Updated 4:30 p.m. ET
January 15, 2016
Stocks slammed down hard Friday. The Dow Jones Industrial Average dropped 2.4% to 15988.08. It was the first time the Dow fell below 16000 since September 29. The S&P 500 lost 2.3% and the Nasdaq fell 2.7%. The Dow and S&P 500 are both now down more than 8% this year, and the Nasdaq is down more than 10%. The 10-year Treasury fell below 2%. U.S. crude oil fell nearly 5%, settling under $30/barrel.
Here’s what else you need to know:
French drug trial goes horribly wrong. One person has been left brain dead and five more are hospitalized in France after an early stage clinical trial for a new drug. Four of the patients may be permanently disabled with neurological damage. The drug is a painkiller meant to treat anxiety and motor disorders. CNN
12 Marines missing off Hawaii. Two CH-53 helicopters collided during a training off the coast of Oahu. The U.S. Coast Guard is searching for survivors. CNN
Economic data might not be as bad as you think. Industrial production dropped 0.4% in December, more than the expected drop of 0.2%. But the slowdown was weather-related and a result of lower gas prices. December retail sales came in weaker than expected (down 0.1% vs expectations for unchanged). But November was revised to up 0.4% from up 0.2%. And producer prices may have decreased 0.2% (as expected) but final demand remains robust. Calculated Risk/@georgepearkes
Wikipedia to launch $100 million endowment. The Wikimedia Foundation is starting a new endowment in hopes of better securing its future. The Wikimedia Endowment aims to raise $100 million in the next 10 years. Wikipedia is celebrating its 15th birthday. Business Insider
BlackRock reports 6% profit rise. The world’s largest asset manager reported earnings of $5.11 per share on net income of $861 million in the fourth quarter. Reuters
Banks getting clobbered even as Citicorp beats earnings estimates. Wells Fargo report was mixed. Citi slumped more than 5% beat on both earnings and revenue while Wells Fargo edged down 3% after reporting flat earnings on a small revenue gain. Are investing saying farewell to higher rates and better margins for banks? CNBC
Wal-Mart to close 269 stores, 154 in U.S. The stores account for less than 1% of revenue and mostly include Wal-Mart Express stores, which are smaller format. ABC News
GOP debate turns into Trump-Cruz wrestling match. Seven of the still-running Republican presidential candidates took the stage in South Carolina Thursday night just two days after President Barack Obama’s final State of the Union. On the agenda: Ted Cruz’s Canadian birth and Donald Trump’s “New York values.” CNN
Militants take African Union military base in Somalia. Islamist group Al-Shabab overtook the AU camp outside of el-Ade, killing more than 60 Kenyan soldiers. BBC
Fed to hike rates three times in 2016, economic outlook subdued: poll. The Federal Reserve will raise interest rates only three times this year as it faces a more subdued outlook for both the U.S. and world economies, a Reuters poll of economists found. Reuters
You won’t believe this…
Everybody wants to cuddle. A Virginia farm was so overrun with applications of volunteers wanting to cuddle newborn goats that it won’t be able to accommodate them all. The farm posted an ad online seeking goat snugglers willing to play, feed, and love the new kids in four-hour shifts February through March. Huffington Post
Invest in purses, not stocks. According to Baghunter the average annual return for the rare and highly sought Birkin bag is 14.2%- outpacing the S&P 500 (8.7%) and gold (-1.5%) over the last 35 years. Quartz
Photo: SteFou