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Dow plunges nearly 400 points

Thursday, January 07, 2016 - 01:35

The carnage marked the blue chip index's worst start to a year in more than a century. The Nasdaq lost more than 3 percent. Fred Katayama reports.

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Stocks got slammed. The Dow plunging nearly 400 points Thursday, its worst start to a year in more than a century. The Nasdaq lost more than 3 percent. Financial markets around the globe reacted to the market plunge in China, where stock trading was halted for the second time this week. Kevin Kelly of Recon Capital Partners: SOUNDBITE: KEVIN KELLY, CHIEF INVESTMENT OFFICER, RECON CAPITAL PARTNERS: "What is driving the market today is global macro concerns, and we have seen this happen many times over the last year and two years for that matter. I mean if you take a look back to August and September, we saw it was a pretty tumultuous times, given a lot of the same macro concerns." Also hit hard: oil, which at one point slipped below $33 a barrel to near 12-year lows. Oil down about 70 percent since mid 2014. One bright spot: Gold. It hit a nine-week high. Chipotle losing ground. At least six brokerages slashing price targets on the burrito chain a day after the company said it was served with a grand jury subpeona related to a norovirus probe. JC Penney and Macy's stocks both up. Penney reported strong holiday sales. Macy's announced job cuts and store closings on Wedneday. Walgreens Boots stock rose. It missed earnings targets, but investors bought into its higher profit forecast. A day ahead of the December jobs report, weekly jobless claims fell slightly less than expected to 277,000. Red across the board in Europe. Companies that export to China, such as carmakers, and financial stocks with Chinese exposure, hit especially hard.

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Dow plunges nearly 400 points

Thursday, January 07, 2016 - 01:35