Global markets staged a wild ride on Wednesday amid fears of cratering oil prices and slowing worldwide growth, extending a turbulent streak that has wiped out more than $2 trillion this year in value from American companies.
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After a late recovery, the Dow closed down 249.28 points, or 1.6 percent, to 15,766.74.
Tokyo’s Nikkei 225 lost 2.4 percent to 16,017.26 and South Korea’s Kospi inched down 0.3 percent to 1,840.53. The Dow was up 272 points shortly after noon, which would have canceled out Wednesday’s loss.
ENERGY KEEPS FALLING: Energy stocks were pelted.
Energy companies led the way down today. Frontier Communications added 11 cents, or 2.8 percent, to $4.05.
Stocks are having their worst start to a year in history in part because of a rapid plunge in the price of oil. On Wednesday benchmark USA crude gave up $1.43, or 5 percent, to $27.03 a barrel in NY. Brent crude, a benchmark for global oils, rose $1.52 to $30.78 a barrel in London.
Energy stocks recovered some ground early Thursday as the price of crude oil stabilized. The Standard & Poor’s 500 index, a broader look at the market, slipped 1 percent, and the tech-heavy Nasdaq Composite turned heavy losses into a comeback, posting a gain of less than 1 percent.
STIMULUS HOPE: European Central Bank chief Mario Draghi cheered investors by saying the bank is prepared to take action as early as its next meeting in March to expand existing stimulus efforts. It was USA oil’s lowest since May 2003.
The Fed has hinted that it expects to raise US interest rates four times in 2016 after doing it in December for the first time in nearly a decade. Visit MarketWatch.com for more information on this news.
SPIRIT RISES: Spirit Airlines said its profit margins will be stronger than expected and costs for aircraft rent, maintenance and other items will be smaller.
Japan’s Nikkei fell 3.7 percent and is down more than 20 percent from its June peak. Europe’s Stoxx 600 index tumbled more than 3 percent, while shares in Hong Kong dove sharply to three-year lows. Pipeline company Kinder Morgan rose $1.87, or 15.6 percent, to $13.88.
BUYING MOOD: Consumer stocks also gained ground. China’s Shanghai Composite sank 3.2%. Bank of America shares fell 55 cents, or 3.9 percent, to $13.69.
Union Pacific’s fourth-quarter profit and revenue fell far short of Wall Street estimates. Its stock climbed 80 cents, or 2 percent, to $40.10. Consol Energy and Southwestern Energy each soared 19%. Heating oil jumped 5 cents, or 5.6 percent, to 91 cents a gallon. At the end of 2015 it stood at 2.3 percent.
SALLIE MAE-OK: Student loan company SLM Corp., or Sallie Mae, reported a larger than expected profit in the fourth quarter. Britain’s FTSE 100 sank 2.9 percent to 5,703.84.
Wholesale gasoline dipped to $1.018 a gallon. Natural gas picked up 2 cents to $2.138 per 1,000 cubic feet. The euro fell to $1.0907 from $1.0923.
CURRENCIES: The dollar fell to 116.41 yen from 117.44 yen late Tuesday.
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Advancing issues outnumbered declining ones on the NYSE by 2,003 to 1,075, for a 1.86-to-1 ratio on the upside; on the Nasdaq, 1,508 issues rose and 1,292 fell for a 1.17-to-1 ratio favoring advancers.
