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Dow tumbles 362 points as health care stocks drag on Wall Street

Dow tumbles 362 points as health care stocks drag on Wall Street

On the earnings front, analysts expect S&P 500 earnings growth of 13.2 percent, up from 12 percent a month ago. Such an inverted curve has occurred four times in the past year and all coincided with market bottoms.

The Dow Jones Industrial Average slipped 362 points to 26,076, recovering slightly after falling as much as 411 points.

Healthcare-related stocks dragged the major indexes down on news that, Berkshire Hathaway and JPMorgan Chase will form a healthcare company with a view to controlling costs for their US employees.

UnitedHealth Group was the heaviest drag on the Dow, down 4.3 percent. The S&P 500 index closed down 1.1% at roughly 2,822, while the Nasdaq Composite Index ended the day off 0.9% at around 7,400.

The CBOE Volatility index, widely considered the best fear gauge in the stock market, rose 6.86 percent to 14.79. Trump is expected to focus on trade and the economy, among other themes. They had risen about 2 percent in premarket trading after the company's quarterly results and full-year forecasts beat expectations.

The Nasdaq is up 563.11 points, or 8.2 percent. Harley-Davidson dropped 7.7 percent after the motorcycle maker forecast a drop in shipments this year.

Health care was the worst-performing sector in the S&P, a selloff driven by news that JPMorgan Chase (NYSE:JPM), Berkshire Hathaway (NYSE:BRKA) and (NASDAQ:AMZN) are teaming up to address rising medical costs for employees. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy.



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