Why The Dow Tanked Today
U.S. stock markets began the week with a loss today, as mixed news events ultimately failed to buoy stocks. Despite reverting into positive territory late in the afternoon, the Dow Jones Industrial Average (INDEX: ^DJI) shed just more than 20 points by day's end, to end 0.2% lower.
Source: Google Finance
The Dow opened abruptly lower on concerns of diverging opinions from key European leaders Francios Hollande of France, and Angela Merkel of Germany, about forging the much-need banking union to stanch the ongoing European debt crisis. Following the Dow southbound, both the S&P 500 and Nasdaq also posted losses, dropping 0.2% and 0.6% respectively. The market's "fear gauge," or the VIX (INDEX: ^VXX) , rose 1.4% on investor's renewed fears.
Around The Markets
Shares of weight loss drug maker VIVUS (NAS: VVUS) fell a fresh 9.7% today, coming off its sharp fall on Friday. The stock now sits some 20% lower than it did at the beginning of last week. It's coming off a day where the company announced negative commentary from EU regulatory bodies for its Qsymia (Qsiva in the U.S.).
Facebook also took an absolute beating today, falling 9.1% after the investing publication Barron's ran a story opining that the social media powerhouse remains overvalued. The article cited an estimated fair value price for Facebook at around $15 a share.
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The article Why The Dow Tanked Today originally appeared on Fool.com.Andrew Tonner holds no position in any company mentioned. Follow me onTwitterat@Andrew Tonner.The Motley Fool owns shares of Facebook. Motley Fool newsletter services have recommended buying shares of Facebook. Motley Fool newsletter services have recommended creating a bear put spread position in SPDR S&P 500 ETF. The Motley Fool has a disclosure policy.
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