Crude's collapse and a bear market in China pressured the DJIA below 16,000
The
Dow Jones Industrial Average (DJIA) was down nearly 537 points at its intraday low, but despite trimming a portion of those losses, the index settled south of the 16,000 level for the first time since late August. Fueling the bloodbath was yet
another 12-year low for crude oil, a
bleak milestone for China stocks, and
two key economic indicators back at 2009 lows. Meanwhile, the broader
S&P 500 Index (SPX) landed back in correction territory, and the
Russell 2000 Index (RUT) plunged to another two-year low.
Continue reading for more on today's market, including:
The Dow Jones Industrial Average (DJIA - 15,988.08) finished the week on a brutal note, plunging roughly 391 points, or 2.4%. All 30 blue chips ended lower, paced by a 9.1% decline at Intel Corporation (NASDAQ:INTC) in the wake of earnings. On a weekly basis, the Dow lost 2.2%.
The S&P 500 Index (SPX - 1,880.29) surrendered 41.6 points, or 2.2%, while the Nasdaq Composite (COMP - 4,488.42) plummeted 126.6 points, or 2.7%. Relative to last Friday's close, the SPX and COMP fell 2.2% and 3.3%, respectively.
The CBOE Volatility Index (VIX - 27.02) shot up about 3.1 points, or 12.8%, for its highest close since late September. However, for the week, the market's "fear gauge" edged up only 0.04%.
5 Items on Our Radar Today:
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It was a rough day on the data front. Retail sales edged 0.1% lower in December, as expected, to cap their
weakest year since 2009, with a total gain of 2.1% for all of 2015. Meanwhile, weakness in the mining and utilities sectors
pressured industrial output to a steeper-than-forecast -- and third straight -- monthly drop.
(Bloomberg Business; Reuters) -
Retail colossus Wal-Mart Stores, Inc. (NYSE:WMT) announced it will be
closing 269 stores, or about 2% of its global outlets, due to mounting competition from online retailers. About 16,000 employees, including 10,000 in the U.S., will be impacted by the decision. (
The New York Times)
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How the FDA sparked a more than 50% sell-off in this biotech stock.
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Barrick Gold Corporation (USA) (NYSE:ABX) defied the market meltdown, as traders sought out safe-haven investments.
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Analysts are piling on as GoPro Inc (NASDAQ:GPRO) extends its run lower.
Data courtesy of Trade-Alert
Commodities:
Crude got crushed amid expectations that sanctions will be lifted on Iran -- allowing the nation's oil into an already oversupplied market -- and concerns about the state of China's economy. Oil prices hit a fresh 12-year low, wrapping up the worst two-week stretch since the 2008 financial crisis. By day's end, February crude futures were down $1.78, or 5.7%, at $29.42 per barrel. On a weekly basis, oil fell 11.3%.
The global stock rout proved to be a boon for gold -- though the precious metal's advance was contained by concerns about another rate hike, heightened by hawkish remarks from New York Fed President William Dudley. Specifically, February-dated gold added $17.10, or 1.6%, to settle at $1,090.70 per ounce -- but edged 0.7% lower week-over-week.