Dow Jones Industrial Average Dives on Dismal Earnings

Why an Apple Earnings Miss Could Be Disastrous

by Karee Venema

Published on Jul 21, 2015 at 12:00 PM

The Dow Jones Industrial Average (DJIA) has surrendered its perch atop the 18,000 mark, plummeting triple digits. Amid a bare economic calendar, earnings continue to dominate headlines -- and the 30-stock index is being dragged down by poorly received reports from Big Blue and a pair of its fellow blue chips. Elsewhere, the broad-market trend lower has the Nasdaq Composite (COMP) retreating from record highs, while gold is extending Monday's steep sell-off. Looking ahead, big-cap earnings will remain in focus over the next several sessions, with results from a number of heavyweights on tap.

 

Continue reading for more on today's market -- and don't miss:

 

 

150721mmc

 

Among the stocks with notable option volume is tech titan International Business Machines Corp. (NYSE:IBM), with the contracts changing hands at seven times the average intraday pace. The stock is off 5.4% at $163.96, after IBM's disappointing revenue number was met a bearish brokerage note. The equity's most active option is the weekly 7/24 165-strike put, which appears to be seeing some sell-to-close activity.

 

One of the top losers on the Big Board -- and the Dow -- is United Technologies Corporation (NYSE:UTX), which is off 7.8% at $101.91 -- set for its worst session since September 2001. This morning, the aerospace issue lowered its full-year forecast for a third time. The stock is now down 11.3% on the year, and on pace for its lowest daily close since last October.

 

One of the biggest decliners on the Nasdaq is home security specialist AlarmCom Hldg Inc (NASDAQ:ALRM). The Wall Street freshman is failing to capitalize on a round of upbeat analyst notes, and was last seen off 5.2% at $17.80. Earlier, however, the stock managed to find a foothold atop its recently formed 10-day moving average.

 

150721alrm

 

The CBOE Volatility Index (VIX) is up 0.3 point, or 2.6%, at 12.57.

 

Today's put/call volume ratio on the SPDR S&P 500 ETF Trust (SPY) is 1.45, with puts outpacing calls. SPY is down 0.8 point, or 0.4%. at $211.75.


A Schaeffer's exclusive!

The Expert's Guide

Access your FREE trading earning announcements before it's too late!


  
 

Partnercenter


NEW! Explore Schaeffer’s Partners' deals and get connected to top online brokerages with deals tailored exclusively for our readers.  Get answers to your questions regarding transfer fees, commission rates, programs and available discounts related to online trading services.

MORE | MARKETstories


With This Lithium Stock, It Will Be Better to Be Too Early Than Too Late
Click to continue to advertiser's site.
American Airlines Drops on Jobs Update
American Airlines said it will reduce management and support staff by 30%
June Kicks Off With Slew of Economic Data
June begins with another round of retail earnings
With This Lithium Stock, It Will Be Better to Be Too Early Than Too Late
Click to continue to advertiser's site.