S&P 500   3,886.75 (-0.36%)
DOW   31,166.52 (-0.28%)
QQQ   284.03 (-1.92%)
AAPL   135.11 (-1.63%)
MSFT   248.28 (-1.92%)
FB   191.16 (-0.07%)
GOOGL   2,140.69 (-3.03%)
AMZN   2,126.85 (-0.91%)
TSLA   645.47 (-9.01%)
NVDA   162.38 (-5.17%)
BABA   86.40 (-1.47%)
NIO   16.08 (-3.48%)
AMD   90.93 (-5.94%)
CGC   5.43 (-7.50%)
MU   67.40 (-2.88%)
T   20.24 (+0.15%)
GE   74.36 (-1.82%)
F   12.36 (-3.81%)
DIS   101.33 (-1.75%)
AMC   11.72 (-10.40%)
PFE   52.02 (+2.70%)
PYPL   78.84 (-3.00%)
NFLX   182.75 (-0.40%)
S&P 500   3,886.75 (-0.36%)
DOW   31,166.52 (-0.28%)
QQQ   284.03 (-1.92%)
AAPL   135.11 (-1.63%)
MSFT   248.28 (-1.92%)
FB   191.16 (-0.07%)
GOOGL   2,140.69 (-3.03%)
AMZN   2,126.85 (-0.91%)
TSLA   645.47 (-9.01%)
NVDA   162.38 (-5.17%)
BABA   86.40 (-1.47%)
NIO   16.08 (-3.48%)
AMD   90.93 (-5.94%)
CGC   5.43 (-7.50%)
MU   67.40 (-2.88%)
T   20.24 (+0.15%)
GE   74.36 (-1.82%)
F   12.36 (-3.81%)
DIS   101.33 (-1.75%)
AMC   11.72 (-10.40%)
PFE   52.02 (+2.70%)
PYPL   78.84 (-3.00%)
NFLX   182.75 (-0.40%)
S&P 500   3,886.75 (-0.36%)
DOW   31,166.52 (-0.28%)
QQQ   284.03 (-1.92%)
AAPL   135.11 (-1.63%)
MSFT   248.28 (-1.92%)
FB   191.16 (-0.07%)
GOOGL   2,140.69 (-3.03%)
AMZN   2,126.85 (-0.91%)
TSLA   645.47 (-9.01%)
NVDA   162.38 (-5.17%)
BABA   86.40 (-1.47%)
NIO   16.08 (-3.48%)
AMD   90.93 (-5.94%)
CGC   5.43 (-7.50%)
MU   67.40 (-2.88%)
T   20.24 (+0.15%)
GE   74.36 (-1.82%)
F   12.36 (-3.81%)
DIS   101.33 (-1.75%)
AMC   11.72 (-10.40%)
PFE   52.02 (+2.70%)
PYPL   78.84 (-3.00%)
NFLX   182.75 (-0.40%)
S&P 500   3,886.75 (-0.36%)
DOW   31,166.52 (-0.28%)
QQQ   284.03 (-1.92%)
AAPL   135.11 (-1.63%)
MSFT   248.28 (-1.92%)
FB   191.16 (-0.07%)
GOOGL   2,140.69 (-3.03%)
AMZN   2,126.85 (-0.91%)
TSLA   645.47 (-9.01%)
NVDA   162.38 (-5.17%)
BABA   86.40 (-1.47%)
NIO   16.08 (-3.48%)
AMD   90.93 (-5.94%)
CGC   5.43 (-7.50%)
MU   67.40 (-2.88%)
T   20.24 (+0.15%)
GE   74.36 (-1.82%)
F   12.36 (-3.81%)
DIS   101.33 (-1.75%)
AMC   11.72 (-10.40%)
PFE   52.02 (+2.70%)
PYPL   78.84 (-3.00%)
NFLX   182.75 (-0.40%)

Dow drops 1,000 points as markets extend slide in 2022

Monday, January 24, 2022 | Damian J. Troise, AP Business Writer


A man wearing a face mask walks near a money exchange office in downtown Seoul, South Korea, Monday, Jan. 24, 2022. Asian markets mostly fell on Monday after a sell-off gave Wall Street its worst week since the start of the pandemic in early 2020. (AP Photo/Lee Jin-man)

NEW YORK (AP) — The Dow Jones Industrial Average dropped more than 1,000 points Monday as financial markets buckled in anticipation of inflation-fighting measures from the Federal Reserve and fretted over the possibility of conflict between Russia and Ukraine.

