

6 Sectors for Summer

Access your FREE insider report before it's too late!


  
 

Partnercenter


NEW! Explore Schaeffer’s Partners' deals and get connected to top online brokerages with deals tailored exclusively for our readers.  Get answers to your questions regarding transfer fees, commission rates, programs and available discounts related to online trading services.

MORE | MARKETstories


Research Exposes Shortcut to Stock Market Wins
A simple way to stop picking losers, and start cashing in like Wall Street's elite.
Google Postpones Android Reveal, "Now is Not the Time to Celebrate"
"Now is not the time to celebrate," Google said in a message on its website
ZNGA Zooms to 8-Year High on Billion-Dollar Deal
ZNGA is planning to buy Peak for $1.8 billion
Huge New Legal Marijuana Market Has Shortage Crisis
250 million Europeans have access to medical marijuana. There's already a shortage....