Schaeffer's 43rd Anniversary Stock Picks in 2024

Dow Jones Industrial Average Nosedives as Bearish Stars Align

NYSE Halt Sends VIX Soaring; Plus, Apple vs. Fitbit

Jul 8, 2015 at 4:28 PM
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The Dow Jones Industrial Average (DJIA) moved into the red of the gate and never looked back. At its session low, the blue-chip barometer was off almost 281 points -- and marked its lowest settlement since early February. Growing anxiety over Greece's fiscal state and China's free fall stoked the skittish flames, as did a nearly four-hour trading halt on the Big Board. As traders hit the exits, the CBOE Volatility Index (VIX) jumped, and both the S&P 500 Index (SPX) and Nasdaq Composite (COMP) sold off sharply -- the former falling south of its 10-month moving average.

 

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

 

 

The Dow Jones Industrial Average (DJIA - 17,515.42) was down as much as 281 points, before closing with a 261.5-point, or 1.5%, loss -- and at its lowest settlement since Feb. 2. All 30 Dow components finished in the red, paced by AAPL's 2.5% plunge.

 

The S&P 500 Index (SPX - 2,046.69) gave back 34.7 points, or 1.7% -- and closed just 2 points off its intraday low, and in negative year-to-date territory. The Nasdaq Composite (COMP - 4,909.76) fared the worst of its peers, settling down 87.7 points, or 1.8%.
 

The CBOE Volatility Index (VIX - 19.66) surged 3.6 points, or 22.2%, and closed above the critical 19.20 mark for the first time since Feb. 2.

 

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5 Items on Our Radar Today:

 

  1. The minutes from the latest Federal Open Market Committee (FOMC) meeting indicated all but one Fed official needs "to see more evidence that economic growth was sufficiently strong" before raising interest rates. Specifically, members of the FOMC cited instability in Greece and China as major risks. (Bloomberg)
  2. Greece submitted a request to the European Stability Mechanism for a new three-year loan. However, the country failed to include any specifics for a new bailout proposal, saying it will present those tomorrow -- the final deadline imposed by eurozone leaders, who will then make a decision Sunday. (The New York Times)
  3. Early this morning, United Continental Holdings Inc (NYSE:UAL) suspended flights due to a network connectivity error. Shortly after this issue was resolved, the New York Stock Exchange (NYSE) halted trading following a technical glitch of its own. The Big Board eventually reopened after being shuttered for nearly four hours. Both organizations denied hackers were involved, but the fear was enough to send some cybersecurity names higher.
  4. China's turmoil is having a devastating effect on these 2 exchange-traded funds.
  5. Microsoft Corporation (NASDAQ:MSFT) took a hatchet to its payroll.

 

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Commodities:

 

Crude oil closed a fifth straight session lower, after the Energy Information Administration (EIA) showed an unexpected rise in inventories. At the close, August-dated crude was off 68 cents, or 1.3%, at $51.65 per barrel -- its lowest close since April 10.

 

A cooling dollar and a steep sell-off in the equities market sent gold futures rebounding today. At session's end, gold for August delivery was up $10.90, or 1%, at $1,163.50 per ounce.

 

 

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