Stocks Opened Sharply Lower on Global Growth Worries

U.S. stocks sank at the open on Thursday as doubts regarding the health of the global economy saw investors fleeing to safe haven assets. The Dow Jones industrial average lately fell 220.11 points, or 1.38%, to 15,694.63. The S&P 500 was down 26.09 points, or 1.41%, to 1,825.77. The Nasdaq Composite lost 50.21 points, or 1.17%, to 4,233.38.

Fewer Americans applied for unemployment benefits last week in a sign of a stable job market. Weekly applications for jobless aid fell 16,000 to a seasonally adjusted 269,000, the Labor Department said Thursday.

Oil slid on Thursday, dented by record U.S. crude inventories at the Cushing delivery point, worries about the demand outlook, and as Goldman Sachs said prices would remain low and volatile until the second half of the year. U.S. West Texas Intermediate (WTI) crude futures were at $26.76 per barrel, down 69 cents.

Avon Products Inc. (AVP) reported on Thursday a fourth-quarter loss that widened to $333.4 million, or 76 cents a share, from $330.7 million, or 75 cents a share, in the same period a year ago. Revenue fell 20% to $1.61 billion.

PepsiCo Inc. reported a 31% increase in earnings, helped by cost cuts, but provided a downbeat profit outlook for 2016. The company reported a profit of $1.72 billion, or $1.17 a share, up from $1.31 billion, or 87 cents, a year earlier. For the current year, it expects core earnings of $4.66 a share.

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