Schaeffer's Top Stock Picks for '25

Dow Sinks 291 Points; Microsoft, Caterpillar Earning Misses

A weaker dollar propped up oil and gold

Jan 27, 2015 at 4:26 PM
facebook X logo linkedin


The Dow Jones Industrial Average (INDEXDJX:DJI) kicked off the session with a triple-digit drop and never looked back. The bearish stars aligned as a basket of blue chips unveiled unimpressive earnings reports -- led by disappointments from Microsoft Corporation (NASDAQ:MSFT) and Caterpillar Inc. (NYSE:CAT) -- and selling pressure was exacerbated by a surprise drop in durable goods orders. In after-hours action, traders are digesting the latest numbers from Apple Inc. (NASDAQ:AAPL), and biting their nails ahead of tomorrow's Federal Open Market Committee (FOMC) policy statement.

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

The Dow Jones Industrial Average (DJI - 17,387.21) was down more than 390 points at its intraday low, and gave up 291.5 points, or 1.7%, by the time the bell mercifully sounded. Just United Technologies Corporation (NYSE:UTX) settled north of breakeven, eking out a 0.4% gain, while MSFT led the 29 declining equities with a 9.3% drop.

The S&P 500 Index (SPX - 2,029.55) traveled a similar path, shedding 27.5 points, or 1.3%. The tech-rich Nasdaq Composite (COMP - 4,681.50) fared the worst of its peers, surrendering 90.3 points, or 1.9%.

The CBOE Volatility Index (VIX - 17.22) soared 1.7 points, or 11%.

CLOSING SUMMARY – INDICES

CLOSING SUMMARY – NYSE AND NASDAQ

5 Items on Our Radar Today:

  1. Orders for durable goods unexpectedly fell 3.4% in December, compared to expectations for a 0.1% uptick. On the flip side, consumer confidence jumped to its highest point since August 2007 in January, according to the Conference Board's consumer confidence index. (MarketWatch)
  2. Single-family home price growth dipped to a two-year low in November, per the S&P/Case-Shiller index, though the report arrived in line with expectations. Specifically, the 20-city index rose 4.3% year-over-year, marking the slowest rate of appreciation since October 2012. (Reuters)
  3. NFLX sat out the sell-off, triggering a wave of bullish options action.
  4. Likewise, GPRO took the road less traveled, and one trader constructed a cautiously optimistic spread.
  5. Analysts responded to unimpressive guidance from Peabody Energy Corporation (BTU) and Dunkin Brands Group Inc (DNKN).
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:

A softer greenback translated into a rebound for dollar-denominated crude, with the commodity snapping its three-day skid ahead of tomorrow's weekly inventories report. By the close, March-dated crude added $1.08, or 2.4%, to settle at $46.23 per barrel.

Gold also gained ground on the heels of a weaker dollar, and as traders sought "safe haven" investments in the wake of a sell-off in equities. Ahead of tomorrow's policy statement from the Fed, gold for February delivery tacked on $12.30, or 1%, to end at $1,291.70 an ounce.

 
 

You have the chance to join one of Bernie's most exclusive programs, complete access at HUGE savings!

As we prepare for a new administration to take the reins in Washington, the near-term market landscape is rife with uncertainty.

The Federal Reserve has already hinted at the turbulence ahead, lowering its interest rate outlook for 2025.

Meanwhile, breakthroughs in artificial intelligence (AI), quantum computing, and other transformative sectors have unlocked incredible profit potential.

But these opportunities are fleeting, and timing is everything. That's where Quick-Hit Trader comes in.

Quick-Hit Trader is designed for precision and speed, getting you in and out of the market in a flash. While other investors scramble to navigate volatile conditions, you'll have access to expertly curated trades that leverage these rapid shifts to deliver explosive profits in short order.

This is your chance to capitalize on the fast-moving market like never before. Are you ready to make your move?