Looping stitches can be caused by a few different factors.
Make sure that your machine is threaded correctly. If the top thread or bobbin thread is improperly threaded it can cause looping stitches. If your machine is threaded correctly, check the thread tension.
Loose thread tension will create loose loops of thread that can cause the needle to catch and create more of a mess. If you are not sure how to tension your thread check your manufacturers book that came with your machine.
Always be sure to check your needle. A damaged, old or loose needle can cause a number of embroidery problems.