Here Are 3 Hot Things to Know About Stocks Right Now
- The Dow Jones Industrial Average has declined 3.5% so far in 2018. If it closes lower in the first quarter, a nine-quarter streak of gains will end.
- The Dow was on pace for its worst month of trading since January 2016.
- The final reading for U.S. GDP in the fourth quarter was up 2.9%.
Wall Street Overview
U.S. stocks weren't able to maintain their momentum and closed lower across the board Wednesday, March 28, with the Dow Jones Industrial Average wading further into correction territory and tech stocks falling for the second day
The Dow fell 0.04%, or 9 points, to 23,848 and the S&P 500 declined 0.3%. The Nasdaq fell 0.85%.
Amazon.com Inc. (AMZN) fell 4.38% on a report that Donald Trump wants to go after the online retailing giant. Netflix Inc. (NFLX) fell 4.96%.
The final estimate of gross domestic product in the fourth quarter was raised to a 2.9% annual rate, up from the prior estimate of 2.5%, the Commerce Department said Wednesday. GDP growth in the third quarter was 3.2%.
"So while there is no shortage of noise out there to distract investors, especially in light of the recent tech wreck and headwinds from a hawkish (Federal Reserve) ... upward revision (of GDP) should serve as a reminder that economic fundamentals carry weight and remain strong," said Mike Loewengart, vice president of investment strategy at E*Trade Financial Corp.
A federal appeals court overturned a decision in a long-running legal battle over whether Action Alerts PLUS holding Alphabet Inc.'s (GOOGL) Google infringed on Oracle Corp.'s (ORCL) Java programming language to build its Android mobile operating system. The court said Google's use of Java was "not fair" and sent the case back to trial to determine damages.
Oracle had originally sought $9 billion. The court said Android helped Google earn $42 billion in advertising revenue since the first Android phone went on sale in 2008, the Associated Press reported.
Oracle fell 0.9%, while Alphabet was basically flat.
Shares of Tesla Inc. (TSLA) fell 7.67% on Wednesday after the National Transportation Safety Board announced an investigation into a fatal crash involving one of the company's vehicles.
Meanwhile, Tesla had its credit rating downgraded by Moody's Investors Service on Tuesday, with the ratings agency citing "significant shortfall" in the production of the Tesla Model 3, and warned warned that it faces "liquidity pressures due to its large negative cash flow and the pending maturities of convertible bonds."
Takeda, Japan's biggest drugmaker by sales, said Shire would bolster its core therapeutic areas of oncology, GI and neuroscience and align the company with market opportunities in the United States. It also noted value propositions in Shire's global rare disease franchise.
Walgreens Boots Alliance Inc. (WBA) posted adjusted earnings in its fiscal second quarter of $1.73 a share, higher than analysts' estimates of $1.55. Revenue was $33.02 billion, ahead of forecasts of $32.2 billion. The drugstore chain also raised its earnings guidance for 2018. The stock rose 2.47%.
BlackBerry Inc. (BB) shares fell 1.6% after rising earlier after the software company posted fiscal fourth-quarter earnings and sales that beat Wall Street expectations.
Lululemon Athletica Inc. (LULU) gained 9.2% after the yoga-clothing retailer reported fourth-quarter profit and sales that topped estimates.
Equifax Inc. (EFX) rose 2.24% on Wednesday after naming Mark Begor as its CEO, effective April 16. Begor was most recently managing director at Warburg Pincus. He replaces Richard Smith, who left the company last September after a data breach scandal.