Drug stocks took a late-day hit after Trump threatened litigation
Stocks started the week on the wrong foot, as the Dow closed more than 330 points lower. FAANG stocks were the culprit in today's collapse, as Facebook (FB) sold off amid its data-harvesting controversy, dragging tech into the red. In addition, Apple (AAPL) faced scrutiny over iPhone demand. As such, the S&P also ended with a steep loss, and the Nasdaq fared the worst of its peers, with drug stocks taking a hit after President Donald Trump said he's considering suing pharma companies over the opioid epidemic. In response, Wall Street's "fear gauge," the VIX, shot 20% higher for its biggest one-day gain since Feb. 5.
Continue reading for more on today's market, including:
- Buy these 3 bank stocks before the Fed meeting.
- The surging retail stock with room to run.
- Twitter stock is feeling the Facebook fallout.
- Plus, predictions of a steep Tesla drop; the biotech surging ahead of earnings; and an Apple supplier in trouble.
The Dow Jones Industrial Average (DJI - 24,610.91) finished 335.6 points, or 1.4%, lower. Today saw just Boeing (BA) close in positive territory, with a 0.4% gain. Caterpillar (CAT) was the worst of the other 29, shedding 2.8%.
The S&P 500 Index (SPX - 2,712.92) lost 39.1 points, or 1.4%. The Nasdaq Composite (IXIC - 7,344.24) gave back 137.7 points, or 1.8%.
The Cboe Volatility Index (VIX - 19.02) finished 3.2 points, or 20.4%, higher.
5 Items on Our Radar Today
- According to sources, Dropbox's initial public offering (IPO) is oversubscribed ahead of Thursday's offering. The stock will start trading on the Nasdaq on Friday, and the company is expected to be valued at roughly $7 billion. (Reuters)
- Walmart (WMT) is expanding Handy's, its installation and assembly service, to more than 2,000 stores. The option can be purchased at checkout and will schedule the assembly of items such as furniture and televisions. (CNBC)
- Goldman: Expect steep losses for Tesla stock.
- Why Arcadia Biosciences (RKDA) stock is soaring before earnings.
- The Apple supplier in danger of losing its golden goose.
Data courtesy of Trade-Alert
Oil Slips, Gold Rebounds
April-dated crude futures fell 28 cents, or 0.5%, to end at $62.06 per barrel, driven lower by the broad-market sell-off and signs of surging American output.
Gold futures for April delivery added $5.50, or 0.4%, to close at $1,317.80 an ounce. A weaker dollar and free-falling equities boosted demand for the safe-haven asset ahead of the Fed's likely interest rate hike on Wednesday.