Dow Jones Industrial Average Drops Triple Digits on Ominous ADP Report

The Fed's Beige Book revealed expansion in 11 of 12 districts

Mar 4, 2015 at 4:18 PM
facebook X logo linkedin

The Dow Jones Industrial Average (INDEXDJX:DJI) suffered yet another sizable loss, as traders digested the latest round of economic reports. Data was largely mixed, highlighted by a cautiously optimistic Beige Book and an underwhelming ADP employment report -- which is generally considered a precursor to Friday's nonfarm payrolls report from the Labor Department. Meanwhile, Chicago Fed President Charles Evans made headlines, calling on the central bank to delay interest rate hikes until 2016 due to low inflation.

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

The Dow Jones Industrial Average (DJI - 18,096.90) dropped 106.5 points, or 0.6% -- and breached the 18,100 century level for the first time since Feb. 19 -- to register its second straight loss. Six of the blue-chip index's 30 components finished higher, paced by UnitedHealth Group Inc.'s (NYSE:UNH) 1% win. American Express Company (NYSE:AXP) and Visa Inc (NYSE:V) led the 23 losers, surrendering 1.6% apiece. Chevron Corporation (NYSE:CVX) was flat.

The S&P 500 Index (SPX - 2,098.53) fell below the 2,100 mark, giving back 9.3 points, or 0.4%. The Nasdaq Composite (COMP - 4,967.14) ended 12.8 points, or 0.3%, lower.

The CBOE Volatility Index (VIX - 14.23) snapped its streak of sub-14 finishes, tacking on 0.4 point, or 2.7%.



5 Items on Our Radar Today:

  1. It was a busy data on the economic front. Private employers added 212,000 jobs last month, ADP reported, falling short of expectations. However, the Institute for Supply Management's services index expanded by a wider-than-projected margin in February, helped by higher employment rates and cheaper gas. (Reuters; Bloomberg)
  2. The Fed's Beige book revealed economic expansion in 11 of 12 districts in early 2015, despite daunting levels of precipitation. Generally speaking, the districts saw encouraging levels of consumer spending and manufacturing, while slowdowns within energy services and construction were causes for concern. (USA Today)
  3. Despite hitting a two-year low, Chesapeake Energy Corporation (NYSE:CHK) was mobbed by call buyers.
  4. Option bears continued to jump on FireEye Inc (NASDAQ:FEYE), unfazed by its long-term technical strength.
  5. This group of traders boarded Sunedison Inc's (NYSE:SUNE) bullish bandwagon.

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




After initially ticking lower on reports of an inventory spike, crude sustained its momentum, following an encouraging Beige Book and developments in Saudi Arabia. Specifically, the country reportedly upped its sticker prices for Arab Light crude, while the nation's oil minister said demand is "gradually rising" and prices are "stabilizing." This news offset the largest build since 2001 in U.S. stockpiles, boosting the April-dated contract $1.01, or 2%, to settle at $51.53 per barrel.

Gold gave up ground for a third straight day, as the session's spate of economic reports failed to spook investors and the dollar reached an 11-year high against the euro. Gold for April delivery slipped $3.50, or 0.3%, to close at $1,200.90 per ounce.


Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI