Dow Jones Industrial Average Continues Losing Streak; Nasdaq Pops

Is Tesla Ripe for Upgrades? Plus, 3 Stocks at Risk for Downgrades

by Alex Eppstein

Published on Aug 5, 2015 at 4:18 PM

The Dow Jones Industrial Average (DJIA) started decisively higher before turning tail around midday, ultimately resolving to the downside. Throughout the day, traders digested disappointing blue-chip earnings, an ongoing sell-off in crude, new gold lows, and mixed rate-hike remarks from a pair of Fed officials. In addition, the Street weighed upbeat numbers out of the services sector against a weaker-than-expected ADP employment report. On a percentage basis, the Nasdaq Composite (COMP) significantly outperformed its peers, helped by another record high from Netflix, Inc. (NASDAQ:NFLX).

 

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

 

 

The Dow Jones Industrial Average (DJIA - 17,540.47) gave up a triple-digit lead to end 10.2 points, or 0.1%, lower -- its fifth-straight loss. Nevertheless, 19 of the Dow's 30 components finished higher, led by 2.6% gain at UnitedHealth Group Inc (NYSE:UNH). Walt Disney Co (NYSE:DIS) led a group of 10 decliners, plummeting 9.2% on weak revenue results. Exxon Mobil Corporation (NYSE:XOM) was unchanged.

The S&P 500 Index (SPX - 2,099.84) added 6.5 points, or 0.3%, but fell shy of the round 2,100 level. The Nasdaq Composite (COMP - 5,139.94) muscled 34.4 points, or 0.7%, north, snapping a three-day losing streak.
 
The CBOE Volatility Index (VIX - 12.51) panned an annual low of 10.88 out of the gate, and ended on a loss of 0.5 point, or 3.8%.

 

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5 Items on Our Radar Today:

 

  1. Experts "conclusively confirmed" that debris found on the Indian Ocean's Reunion Island belonged to the missing Malaysian MH370 jetliner. Authorities have been searching for the plane since March 2014, when it disappeared within minutes of takeoff. (CBS)
  2. Ahead of Friday's highly anticipated jobs report, payroll processor ADP said private companies added 185,000 jobs in July -- fewer than the 215,000 new positions estimated by analysts. Elsewhere, service sector activity rose to its highest level in a decade, while the international trade deficit increased more than projected. (CNBC; Reuters, via CNBC)
  3. While these two stocks took flight on earningsthis duo collapsed.
  4. The Wall Street newbie that failed to pop on its first day of trading.
  5. Puts flew off the shelves as Chesapeake Energy Corporation (NYSE:CHK) flirted with lows.

 

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Commodities:

 

Crude stumbled following a surge in gasoline stockpiles -- and despite a bigger-than-expected drop in crude inventories. By day's end, September-dated futures were off 59 cents, or 1.4%, at $45.15 per barrel -- a five-month low.

Gold closed at a nearly five-year low, pressured by a strengthening dollar and fears of a September interest-rate hike -- stoked by strong numbers out of the services sector. The December-dated contract dropped $5.10, or 0.5%, to settle at $1,085.60 per ounce.

 


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