Stocks sold off today on a disappointing batch of corporate earnings reports. The Dow brushed off initial optimism from a relatively dovish European Central Bank (ECB) statement and a strong reading on durable goods orders to shed triple digits on another down day for Boeing (BA) and an earnings-induced drop for Dow (DOW) stock. The S&P and Nasdaq also closed lower -- retreating from Wednesday's record highs -- amid post-earning pressure from Facebook (FB) and Tesla (TSLA). Earnings will likely be a main driver in tomorrow's trading, too, as Wall Street reacts to results from FAANG names Alphabet (GOOGL) and Amazon (AMZN).
Continue reading for more on today's market, including:
- Why this big bank stock looks set to slide.
- BAML sees better days ahead for Activision Blizzard.
- How options bulls made a quick profit with this chip stock.
- Plus, the pharma stock hitting new highs; Paysign flashes bull signal; and a rare bull note for Under Armour.
The Dow Jones Industrial Average (DJI - 27,140.98) closed down 129 points, or 0.5%. Dow (DOW) led 18 decliners with its 3.8% loss, while Caterpillar (CAT) paced the 11 advancers with its 2.1% gain. Merck (MRK) was unchanged.
The S&P 500 Index (SPX - 3,003.67) shed 15.9 points, or 0.5%, while the Nasdaq Composite (IXIC - 8,238.54) slumped 83 points, or 1%.
The Cboe Volatility Index (VIX - 12.74) rose 0.7 point, or 5.6%.
5 Items on our Radar Today
- The Trump administration is reportedly planning an executive order aimed at lowering prices for prescription drugs sold to Medicare. The order is rumored to be broader than a previously disclosed plan, and will target Medicare's Plan D, which cost the U.S. roughly $100 billion in 2016 for prescription drug coverage. (Reuters)
- Tesla (TSLA) stock slumped nearly 14% today, after the electric car maker reported a wider-than-expected adjusted loss of $1.12 per share in its second quarter, while revenue of $6.35 billion also missed expectations. Additionally, TSLA said JB Straubel would be leaving his role as chief technology officer. (CNBC)
- The news that had this pharma stock hitting new highs.
- Paysign stock flashed a buy signal after its huge pullback.
- Under Armour received a rare bull note from one brokerage firm.
Data courtesy of Trade-Alert
Oil Prices Stabilize
Oil prices stabilized after Wednesday's sharp drop. Crude for September delivery added 14 cents, or 0.3%, to settle at $56.02 per barrel.
Gold lost ground following a batch of relatively upbeat U.S. economic data. At the close, August-dated gold was down $8.90, or 0.6%, at $1,414.70 an ounce.