Dow Falls 115 as Bulls React to Slowing Data

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"Jobs numbers weren't that impressive, and China's PMI came in below 50 for the 10th month in a row," said Schaeffer's Senior Equities Analyst Joe Bell. "With the market enjoying such a strong run in August, it also makes sense that we would experience a decline like this sooner or later." With that, the Dow Jones Industrial Average (DJI) notched a fourth consecutive loss today, and dipped nearly 125 points at its session low.

Keep reading to see what else was on our radar today:

And now, a look at the numbers...

CLOSING SUMMARY - INDICES

CLOSING SUMMARY - NYSE AND NASDAQ

The Dow Jones Industrial Average (DJI - 13,057.46) was knocked lower for a fourth day in a row today, giving up 115.3 points, or 0.9%, by the closing bell. All but three of the Dow's 30 blue chips ended in the red, as Hewlett-Packard Company's ( HPQ ) 8.2% earnings-related tumble paced the losing issues. Meanwhile, Kraft Foods Inc. ( KFT ) and Pfizer Inc. ( PFE ) gained 0.7% and 0.2%, respectively. AT&T Inc. ( T ) remained unchanged.

Similarly, the S&P 500 Index (SPX - 1,402.08) and Nasdaq Composite (COMP - 3,053.40) parked in negative territory for the day. The SPX turned lower by 11.4 points, or 0.8%, while the COMP declined 20.3 points, or 0.7%.

The CBOE Market Volatility Index (VIX - 15.96) advanced for a fourth consecutive session, adding 5.6% and securing its highest daily settlement since Aug. 7.

Today's highlight : "Housing data continued to be the bright spot within the economy today," noted Bell. "The July home sales came in better-than-expected and home building stocks are holding up pretty well as the overall market lost ground."

Turning to today's major market stories...

For today's activity in commodities, options, and more, head to page 2.

Following two-days of multi-month highs , oil futures backpedaled, as investors took profits and mulled over when, exactly, the Fed will enact monetary easing. By the close, October-dated crude lopped off 99 cents, or 1%, to end at $96.27 a barrel.

On the other hand, gold futures rocketed to their loftiest price since April 12, as weak data out of China and yesterday's report from the September Federal Open Market Committee supported the malleable metal. Gold for December delivery jumped $32.30, or 2%, to land at $1,672.80 an ounce.

Levels to watch in trading...

  • Dow Jones Industrial Average (DJI - 13,057.46) - support at 11,500; resistance at 14,000
  • S&P 500 Index (SPX - 1,402.08) - support at 1,100; resistance at 1,500
  • Nasdaq Composite (COMP - 3,053.40) - support at 2,400; resistance at 3,400

OUTPERFORMING AND UNDERPERFORMING SECTORS

STOCKS - MOVERS

STOCKS - EARNINGS

STOCKS - NOTABLE CALL ACTIVITY

STOCKS - NOTABLE PUT ACTIVITY

SCHAEFFER'S MARKET POSTURE

At the end of every market day, the staff at Schaeffer's Investment Research reviews the trading day in detail, covering major events and key market developments. Don't miss this critical, timely and insightful report. If you enjoyed today's edition of Market Recap, sign up here for free daily delivery straight to your inbox.



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: HPQ , JDSU , KFT , PFE , T

Schaeffer's Investment Research

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