Dow Jones Industrial Average Crushed; Oil Skids Lower

Dow Gets Rocked; Plus, a Ray of Hope for Bulls

by Josh Selway

Published on May 26, 2015 at 4:28 PM
Updated on May 26, 2015 at 4:38 PM

It was a miserable start to the week for the Dow Jones Industrial Average (DJIA), which fell to an early triple-digit loss and never recovered. Traders watched as the U.S. dollar surged to eight-year highs against the yen, as several economic indicators came in either in-line or above expectations. As a result, Fed rate-hike worries arose once again. And it wasn't just stocks that took a hit; gold and crude both traded sharply lower. 

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

The Dow Jones Industrial Average (DJIA - 18,041.54) briefly fell below the 18,000 mark and was off well over 200 points at session lows, settling 190.5 points, or 1%, below breakeven for its lowest close since May 7. All 30 of the index's components ended in the red, with Apple Inc.'s (NASDAQ:AAPL) 2.2% drop marking the steepest decline. 

The S&P 500 Index (SPX - 2,104.20) followed the same path, giving back 21.9 points, or 1%. The Nasdaq Composite (COMP - 5,032.75) fared no better, ending with a loss of 56.6 points, or 1.1%. 

The CBOE Volatility Index (VIX - 14.06) added 1.9 points, or 15.9%, to take out its 10- and 20-day moving averages for the first time in eight sessions. 

 

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5 Items on Our Radar Today

  1. Durable goods orders for April fell 0.5%, but still met analysts' expectations. However, a core metric measuring capital spending exceeded estimates. (USA Today
  2. President Barack Obama's executive order on immigration must be delayed, per the ruling of a U.S. Court of Appeals. The order must wait for lawsuits from 26 states, which wish to overturn it, to be resolved. (Bloomberg)
  3. A look in on three casino stocks that got destroyed.
  4. The Time Warner Cable Inc (NYSE:TWC) and Charter Communications, Inc. (NASDAQ:CHTR) deal that stole the headlines
  5. Traders took an interesting approach on Canadian Solar Inc. (NASDAQ:CSIQ)



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Commodities

Crude oil got slaughtered today amid the strengthening U.S. dollar. Crude for July delivery closed $1.69, or 0.8%, lower at $58.03 per barrel -- its lowest settlement in a week. 

Gold futures were also hurt by the stronger dollar. June-dated gold fell to its lowest close in roughly two weeks, losing $17.10, or 1.4%, to finish at $1,186.90 per ounce. 

 


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