Here Are 3 Hot Things to Know About Stocks Right Now

  • The Dow Jones Industrial Average slumped on Tuesday ending the blue chip index's four-day winning streak. The Dow rose 3% last week, the S&P 500 gained 2.9% and the Nasdaq jumped 2.7%.
  • Johnson & Johnson (JNJ) posted stronger-than-expected fourth-quarter earnings and forecast a modest increase in full-year sales for 2019. The stock fell 1.3%.
  • Halliburton Co. (HAL) earned 41 cents a share on an adjusted basis in the fourth quarter, topping Wall Street forecasts by 4 cents. Shares fell 3% after the company said completion and production sales slowed from the previous three months.

Wall Street Overview

Stocks traded sharply lower on Tuesday, Jan. 22, as Wall Street reacted to warnings on global economic growth. Stocks had their worst day of trading since the first week of the year. 

China's economy grew at its slowest pace in nearly three decades last year, official data indicated Monday, as domestic demand and export growth suffered from government moves to crack down on crippling pollution with tighter rules on building and emissions. The ongoing trade war with the United States also had a knock-on effect through global supply chains, many of which originate from China, the world's biggest exporter.

Confirmation of the China slowdown was followed by the second cut in three months to global growth forecasts from the International Monetary Fund, which cited concerns over unresolved trade conflicts between Washington, Brussels and Beijing and slowing activity in Europe.

The IMF said it sees the world economy growing at 3.5% this year and 3.6% in 2020, clipping 0.2 and 0.1 percentage points, respectively, from its prior estimate.

The Dow Jones Industrial Average declined 302 points, or 1.22%, to 24,407, the S&P 500 fell 1.4%, and the Nasdaq slumped 1.9%.

The selloff erased some of the gains the major indices made last week. At its low point, the Dow dropped 462 points, but late news out of the White House that a report saying that China and the U.S. had cancelled trade talks was false  gave markets enough momentum to come up off of session lows. 

Johnson & Johnson (JNJ) posted stronger-than-expected fourth-quarter earnings and forecast a modest increase in full-year sales for 2019 as the consumer healthcare group looks to rebound from last month's steep share price declines triggered by a report that alleged it knew for decades that its iconic baby powder sometimes contained asbestos and failed to alert authorities. The stock fell 1.3%.

Halliburton Co. (HAL) earned 41 cents a share on an adjusted basis in the fourth quarter, topping Wall Street forecasts by 4 cents. But shares fell 3% after the company said completion and production sales slowed from the previous three months.

Arconic Inc. (ARNC) tumbled 16% to $17.02 on Tuesday after the metal manufacturing company said it was no longer pursuing a sale.

Arconic reportedly had put itself up for sale during the summer. Apollo Global Management (APO) , a large private-equity firm, was reported to have been a leading bidder for the company, offering $10 billion for Arconic six days ago, which would have been a 2% premium over the trading price that day.

Stanley Black & Decker Inc. (SWK) earned $2.11 a share on an adjusted basis, 1 cent better than analysts' estimates. The stock fell 15.5%, however, after the company said fiscal 2019 earnings would come in below analysts' forecasts.

Johnson & Johnson is a holding in Jim Cramer's Action Alerts PLUS member club. Want to be alerted before Jim Cramer buys or sells JNJ? Learn more now.

Elliott Management pressed eBay Inc. (EBAY) to adopt a plan to increase shareholder value, accusing management of "underperforming its peers and the market for a prolonged period of time."

Elliott, which said it controls a 4% stake in eBay, said management should "turn its singular attention to growing and strengthening marketplace," asserting the group is "far from broken, and its future should be bright." Elliott's five-step plan, the activist said, outlines a value creation opportunity that would take the path of eBay shares to between $55 and $63 each by 2020.

The stock jumped 6.13% to $32.92.

UBS Group AG (UBS) , Switzerland's biggest investment bank, posted weaker-than-expected fourth-quarter earnings because of a slowdown in its key wealth management business.

UBS reported nearly $8 billion in net client outflows from its wealth management division, a figure that echoed record withdrawals from investment funds in the United States and elsewhere, over the final three months of 2018. The exodus helped push net income 2% higher from the same period last year to $862 million but well shy of the bank's own forecast of $985 million. Wealth management profits fell 22% to $769 million, the bank said.

UBS shares traded in the U.S. fell 4.9%.