Stocks extended their three-week decline on Wall Street and put the benchmark S&P 500 on track to a so-called correction — a drop of 10% or more from its most recent high. The price of oil and bitcoin fell, and so did the yield on 10-year Treasury notes, a sign of investor concern about the economy.

Stocks have fallen steadily so far this year as the Fed has signaled its readiness to begin raising its benchmark short-term interest rate in 2022 to try to tame inflation, which is at its highest level in nearly four decades. The Fed's short-term rate has been pegged near zero since the pandemic hit the global economy in 2020 and that has fueled borrowing and spending by consumers and businesses.

The Fed has kept downward pressure on longer-term interest rates by buying trillions of dollars worth of government and corporate bonds, but those emergency purchases are scheduled to end in March. Nudging rates higher is intended to help slow economic growth and the rate of inflation.

By early afternoon the Dow had steadied and was down 721 points, or 21%, to 33,544. The S&P 500 fell 2.6% to 4,285, and is now down about 10.7% from the closing high it set on Jan. 3. A close of 4,316.90 or lower will put it into a correction. The Nasdaq fell 2.8%.

“There’s a short-term panic and part of that is the high level of uncertainty around what the Fed is going to do,” said Sylvia Jablonski, chief investment officer at Defiance ETFs.

Jablonski said investors haven't rushed in to buy stocks during the recent decline. “Buying the dip” has been a hallmark of market optimism for much of the period following the financial crisis in 2008-2009.


Technology stocks again led the broader decline in the market as investors shift money away from pricier stocks in anticipation of rising interest rates. Higher rates make shares in high-flying tech companies and other expensive growth stocks relatively less attractive.

Apple fell 3.1% and Microsoft shed 3.3%. Nvidia, a high-flier in 2021, fell 7.4% and is now down more than 26% in January. The technology sector is by far the biggest in the S&P 500 and is now down more than 14% so far this year.

The selloff has extended to cryptocurrencies. Bitcoin fell as low as $33,000 overnight but had rallied back above $36,000 in the early afternoon. Still the digital currency is far below the high of more than $68,000 it hit in November.

The market is waiting to hear from Federal Reserve policymakers after their latest meeting ends Wednesday. Some economists have expressed concern that the Fed is already moving too late to combat high inflation.

Other economists say they worry that the Fed may act too aggressively. They argue that numerous rate hikes would risk causing a recession and wouldn’t slow inflation in any case. In this view, high prices mostly reflect snarled supply chains that the Fed’s rate hikes are powerless to cure.

When the Fed boosts its short-term rate, it tends to make borrowing more expensive for consumers and businesses, slowing the economy with the intent of reducing inflation. That could reduce company earnings, which tend to dictate stock prices over the long term.

The Fed’s benchmark short-term interest rate is currently in a range of 0% to 0.25%. Investors now see a nearly 65% chance that the Fed will raise the rate four times by the end of the year, up from a 35% chance a month ago, according to CME Group’s Fed Watch tool.

Wall Street anticipates the first increase in interest rates in March. In a note to clients over the weekend, Goldman Sachs forecast four rate hikes this year but said the Fed could be forced to raise rates five times or more if supply chain problems and wage growth keep inflation at elevated levels.

Investors are also keeping an eye on developments in Ukraine. Tensions soared Monday between Russia and the West over concerns that Moscow is planning to invade Ukraine, with NATO outlining potential troop and ship deployments.

Europe’s STOXX 600 index closed down 3.6% on concerns about Fed tightening and worries about the situation around Ukraine. The Russian ruble has also fallen after U.S. President Joe Biden indicated that in the event of a Russian invasion the U.S. could block Russian banks from access to dollars or impose other sanctions.

In the U.S. markets, health care stocks were also falling sharply Monday, along with a wide range of retailers. Target fell 2.1% and Pfizer shed 4.1%.

Bond yields edged lower. The yield on the 10-year Treasury fell to 1.72% from 1.74% late Friday. Falling yields weighed on banks, which rely on higher yields to charge more lucrative interest on loans. Bank of America fell 3.5%.

