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Dismal Earnings Drag Dow Jones Industrial Average South of 17,000

AMZN and V were among the most notorious earnings culprits

by 7/25/2014 4:20:12 PM
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The Dow Jones Industrial Average (DJI) fell triple digits right out of the gate today, dragged lower by dismal sales guidance from Visa Inc (NYSE:V). Things weren't much better on the tech side, with, Inc. (NASDAQ:AMZN) suffering a 10% swoon after confessing to a steeper-than-expected quarterly loss. Against this backdrop, an encouraging report on durable goods did little to sway the Street, with the Dow giving up its perch atop 17,000, and the S&P 500 Index (SPX) backing down from record highs.

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The Dow Jones Industrial Average (DJI - 16,960.57) gave up 123.23 points, or 0.7%, by the time the dust settled, as 23 of its 30 components ended in the red. V led the charge with a 3.6% drop, while Cisco Systems, Inc. (NASDAQ:CSCO) and Verizon Communications Inc. (NYSE:VZ) led the advancing elite with gains of 0.5% apiece. Intel Corporation (NASDAQ:INTC), meanwhile, finished flat. For the week, the Dow lost 0.8%.

The S&P 500 Index (SPX - 1,978.34) backpedaled 9.6 points, or 0.5%, all but wiping out its weekly advance. The Nasdaq Composite (COMP - 4,449.56) suffered a similar fate, shedding 22.6 points, or 0.5%, but maintaining a weekly gain of 0.4%.

The CBOE Volatility Index (VIX - 12.69) surged 0.9 point, or 7.2%, climbing back atop the 12 level. The "fear barometer" added 5.2% on the week.



5 Items on Our Radar Today:

  1. Orders for durable goods rose by a bigger-than-expected 0.7% last month, the Commerce Department reported, citing increased demand across most fronts. Core capital goods -- which excludes non-defense items -- jumped 1.4% in June, nearly tripling the consensus estimate. (Reuters, via CNBC)
  2. In geopolitical news, the Pentagon said a move by Russia to provide heavier, more powerful artillery systems to Ukrainian separatists is "imminent," and deemed Moscow directly "culpable" for shooting down the Malaysia Airlines passenger jet. Elsewhere, intelligence suggesting a possible terrorist plot has Norway on high alert. (MarketWatch; Bloomberg)
  3. McDonald's Corporation (NYSE:MCD) option players weren't deterred by expired meat .
  4. The brokerage firm weighed in on Nokia Corporation (ADR) (NYSE:NOK) post-earnings.
  5. Micron Technology, Inc. (NASDAQ:MU) option bulls played it safe.

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

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