Dow Jones Industrial Average, Oil Rocked By Historic Shanghai Sell-Off

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Jul 27, 2015 at 4:21 PM
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The Dow Jones Industrial Average (DJIA) took its cues from China, where stocks suffered their worst session in more than eight years. The blue-chip barometer dropped triple digits out of the gate, and crude prices slid amid growing concerns about Chinese demand. Even a stronger-than-expected report on durable goods was viewed with a glass-half-empty skew, as Wall Street hunts for rate-hike clues ahead of this week's key Fed meeting. Against this backdrop, the Dow sank deeper into the red for 2015, while the CBOE Volatility Index (VIX) -- otherwise known as the market's "fear gauge" -- was jolted higher.

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

The Dow Jones Industrial Average (DJIA - 17,440.59) was down almost 170 points at its session low, but eventually settled on a loss of 128 points, or 0.7% --  its lowest close since Feb. 2. Intel Corporation (NASDAQ:INTC) paced the five advancing blue chips, adding 1%, while Boeing (NYSE:BA) led the declining majority with a 2.1% drop.

The S&P 500 Index (SPX - 2,067.64) gave up 12 points, or 0.6%, but found a foothold atop its 200-day moving average. The Nasdaq Composite (COMP - 5,039.78) was hit hardest, sinking nearly 49 points, or 1%.

The CBOE Volatility Index (VIX - 15.60) surged 1.9 points, or 13.5%, to land north of its 200-day trendline for the first time since July 10.

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5 Items on Our Radar Today:

  1. Orders for durable goods jumped 3.4% last month, the Commerce Department reported -- though the results were skewed by the Paris air show, which triggered a 66.1% surge in aircraft orders. Orders for non-defense capital goods excluding aircraft, viewed as a key metric for business investment, were up 0.9%. (AP, via Yahoo! Finance)
  2. Puerto Rico could miss an Aug. 1 deadline to repay nearly $170 million to Public Finance Corp., according to Victor Suarez, Gov. Alejandro Garcia Padilla's chief of staff. The government is considering a gas tax to raise $400 million to $500 million, and vowed to do everything possible to pay its bills. (CNBC)
  3. Meanwhile, Greece and its international creditors are back at the negotiation table.
  4. The airline issue that surrendered more than half its value today.
  5. 4 China-based stocks that took it on the chin.

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Commodities:

Despite a weaker dollar, crude oil dropped amid heightened concerns about Chinese demand. By the close, September-dated crude was down 75 cents, or 1.6%, at $47.39 per barrel.

On the flip side, traders sought tangible assets in the wake of the global stock rout, pushing August-dated gold $10.90, or 1%, higher to settle at $1,096.40 an ounce.

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