Inflation is putting pressure on businesses and consumers as demand for goods continues to outpace supplies. Companies have been warning that supply chain problems and rising raw materials costs could crimp their finances. Retailers, food producers and others have been raising prices on goods to try and offset the impact.

Rising costs are raising concerns that consumers will start to ease spending because of the persistent pressure on their wallets.

Investors are monitoring the latest round of corporate earnings, in part, to gauge how companies are dealing with higher prices and what they plan to do as inflation continues pressuring operations.

On Tuesday, American Express, Johnson & Johnson, and Microsoft report results. Boeing and Tesla report their results on Wednesday. McDonald's, Southwest Airlines and Apple report results on Thursday.

Wall Street also has several key economic reports to look forward this week. Investors will get more data on how consumers feel with the release on Tuesday of The Conference Board's Consumer Confidence Index for January. The Commerce Department releases its report on fourth-quarter gross domestic product on Thursday and its report on personal income and spending for December on Friday.

___

Associated Press reporters Christopher Rugaber in Washington, Stan Choe in New York and David McHugh in Frankfurt contributed.


7 Large-Cap Stocks to Help Navigate a Volatile Market

Large-cap stocks are foundational elements of every portfolio. These steady performers may not excite growth investors in the midst of a bull market. However, in periods of volatility, large-cap stocks act as a port in the storm.

Large-cap stocks offer investors some important benefits. First, by definition large-cap stocks are companies that have a market capitalization of $10 billion or more. This is an indication that the company has a mature business that carries less risk of having a significant downturn in business during economic downturns.

Second, large-cap stocks frequently pay dividends. These dividends offset the relatively slower growth in the company’s stock price and can lead to an impressive comprehensive total return. In several cases these companies have increased their dividends over a long period of time making them members of the Dividend Aristocrats or Dividend Kings club.

Large-cap stocks also give investors access to a significant amount of financial data. This makes it easy for investors to conduct their due diligence and understand how profitable an investment is likely to be.

In this special presentation, we’re giving you a look at seven large-cap stocks that have a bullish outlook at a time when the market is likely to remain volatile.



View the "7 Large-Cap Stocks to Help Navigate a Volatile Market".


Companies Mentioned in This Article

CompanyMarketRank™Current PricePrice ChangeDividend YieldP/E RatioConsensus RatingConsensus Price Target
Johnson & Johnson (JNJ)
2.7937 of 5 stars
$175.38+0.8%2.42%23.64Buy$190.50
Compare These Stocks  Add These Stocks to My Watchlist 

Resources

Premium Research Tools

MarketBeat All Access subscribers can access stock screeners, the Idea Engine, data export tools, research reports, and other premium tools.

Discover All Access

Market Data and Calendars

Looking for new stock ideas? Want to see which stocks are moving? View our full suite of financial calendars and market data tables, all for free.

View Market Data

Investing Education and Resources

Receive a free world-class investing education from MarketBeat. Learn about financial terms, types of investments, trading strategies and more.

Financial Terms
Details Here
MarketBeat - Stock Market News and Research Tools logo

MarketBeat empowers individual investors to make better trading decisions by providing real-time financial data and objective market analysis. Whether you’re looking for analyst ratings, corporate buybacks, dividends, earnings, economic reports, financials, insider trades, IPOs, SEC filings or stock splits, MarketBeat has the objective information you need to analyze any stock. Learn more about MarketBeat.

MarketBeat is accredited by the Better Business Bureau MarketBeat is rated as Great on TrustPilot

© American Consumer News, LLC dba MarketBeat® 2010-2022. All rights reserved.
326 E 8th St #105, Sioux Falls, SD 57103 | U.S. Based Support Team at [email protected] | (844) 978-6257
MarketBeat does not provide personalized financial advice and does not issue recommendations or offers to buy stock or sell any security.

Our Accessibility Statement | Terms of Service | Do Not Sell My Information | RSS Feeds

© 2022 Market data provided is at least 10-minutes delayed and hosted by Barchart Solutions. Information is provided 'as-is' and solely for informational purposes, not for trading purposes or advice, and is delayed. To see all exchange delays and terms of use please see disclaimer. Fundamental company data provided by Zacks Investment Research.