Oil prices also fell to an annual low
The recent selling pressure intensified today, with the Dow and S&P touching new annual lows, and the Nasdaq briefly entering bear-market territory -- defined as 20% off its all-time high. Lingering concerns about the Fed and plummeting oil prices weighed on stocks, while a standoff in Washington, D.C. fueled fears of a government shutdown. Specifically, President Donald Trump said he won't sign a funding bill -- which already passed through the Senate -- unless it includes money for the border wall with Mexico. If a deal is not reached by midnight tomorrow, the government faces a partial shutdown. Against this uncertain backdrop, Wall Street's "fear barometer" logged its highest close in 10 months.
Continue reading for more on today's market, including:
- 3 drug stocks destroyed by FDA news.
- How Carnival options traders doubled their money in two weeks.
- Plus, the software stock loved by analysts; bullish bets on FAANG; and Tilray's new partner.
The Dow Jones Industrial Average (DJI - 22,859.60) ended 464.1 points lower, or 2%, and touched an annual low of 22,644.31. Of the 30 Dow stocks, only Johnson & Johnson (JNJ) finished higher, adding 0.5%. Walgreens Boots Alliance (WBA) paced the 29 declining stocks, dropping more than 5% after earnings.
The S&P 500 Index (SPX - 2,467.42) shed 39.5 points, or 1.6%, after touching a new low of 2,441.18. The Nasdaq Composite (IXIC - 6,528.41) dove 108.4 points, or 1.6%, after marking a new annual low of 6,447.91 -- below the threshold for bear-market territory.
The Cboe Volatility Index (VIX - 28.38) ended the day up 2. 8 points, or 11%, for its highest close since February.
5 Items on our Radar Today
- Cigarette maker Altria Group today confirmed a $12.8 billion investment in e-cigarette maker Juul. The company said it took a 35% stake in Juul to "prepare for a future where adult smokers overwhelmingly choose non-combustible products over cigarettes." (MarketWatch)
- Thousands of travelers have been stranded at London's Gatwick Airport, which has been shuttered due to commercial-sized drones near the airfield -- something officials have deemed as deliberate. As such, armed forces are being deployed to track the operators of the drones. (Reuters)
- Analyst: Buy this software stock now.
- Why one brokerage firm is bullish on (most) FAANG stocks.
- The Tilray partnership shaking up the beverage industry.
Data courtesy of Trade-Alert
Oil Tanks to New Lows
Oil resumed its recent rout, barreling to new annual lows on concerns about global oversupply. February-dated crude futures plunged $2.29, or 4.8%, to settle at $45.88 per barrel.
Gold futures, on the other hand, ended higher, bolstered by a weaker greenback and demand for "safe haven" assets amid the stock market's plunge. By the close, gold for February delivery was up $11.50, or 0.9%, at $1,267.90 an ounce.