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Jan. 18, 2022, 4:58 p.m. EST

Dow ends more than 500 points lower as stocks sink amid rising Treasury yields and a Goldman earnings miss

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By Christine Idzelis and William Watts

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West Texas Intermediate crude for February delivery rose 1.9% Tuesday to settle at $85.43 a barrel, after gaining 6.2% last week.

“I expect energy prices to stay high and that should benefit energy equities this year,” Solem said. The S&P 500’s energy sector /zigman2/quotes/210600058/delayed XX:SP500EW.10 +4.44% ended 0.4% higher Tuesday while the index’s other 10 sectors were all down, FactSet data show.

The U.S. stock market has fallen lately “largely for reasons of psychology,” according to George Ball, chairman of Sanders Morris Harris.

“The market has been fully priced, or even overextended, for well over a year now,” said Ball, in a phone interview Tuesday. Investors are now adjusting the composition of the portfolios partly on “fear of a more aggressive Fed,” whether that proves “economically significant” or not. 

“It’s not the impact of the Fed itself,” he said. “It’s the fear of what an investor thinks other investors will read into the tea leaves.”

Which companies were in focus?

  • In its biggest ever acquisition, Microsoft /zigman2/quotes/207732364/composite MSFT +0.27% said it would pay $95 per Activision /zigman2/quotes/200717283/composite ATVI -0.38% share to create the world’s third-biggest gaming company measured by revenue, behind Tencent and Sony. Microsoft shares fell 2.4%, while Activision surged 25.9%.

  • Other videogame companies also jumped, with Electronic Arts Inc. /zigman2/quotes/206954087/composite EA +0.20% up 2.7% and Take-Two Interactive Software Inc. /zigman2/quotes/204008930/composite TTWO +0.25% closing 1% higher.

  • Shares of Charles Schwab Corp. /zigman2/quotes/201281754/composite SCHW +0.93% fell 3.5% after the online brokerage reported earnings and revenue that came in below Wall Street forecasts .

  • Shares of Plexus Corp. /zigman2/quotes/208217351/composite PLXS +3.29% dropped 8.3% after the electronic manufacturing services company warned that it will miss fiscal first-quarter profit and revenue guidance provided in October because of “unanticipated” supply chain challenges that worsened in the finals weeks of the quarter.

How did other assets fare?

  • The ICE U.S. Dollar Index /zigman2/quotes/210598269/delayed DXY -0.17% , a measure of the currency against a basket of six major rivals, rose 0.5%.

  • Gold futures /zigman2/quotes/210034565/delayed GC00 +0.64% edged 0.2% lower to settle at $1,812.40 an ounce.

  • The Stoxx Europe 600 /zigman2/quotes/210599654/delayed XX:SXXP +1.76% closed 1% lower, while London’s FTSE 100 /zigman2/quotes/210598409/delayed UK:UKX +1.30% fell 0.6%.

  • The Shanghai Composite /zigman2/quotes/210598127/delayed CN:SHCOMP +0.27% rose 0.8%, while the Hang Seng Index /zigman2/quotes/210598030/delayed HK:HSI +0.26% fell 0.4% in Hong Kong and the Nikkei 225 /zigman2/quotes/210597971/delayed JP:NIK +1.47% declined 0.3%.

—Steve Goldstein contributed to this article.

/zigman2/quotes/210600058/delayed
add Add to watchlist XX:SP500EW.10
XX : S&P US
2,206.21
+93.89 +4.44%
Volume: 0.00
July 7, 2022 9:51a
loading...
/zigman2/quotes/207732364/composite
US : U.S.: Nasdaq
$ 266.94
+0.73 +0.27%
Volume: 2.29M
July 7, 2022 10:01a
P/E Ratio
27.80
Dividend Yield
0.93%
Market Cap
$1990.99 billion
Rev. per Employee
$1.06M
loading...
/zigman2/quotes/200717283/composite
US : U.S.: Nasdaq
$ 78.07
-0.30 -0.38%
Volume: 375,870
July 7, 2022 10:01a
P/E Ratio
24.62
Dividend Yield
0.60%
Market Cap
$61.28 billion
Rev. per Employee
$846,633
loading...
/zigman2/quotes/206954087/composite
US : U.S.: Nasdaq
$ 124.60
+0.25 +0.20%
Volume: 120,024
July 7, 2022 10:01a
P/E Ratio
45.02
Dividend Yield
0.61%
Market Cap
$34.80 billion
Rev. per Employee
$543,023
loading...
/zigman2/quotes/204008930/composite
US : U.S.: Nasdaq
$ 125.93
+0.31 +0.25%
Volume: 88,984
July 7, 2022 10:01a
P/E Ratio
35.15
Dividend Yield
N/A
Market Cap
$20.35 billion
Rev. per Employee
$449,391
loading...
/zigman2/quotes/201281754/composite
US : U.S.: NYSE
$ 64.03
+0.59 +0.93%
Volume: 437,325
July 7, 2022 10:01a
P/E Ratio
23.26
Dividend Yield
1.25%
Market Cap
$120.30 billion
Rev. per Employee
$568,413
loading...
/zigman2/quotes/208217351/composite
US : U.S.: Nasdaq
$ 79.15
+2.52 +3.29%
Volume: 6,863
July 7, 2022 9:59a
P/E Ratio
20.38
Dividend Yield
N/A
Market Cap
$2.12 billion
Rev. per Employee
$175,198
loading...
/zigman2/quotes/210598269/delayed
US : U.S.: ICE Futures U.S.
106.92
-0.18 -0.17%
Volume: 0.00
July 7, 2022 9:51a
loading...
/zigman2/quotes/210034565/delayed
US : U.S.: Nymex
$ 1,747.60
+11.10 +0.64%
Volume: 91,310
July 7, 2022 9:51a
loading...
/zigman2/quotes/210599654/delayed
XX : STOXX
414.52
+7.18 +1.76%
Volume: 0.00
July 7, 2022 3:46p
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/zigman2/quotes/210598409/delayed
UK : FTSE UK
7,199.91
+92.14 +1.30%
Volume: 494,959
July 7, 2022 2:46p
loading...
/zigman2/quotes/210598127/delayed
CN : China: Shanghai
3,364.40
+9.05 +0.27%
Volume: 33.44B
July 7, 2022 3:00p
loading...
/zigman2/quotes/210598030/delayed
HK : Hong Kong Exchange
21,643.58
+56.92 +0.26%
Volume: 1.74M
July 7, 2022 4:08p
loading...
/zigman2/quotes/210597971/delayed
JP : Nikkei
26,490.53
+382.88 +1.47%
Volume: 0.00
July 7, 2022 3:15p
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