Dow Jones Industrial Average Stumbles Again to Close Out Horrendous Week

The 26 Most Oversold Stocks

by Josh Selway

Published on Jul 24, 2015 at 4:26 PM

The Dow Jones Industrial Average (DJIA) showed early promise, but was unable to sustain any upward momentum, extending its losing streak to four days. Soft earnings numbers again hurt, exacerbated by lackluster housing data and plummeting commodity prices. All in all, it was a terrible week for the Dow, which slipped 2.9%. There's plenty of market-moving events on next week's schedule, though, when social media powers and the Fed share the spotlight. 

 

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

 

 

The Dow Jones Industrial Average (DJIA - 17,568.53) traded within a 202.8-point range, before finally settling 163.4 points, or 0.9%, lower. Three Dow components managed gains, led by Visa Inc's (NYSE:V) post-earnings surge of 4.3%. Of the 27 losers, DuPont (NYSE:DD) was the worst off, sliding 2.6%. The Dow closed the week 2.9% lower. 

 

The S&P 500 Index (SPX - 2,079.65) spent most of the day lower as well, falling 22.5 points, or 1.1%. The Nasdaq Composite (COMP - 5,088.63) saw similar losses, dropping 57.8 points, or 1.1%. On a weekly basis, the SPX closed 2.2% lower, and the COMP was off 2.3%. 

 

The CBOE Volatility Index (VIX - 13.74) jumped during today's sell-off, notching its highest close since July 14. The "fear gauge" gained 1.1 points, or 8.8%, today, and finished the week 15% higher. 

 

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5 Items on Our Radar Today:

 

  1. Adding to today's disappointing backdrop, new home sales in the U.S. hit a seven-month low. Meanwhile, the Fed accidentally published confidential staff forecasts on key indicators -- normally withheld for five years.  (​Reuters; MarketWatch​) 
  2. After New York City moved to increased its minimum wage to $15 for fast food workers, Dunkin Brands Group Inc (NASDAQ:DNKN) CEO Nigel Travis called the move "absolutely outrageous." The executive said raising the wages will do more harm than good, as companies likely won't hire as many new employees. (CNN Money)
  3. 2 Beijing-based Internet names preparing for the earnings confessional. 
  4. In case you missed it, these hot biotech stocks could see a major cool-down soon
  5. The music streaming stock that upped its outlook. 

 

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Commodities:

 

Crude oil got hit again on worries about a supply glut and demand out of China, with futures falling into bear-market territory. For September delivery, oil dropped 31 cents, or 0.6%, to close at $48.14 per barrel -- a five-year low. For the week, oil ended 5.4% lower. 

 

Gold futures also closed lower on continued rate-hike fears. Gold dated for August fell $8.60, or 0.8%, to hit $1,085.50 per ounce. On a weekly basis, the precious metal gave back 4.1% -- its fifth straight week-over-week drop.


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