Dow Extends Losing Streak, Breaches 16,000


Yesterday's better-than-expected manufacturing activity reignited tapering concerns, as investors believe stronger economic data will mean a faster move away from the central bank's accommodative stance. These worries, combined with post-holiday fatigue, drove stocks into the red once again. The Dow Jones Industrial Average (DJI) finished in negative territory for the third consecutive session, and lost its grip on the 16,000 mark, while the S&P 500 Index (SPX) breached its own round-number threshold, the 1,800 level.

Continue reading for more on today's market, including :

    Auto sales spiked in November, Apple Inc. ( AAPL ) confirmed some M&A news, and Twitter Inc (NYSE: TWTR ) lured a group of weekly call players to the options pits.

The Dow Jones Industrial Average (DJI - 15,914.62) was parked in negative territory for the entire session, and touched an intraday low of 15,859.68 during the afternoon hours of trading. By the end, the Dow was down 94.2 points, or 0.6% -- its first daily close below 16,000 since Nov. 20. Exxon Mobil Corporation ( XOM ) led the Dow's nine advancers with a gain of 0.9%, while E I Du Pont De Nemours And Co ( DD ) paced the 21 decliners with a loss of 2%.

The S&P 500 Index (SPX - 1,795.15) also spent the session swimming in red, and fell 5.8 points, or 0.3%, by the close, marking the first sub-1,800 close since Nov. 21. Meanwhile, the Nasdaq Composite (COMP - 4,037.20) finished 8.1 points, or 0.2%, lower.

Conversely, the CBOE Volatility Index (VIX - 14.55) gained ground right out of the gate, and advanced 0.3 point, or 2.3%, for the day, racking up its highest close since Oct. 16.



3 Things to Know About Today's Market :

  • Thanks to Black Friday promotions and incentives, Autodata said overall vehicle sales increased to an annual pace of 16.4 million in November, compared to 15.3 million a year earlier. Among the gainers was General Motors Company ( GM ), which reported a 14% year-over-year jump in sales last month -- marking the manufacturer's strongest November in six years. (USA Today)
  • Apple Inc. ( AAPL ) said it acquired Topsy , a social media and analytics startup, although details of the deal were scant. Meanwhile, the stock traded higher today after receiving some bullish attention at UBS this morning. (Reuters, MarketWatch)
  • Krispy Kreme Doughnuts ( KKD ) revealed a fiscal third-quarter profit of $6.8 million, or 9 cents per share, up from $5 million, or 7 cents per share, in the year-ago period. Meanwhile, revenue rose by 6.7% to $114.2 million. Looking forward, however, the company projected fiscal 2015 earnings that fell shy of analysts' estimates. (MarketWatch)

5 Stocks We Were Watching Today :

  1. Bank of America Corp (BAC) scored a bullish brokerage note this morning after reaching a settlement with Freddie Mac yesterday.
  2. Bullish options activity surged on Las Vegas Sands Corp. (LVS) , particularly on the casino operator's January-dated calls.
  3. Twitter Inc (TWTR) attracted a crop of near-term call players, who bet on a quick pop for the Internet issue by week's end.
  4. Options speculators zeroed in on Tesla Motors Inc (TSLA) , thanks to some upbeat news regarding its model S sedans.
  5. BlackBerry Ltd's (BBRY) Enterprise Server update failed to impress bearish traders, as they scooped up front-month puts.


For a look at today's options movers and commodities activity, head to page 2.



Commodities :

Crude futures advanced again today, bolstered by projections for a decline in oil supplies. By the time the dust settled, the January contract climbed $2.22, or 2.4%, to finish at $96.04 per barrel -- the highest closing price since late October, when comparing most-active contracts.

Conversely, gold futures extended yesterday's losses, with February-dated gold lopping off $1.10, or 0.1%, to end at $1,220.80 per ounce -- once again marking the lowest settlement price for a most active contract since July 5.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

All Rights Reserved. Unauthorized reproduction of any SIR publication is strictly prohibited.

This article appears in: Investing , Options

Referenced Stocks: AAPL , DD , GM , KKD , XOM

Schaeffer's Investment Research

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