Dow Jones Industrial Average Falls 333 Points, Into the Red for 2015

Crude took a dive after the EIA downwardly revised its 2015 and 2016 price forecasts

by Karee Venema

Published on Mar 10, 2015 at 4:20 PM
Updated on Jun 24, 2020 at 10:16 AM

It was as if yesterday never happened, with the Dow Jones Industrial Average (INDEXDJX:DJI) surrendering all of Monday's triple-digit gains -- and moving back into the red on a year-to-date basis. There were a handful of factors stoking the day's bearish flames, including a soaring greenback -- which rose to a 12-year high versus the euro -- a sharp decline in crude oil, and growing concern over when the Federal Open Market Committee (FOMC) will raise interest rates. This sell-off spread elsewhere on the Street, as well, with the S&P 500 Index (SPX) -- which gains a new component later this week -- also falling south of its 2015 breakeven mark, while the Nasdaq Composite (COMP) gave back 1.7%.

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

The Dow Jones Industrial Average (DJI - 17,662.94) spent the entire day in the red, eventually settling at its session low -- down 332.8 points, or 1.9%. Twenty-nine of the Dow's 30 components closed lower today, led by a 3.6% plunge for United Technologies Corporation (NYSE:UTX). DuPont (NYSE:DD) was the only blue chip to advance in today's trading, tacking on 0.3%.

It was a similar set-up on the S&P 500 Index (SPX - 2,044.16), which closed right at its intraday low -- off 35.3 points, or 1.7%. The Nasdaq Composite (COMP - 4,859.79), meanwhile, surrendered 82.6 points, or 1.7%.

The CBOE Volatility Index (VIX - 16.69) popped 1.6 points, or 10.8%, to notch a third consecutive close north of its 200-day moving average -- as well as its highest settlement since Feb. 11.

CLOSING SUMMARY – INDICES

CLOSING SUMMARY – NYSE AND NASDAQ

5 Items on Our Radar Today:

  1. In the wake of Friday's stellar payrolls report, the Labor Department's Job Openings and Labor Turnover Survey (JOLTS) showed that there were 5 million job openings at the end of January -- the most in 14 years. Elsewhere on the economic front, wholesale inventories unexpectedly rose. (The Wall Street Journal; CNBC)
  2. In his final speech as president of the Dallas Federal Reserve, noted hawk Richard Fisher said, "The idea that we can substitute a steeper future funds-rate path for an early liftoff seems risky to me. I would rather the FOMC raise rates early and gradually than late and steeply." Fisher will step down from his post later this month after 10 years on the job. (CNBC)
  3. GPRO managed to defy the day's bearish bias, tacking on 2.1%. Options traders responded in kind, betting on the stock to break through this round-number barrier in the near term.
  4. Speculators took decidedly different routes on sector peers Facebook Inc (NASDAQ:FB) and Twitter Inc (NYSE:TWTR).
  5. This retailer rallied to a fresh 52-week peak in the wake of an upbeat earnings report, while this Internet issue sunk after an initial post-earnings uptick.
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 oil got hit by a strengthening dollar and the Energy Information Administration's (EIA) downwardly revised 2015 and 2016 forecasts for crude prices. By the close, April-dated crude was off $1.71, or 3.4%, at $48.29 per barrel.

The dollar's rise sent gold lower -- with the malleable metal erasing all of yesterday's modest gains. At session's end, gold for April delivery was off $6.40, or 0.6%, at $1,160.10 per ounce -- its lowest settlement since November.


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