It was one tough day on the stock market as the Dow (^DJI) plummeted 326 points or more than 2%, crossing below the critical 200-day moving average. The S&P 500 (^GSPC) saw dips in all ten sectors and ended the day down more than 2%. The Nasdaq (^IXIC) didn't escape the rough waters of the market either. The tech-heavy index fell 107 points or 2.6%. One cause for the markets' battering was the January ISM manufacturing index, annouced this morning, which slid to an eight-month low, spooking investors.
Individual stocks that had a particularly tough day included Ford (F). Shares fell nearly 3% after the automaker reported a drop of 7.5 percent in total vehicle sales for January missing on analysts expectations for a 2.3 percent decline. Retail sales fell 5 percent. Ford blamed bad weather in some of its largest sales regions for the drop in sales.
Things weren't much better for fellow automaker General Motors (GM) which reported January U.S. sales fell 12 percent, blaming the bad weather as well as a scale back on rental car sales. Shares for the company finished the day down more than 2%.
Toy making giant Mattel (MAT) is taking a licking, with shares finishing the day down almost 5%, after it was downgraded by at least three different research firms. SunTrust, Longbow and B. Riley & Co. all downgraded Mattel to neutral from buy, with each one lowering its price target for the company as well.
Discount men's suit retailer Joseph A Bank (JOSB) finished the day down more than 5% after reports came out that the company is in talks to buy apparel retailer Eddie Bauer. This news comes on the heels of Jos. A Bank rejecting another offer by rival Men's Wearhouse.
Texas based medical device maker ArthroCare Corporation (ARTC) finished the day up over 8% after to was announced it would be being bought by artificial joint maker Smith & Nephew for $1.7 billion in cash. Looking to boost its sports medicine business, Smith & Nephew will pay $48.25 a share in cash, 6.3 percent higher than ArthroCare's Friday closing price.
Shares of pharmaceutical giant Pfizer (PFE) finished the day up less than a perecent after the company announced its experimental breast cancer drug, palbociclib, succeeded in trials improving patient survival rates without worsening their condition. If successful, analysts believe the drug could have annual sales of more than $5 billion.