Market Recap

Dow Jones Industrial Average Crumbles With Crude; Fed Fails to Inspire

Domestic stockpiles hit their loftiest level on record

by 1/28/2015 4:25:37 PM
Stocks quoted in this article:

The Dow Jones Industrial Average (INDEXDJX:DJI) shot higher out of the gate, with help from a well-received earnings report from blue-chip component Boeing Co (NYSE:BA). However, these upbeat quarterly results couldn't save the DJI from a steep supply-related sell-off in crude -- or another call to be "patient" from the Federal Open Market Committee (FOMC) -- and by the close, the 30-stock index was staring at its second consecutive triple-digit loss. It was a similar set-up elsewhere on the Street, as well, with the Nasdaq Composite (COMP) surrendering early gains, and the S&P 500 Index (SPX) testing support atop the highly watched 2,000 mark.

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

The Dow Jones Industrial Average (DJI - 17,191.37) traded in a nearly 300-point range today, before eventually closing down 195.8 points, or 1.1% -- near its session low. Twenty-seven of the Dow's 30 components finished in the red, led by Chevron Corporation's (NYSE:CVX) 4.2% plunge. BA paced the three advancers with its 5.4% pop.

The S&P 500 Index (SPX - 2,002.16) was up nearly 13 points at its intraday high, before settling with a 27.4-point, or 1.4%, loss. Meanwhile, a big earnings beat for AAPL couldn't help the tech-rich Nasdaq Composite (COMP - 4,637.99) from giving back 43.5 points, or 0.9%.

The CBOE Volatility Index (VIX - 20.44) jumped 3.2 points, or 18.7%, to settle above the round-number 20 mark for the first time since Jan. 16.



5 Items on Our Radar Today:

  1. The Federal Open Market Committee (FOMC) wrapped up its first two-day policy setting meeting of the year today, pledging to be "patient" in regard to interest-rate hikes, as inflation levels continue to churn below the Fed's 2% target. However, in a released statement, the central bank said, "Economic activity has been expanding at a solid pace ... Labor market conditions have improved further, with strong job gains and a lower unemployment rate." All 10 members voted in favor of today's policy statement -- the first time a unanimous vote has been cast since June. (Bloomberg)
  2. The Energy Information Administration (EIA) said domestic crude inventories soared by nearly 9 million barrels last week to 407 million -- the highest level on record. The consensus forecast was for a more modest rise of 4 million barrels. The news -- as well as a dreary outlook on oil from Goldman Sachs -- sent liquid gold tumbling to a nearly six-year low. (Reuters)
  3. Merger-and-acquisition-related rumors hit the Street in force today, impacting the price action -- and options activity -- of Advent Software, Inc. (NASDAQ:ADVS), Lifelock Inc (NYSE:LOCK), and Sunedison Inc (NYSE:SUNE) to name a few.
  4. Wall Street was quick to weigh in on Freeport-McMoRan Inc (NYSE:FCX) following its dismal turn in the earnings confessional.
  5. How one Under Armour Inc (NYSE:UA) trader got crafty with his long put spread.

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

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