Nasdaq enters correction, oil nears $87
The Nasdaq is off 10% after hitting 16,057.44
Wall Street uncertain of Fed’s 2022 rate plans
Advisor Group chief market strategist Phil Blancato, Kaltbaum Capital Management president, and Strategas partner Chris Verrone discuss the stock market amid rate hike uncertainty.
U.S. stocks fell across the board in another choppy session.
The Dow Jones Industrial Average lost over 339 points or 0.96% and the S&P 500 slipped 0.97%.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| I:DJI | DOW JONES AVERAGES | 44173.48 | +303.13 | +0.69% |
| SP500 | S&P 500 | 5957.81 | +9.10 | +0.15% |
| I:COMP | NASDAQ COMPOSITE INDEX | 18969.202388 | -3.22 | -0.02% |
While the Nasdaq Composite lost over 1% slipping into correction terrority, off 10% from its most recent record high.
Nasdaq Composite Record High: 16,057.44
Apple, Amazon and Google posted declines.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| AAPL | APPLE INC. | 228.52 | -0.48 | -0.21% |
| AMZN | AMAZON.COM INC. | 198.38 | -4.50 | -2.22% |
| GOOGL | ALPHABET INC. | 164.91 | -2.73 | -1.63% |
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The 10-year Treasury hovered around 1.84% and oil closed at $86.96 per barrel, an eight-year-high.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| USO | UNITED STATES OIL FUND - USD ACC | 73.20 | +1.18 | +1.64% |
HARVARD ECONOMIST ON HOW LONG PRICES WILL CONTINUE TO SOAR
Financials are in focus with SoFi Technologies Inc. rising over 13% after the Office of the Comptroller of the Currency and the Federal Reserve approved its application to operate as a bank, and it expects to do so next month.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| SOFI | SOFI TECHNOLOGIES | 15.65 | +0.64 | +4.26% |
In earnings news, Bank of America and Morgan Stanley rose after reporting better-than-expected results.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| BAC | BANK OF AMERICA CORP. | 46.46 | +0.40 | +0.87% |
| MS | MORGAN STANLEY | 134.99 | +3.30 | +2.51% |
Dow member UnitedHealth Group posted strong fourth-quarter earnings led by double-digit growth in its Optum division. The largest U.S. health insurer posted fourth-quarter net income on Wednesday of $4.07 billion, or $4.26. Removing one-time benefits and charges, per-share earnings were $4.48, or 18 cents better than expected on Wall Street, according to a survey by Zacks Investment Research. Revenue, at $73.74 billion, also topped expectations.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| UNH | UNITEDHEALTH GROUP INC. | 597.49 | -3.01 | -0.50% |
| PG | PROCTER & GAMBLE CO. | 172.75 | +1.86 | +1.09% |
Procter & Gamble also reported better than expected results even with inflationary pressures.
"We delivered very strong top-line growth and made sequential progress on earnings in the face of significant cost headwinds," President and CEO Jon Moeller said in a release. "These results keep us on track to deliver our earnings outlook and to raise estimates for sales growth, cash productivity and cash return to shareowners."
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| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| UAL | UNITED AIRLINES HOLDINGS INC. | 94.40 | -0.23 | -0.24% |
| DFS | DISCOVER FINANCIAL SERVICES | 174.91 | +2.84 | +1.65% |
In the afternoon, investors will focus on United Airlines and Discover Financial Services.
Following Microsoft's $68.7 billion acquisition of Activision Sony shares fell over fears on remarising competition.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| SNE | NO DATA AVAILABLE | - | - | - |
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| SONY | SONY GROUP CORP. | 19.07 | -0.11 | -0.57% |
Other game-makers remain in focus as speculation mounts over the possibility of more M&A in the sector.
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| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| MSFT | MICROSOFT CORP. | 412.87 | -1.79 | -0.43% |
| ATVI | NO DATA AVAILABLE | - | - | - |
| EA | ELECTRONIC ARTS INC. | 167.97 | +1.26 | +0.76% |
| ZNGA | NO DATA AVAILABLE | - | - | - |
| TTWO | TAKE-TWO INTERACTIVE SOFTWARE INC. | 186.58 | +1.08 | +0.58% |
In economic news, the number of new homes under construction in December rose 1.7% exceeding the stronger-than-expected increase in November to 1.679 million. Permits for future construction were also strong up 1.87% after jumping 3.9% the previous month to the highest since August. Both reads came in better-than-expected.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| TOL | TOLL BROTHERS INC. | 152.36 | +0.45 | +0.30% |
| DHI | D.R. HORTON INC. | 163.54 | +1.70 | +1.05% |
| LEN | LENNAR CORP. | 168.07 | -0.16 | -0.10% |
GOLDMAN SACHS' PROFIT DECLINES BY 13% IN FOURTH QUARTER
In Asia, Japan’s benchmark Nikkei 225 dropped 2.8% to its lowest level since August, Hong Kong’s Hang Seng added 0.1% and China's Shanghai Composite lost 0.3%.
FOX Business' Ken Martin and The Associated Press contributed to this report.