U.S. stocks fell along with oil and cryptocurrency prices, with the Nasdaq weighed down by disappointing results from Netflix, Inc. (NFLX) and investors assessed concerns about rising interest rates.
The Dow Jones Industrial Average (DJIA), S&P 500, and the Nasdaq all fell, with the Dow and S&P heading for their third straight weekly declines. On Jan. 20, the Dow closed nearly 1% lower, after losing gains from a rally earlier in the day. The S&P 500 fell 1.1%, and the Nasdaq lost 1.3%, putting that index further into correction territory—down more than 10% from its November high.
- U.S. stocks fell along with oil and cryptocurrency prices. The Dow Jones is heading for its third straight weekly decline.
- The Nasdaq burrowed deeper into correction territory; Netflix shares plummeted after it reported results that missed subscriber growth forecasts.
- The Conference Board releases its Leading Economic Index for December later this morning.
The Nasdaq is down nearly 5% for the week, putting it on track for its fourth losing week. Netflix reported results that missed forecasts for subscriber growth.
The yield on the 10-year Treasury note hit 1.87% ahead of next week's meeting of Federal Reserve policymakers. The Fed in March is expected to raise rates for the first time in three years, according to economists surveyed by Bloomberg News.
Oil prices have fallen, with light sweet crude just above $84 per barrel. After prices rose to seven-year highs this week, an increase in U.S. crude oil supplies prompted investors to take profits from the rally.
Cryptocurrencies are diving as well. The price of Bitcoin (BTC) is down more than 9% and is now below $39,000. About $147 billion has been wiped off the entire cryptocurrency market, according to data from Coinmarketcap.com.
Later this morning, the Conference Board releases its Leading Economic Index for December. The consensus estimate is for a 0.8% monthly increase, after a 1.1% rise in November. The Conference Board projects a 6% growth rate for fourth quarter 2021 gross domestic product (GDP) and 3.5% for 2022.
Today's Headlines: Quick Hits
Netflix shares sank 20% in pre-market trading after the company reported that subscriber growth is slowing, forecasting just 2.5 million new global subscribers for its first quarter. Netflix also warned that increased streaming competition is a concern.
The CEO of Peloton Interactive, Inc. (PTON) is disputing a CNBC report that it is halting production of bikes and treadmills that sent Peloton's stock price tumbling over 23%. After the report, Peloton said that its fiscal second quarter revenue will be within its previously forecast range, but Peloton CEO John Foley warned staff of layoffs and changes to production.
Intel Corporation (INTC) plans to invest at least $20 billion in a U.S. chip facility. The computer chip maker says that the Ohio facility will create around 3,000 jobs.
TikTok is testing a paid subscription model. The popular video-sharing app said that the plan would allow creators to charge people to view their content.
Shares of PPG Industries, Inc. (PPG) fell 3% after the paint maker reported that pandemic-related "disruptions" will affect production and sales. The company said that it will increase prices to offset the soaring costs.
CSX Corporation (CSX) shares are falling sharply after the railroad company reported its latest results. CSX earnings and sales growth are seen slowing for the second straight quarter amid falling rail freight volumes.
JPMorgan Chase & Co. (JPM) CEO Jamie Dimon is getting a $3 million raise to $34.5 million in 2021. The bank recently reported that its net income rose to $48 billion, a 66% increase from 2020.
Tech Antitrust Bill Advances: The Big Story
The U.S. Senate Judiciary Committee has approved a bill that would bar tech giants like Apple Inc. (AAPL) and Amazon.com, Inc. (AMZN) from giving preference to their own businesses on their websites. The move comes after heavy lobbying from top executives like Apple CEO Tim Cook. Big tech companies like Meta Platforms, Inc. (FB) and Apple have been under pressure in Congress because of allegations they abused their market power.
Lawmakers voted on an amended version of a bill introduced by Democratic senator Amy Klobuchar and Republican senator Chuck Grassley. The new version expands the definition of companies covered by the bill to include firms like video app maker TikTok and specified that companies were not required to share data with firms that the U.S. government considers national security risks.
The bill still has to be adopted by the full Senate and the House of Representatives. The White House has yet to weigh in on the measure.