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Dow Jones Industrial Average Dives on Dismal Earnings

Why an Apple Earnings Miss Could Be Disastrous

Jul 21, 2015 at 12:00 PM
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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:

 

 

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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.

 

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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.

 

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