DECEMBER 14, 2018
DAILY INSIGHTS FOR INVESTORS
The Story Behind the Dow's 496-Point Drop
A week in which the market mostly held its ground despite sickening turbulence ended with a gut punch. All the major indices cratered Friday on a mix of macroeconomic and single-stock news. U.S. stocks were clipped by international worries -- but rather than tariffs, disappointing economic data out of China and Europe weighed heavily on sentiment. Meanwhile, Johnson & Johnson (JNJ) was battered by 10.0% to lead the Dow lower following a Reuters report alleging that J&J knew for decades that its baby powder contained asbestos. And fellow Dow component Walgreens (WBA) lost 4.4% after a Goldman Sachs analyst cut the stock to Sell on doubts about its growth initiatives. The industrial average slumped 2% to 24,100 -- its lowest close since May -- putting it into correction territory (a drop of 10% or more from a peak).
DAILY INSIGHTS FOR INVESTORS
The Story Behind the Dow's 496-Point Drop
A week in which the market mostly held its ground despite sickening turbulence ended with a gut punch. All the major indices cratered Friday on a mix of macroeconomic and single-stock news. U.S. stocks were clipped by international worries -- but rather than tariffs, disappointing economic data out of China and Europe weighed heavily on sentiment. Meanwhile, Johnson & Johnson (JNJ) was battered by 10.0% to lead the Dow lower following a Reuters report alleging that J&J knew for decades that its baby powder contained asbestos. And fellow Dow component Walgreens (WBA) lost 4.4% after a Goldman Sachs analyst cut the stock to Sell on doubts about its growth initiatives. The industrial average slumped 2% to 24,100 -- its lowest close since May -- putting it into correction territory (a drop of 10% or more from a peak).