The major indices all fell significantly today as credit worries and record oil prices gave investors reason to sell. The Dow fell by 108 today. The Nasdaq fell by 26 points. The S&P 500 fell by 13 points, or 0.84%.
Oil prices jumped to a new record high, surging by about 3% to finish above $86 a barrel. Tensions on the border of Turkey and Iraq were largely to blame for the spike in crude oil prices. Gasoline and natural gas prices rose today as well.
The energy sector was the only major sector higher on the day today. PetroChina Company Limited (NYSE:PTR) shares surged by more than 9% after announcing it would list on the stock market in Shanghai. Other international energy giants followed higher today. China Petroleum and Chemical Corporation (NYSE:SNP) shares blasted higher by 11.16% on more than 3x their normal volume. CNOOC Limited (NYSE:CEO) shares gained 5.73% today. Most domestic oil companies gained today as well, with Exxon Mobil Corporation (NYSE:XOM) shares gaining 1.43% to hit a new 52 week high today.
Consumer cyclical stocks led the way on the downside today. Auto makers shares were particularly weak. Toyota Motor Corporation (NYSE:TM) fell by 4.01%, while General Motors Corporation (NYSE:GM) lost 3.59%.
Retailers were extremely weak today across the board, continuing their recent slide. Coach Inc. (NYSE:COH) fell by over 5% on double its normal volume today. Kohl's Corporation (NYSE:KSS) lost 3.43%. Bed Bath and Beyond Inc. (Nasdaq:BBBY) lost 2.21% on the day, as specialty retailers showed significant weakness. Whole Foods Markets Inc. (Nasdaq:WFMI) shares dropped by 2.91% as even the grocers were weak today.
Financials were very weak on the day as well after Citigroup Inc. (NYSE:C) posted a 57% drop in third quarter profits. C shares were lower by more than 3% today. American Express (NYSE:AXP) fell by 2.26%. Brokers were a weak group today as well, led on the downside by Lehman Brothers (NYSE:LEH), which lost 3.56%.
Medtronic Inc. (NYSE:MDT) plunged 11.24% on more than 10x its average daily volume after the company announced it would stop distributing defibrillator wires because of concerns that it may lead to deaths.
Today's unease over bad debt stemmed from the news that major banks in the United States will be setting up a fund to help bail out the credit markets. Investors worried, and possibly justifiably so, that the markets have begun to get too optimistic about how quick the credit markets will come back.
Today's volume was decent, but not overly strong to the downside. Down volume bested up volume by about 3 to 1 on both the NYSE and the Nasdaq. Interestingly, new highs barely outpaced new lows on the Nasdaq, while they did so more comfortably at the NYSE.
Tommorrow is a huge day of earnings so the market is sure to be moved by those numbers. Stay tuned this market could get volatile!
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