Here Are 3 Hot Things to Know About Stocks Right Now
- The Dow Jones Industrial Average finished sharply lower Wednesday as dismal data on U.S. factory activity sparked concerns for a global recession.
- Johnson & Johnson (JNJ) shares rose after the consumer healthcare company reached a $20 million settlement in Ohio that keeps the company out of a federal trial linked to the nation's opioid crisis.
- Stitch Fix (SFIX) tumbled after the online clothing retailer beat fiscal fourth-quarter earnings expectations but issued a weaker-than-expected revenue forecast for the first quarter. Stitch Fix is Real Money's Stock of the Day.
Wall Street Overview
Detrick said that the U.S. consumer "remains quite strong and the consumer makes up nearly 70% of GDP. This makes the services number and jobs data out the next two days all the more important."
The Institute for Supply Management's manufacturing index in September fell to its lowest level since 2009, with export orders tumbling amid the protracted trade dispute with China and employment contracting as plants and facilities were idled and investment stalled.
All of this impeachment nonsense, which is going nowhere, is driving the Stock Market, and your 401K's, down. But that is exactly what the Democrats want to do. They are willing to hurt the Country, with only the 2020 Election in mind!— Donald J. Trump (@realDonaldTrump) October 2, 2019
"Markets overreact to everything now-everyone should know by now that tariffs were going to slow growth and harm global manufacturing," Jamie Cox, managing partner for Harris Financial Group, said. "The fact that it showed up in US ISM this month should be of no surprise to anyone. Additionally, the Bernie Sanders news put the spotlight on an ever growing negative threat to markets, tax policy, and basically anything that matters financially -- an Elizabeth Warren nomination for President. Add in a little impeachment and you get the perfect recipe for a sell off."
Nevertheless, Cox added, "the bond market isn't signaling panic and we'll likely find calm waters very soon."
E*Trade (ETFC) fell 3.6% to $35.20, while rival online brokers continue to fall as investors re-priced the retail stock-trading sector following Charles Schwab's (SCHW) move Tuesday to eliminate commissions.
Ford (F) said third-quarter car sales fell 3.8%, not as bas as analysts' consensus estimate of a 6.1% decline. The company's truck segment was the lone unit to increase sales in the quarter, up 8.8% to 309,920. Ford shares were down 3.3% to $8.61.
General Motors (GM) reported that third-quarter sales rose 6.3% from a year earlier to 738,638 vehicles, led by the GMC and Buick brands. A strike against the automaker is in its third week, as contract talks between the company and the United Auto Workers continue. Shares were down 4% to $34.68.
Oil prices were lower Tuesday after the Energy Information Administration reported an inventory increase of 3.1 million barrels for the week ended Sept. 27, higher than estimates that called for a rise of 1.57 million barrels.
Brent crude contracts were down $1.32 to $57.57 a barrel, while West Texas Intermediate contracts, which are more tightly linked to U.S. gas prices, were off $1.01 to $52.61 a barrel.
In addition, the American Petroleum Institute reported late Tuesday that U.S. crude supplies fell by 5.9 million barrels for the week ended Sept. 27
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