Stocks tumbled on Thursday on global growth concerns, as weakness in China manufacturing led to a selloff in emerging markets and riskier assets. The Dow Industrials (^DJI) shed 173 points, the Nasdaq (^IXIC) dropped 0.6%, and the S&P 500 (^GSPC) lost nearly 1%. A report showing China’s manufacturing activity contracted in January hit stocks, and sent treasury prices higher. The yield on the 10-year note, which declines as prices rise, fell to levels not seen since before the Federal Reserve began cutting back its bond-buying program.
On the domestic front, jobless claims rose slightly less than expected last week, according to the Labor Department, but existing home sales also increased less than expected in December to a seasonally adjusted annual rate of 4.87 million, according to the National Association of Realtors. Analysts had expected 4.90 million existing home sales.
Netflix (NFLX) was a bright spot for stocks. Netflix shares soared after the company surpassed expectations for fourth quarter earnings and subscribers, and offered an upbeat outlook for the first quarter.