Dow Jones Industrial Average Dives On Wage Data; Earnings Season On Tap

Earnings season unofficially begins next Monday night with Alcoa Inc (AA)

by Alex Eppstein

Published on Jan 9, 2015 at 4:18 PM
Updated on Apr 20, 2015 at 5:32 PM

The Dow Jones Industrial Average (INDEXDJX:DJI) opened slightly higher today, but quickly headed south in the wake of disappointing wage data. While December job growth and the unemployment rate were both encouraging, they were overshadowed by a surprise decline in hourly wages. By the close, the Dow had suffered a triple-digit loss for the third day in five -- its fifth straight triple-digit move in either direction -- and finished lower on a week-over-week basis. Meanwhile, earnings season unofficially kicks off next Monday evening when Alcoa Inc (NYSE:AA) steps under the spotlight.

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

The Dow Jones Industrial Average (DJI - 17,737.37) traded in the red for almost the entire session, ending on a loss of 170.5 points, or 1% -- and snapping a two-day winning streak. Twenty-five of the Dow's 30 components settled in negative territory, paced by a 2% loss at Chevron Corporation (NYSE:CVX). Cisco Systems, Inc. (NASDAQ:CSCO) led the five blue-chip winners with a gain of 1%. For the week, the Dow surrendered 0.5%.

The S&P 500 Index (SPX - 2,044.81) shed 17.3 points, or 0.8%, finishing with a weekly loss of 0.7%. The Nasdaq Composite (COMP - 4,704.07) gave back 32.1 points, or 0.7%, and was down 0.5% on the week.

The CBOE Volatility Index (VIX - 17.55) bounced back after two consecutive negative sessions, adding 0.5 point, or 3.2%. For the week, however, the market's "fear gauge" pared 1.3% of its value.

CLOSING SUMMARY – INDICES

CLOSING SUMMARY – NYSE AND NASDAQ

5 Items on Our Radar Today:

  1. The highly anticipated payrolls report from the Labor Department was mixed. While the U.S. added far more jobs than expected in December, and the unemployment rate dropped by more than anticipated, the average hourly wage fell by 5 cents per hour, and the labor participation rate dropped to a 37-year low of 62.7%. (CNBC)
  2. The U.S. House of Representatives handily passed the Keystone XL pipeline bill, 266-153, as almost all Republicans and 28 Democrats voted in favor of the legislation. At the same time, the Nebraska Supreme Court overturned a lower court decision that had ruled the pipeline unconstitutional. (CNN)
  3. A closer look at this seven-figure gamble on JCP.
  4. This apparel retailer recently found itself in the bearish crosshairs.
  5. A big rally prompted a rush of bullish betting on Novavax, Inc. (NASDAQ:NVAX).
EARNINGS

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

STOCKS – NOTABLE CALL ACTIVITY

STOCKS – NOTABLE PUT ACTIVITY

Commodities:

Crude finished lower once again, as oversupply and unrelenting production continue to weigh on sentiment. The February-dated contract shed 43 cents, or 0.9%, to land at $48.36 per barrel. Relative to last Friday's close, liquid gold surrendered 8.2% for its seventh straight weekly loss.

Gold snapped back from a two-day losing streak, as traders sought safe-haven investments amid the broad-market downturn. February-dated gold added $7.60, or 0.6%, to settle at $1,216.10 per ounce. Week-over-week, the contract advanced 2.5%.


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