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Dow Jones Industrial Average Extends Longest Slump in 4 Years

Could the Dow's Losing Streak Mark a Long-Term Bullish Signal?

Aug 7, 2015 at 4:21 PM
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The Dow Jones Industrial Average (DJIA) flirted with a triple-digit loss, as the nonfarm payrolls report stoked expectations for a September rate hike. However, late-breaking investment news centered on blue chip American Express Company (NYSE:AXP) lifted the Dow off its session lows -- though not enough to avoid a seventh straight loss, marking its longest losing streak in four years. Meanwhile, the Nasdaq Composite (COMP) struggled as biotechs sold off yet again. Looking ahead, next week's economic docket is centered on retail data and Fed speeches, as well as Secretary of State John Kerry's scheduled trip to Cuba.

 

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

 

The Dow Jones Industrial Average (DJIA - 17,373.38) was down by more than 140 points at its intraday low, but a late rebound closed the deficit to 46.4 points, or 0.3%. AXP paced a group of eight blue-chip advancers, soaring 6.3%. Of the 22 decliners, Wal-Mart Stores Corp (NYSE:WMT) was the worst off, shedding 2.1%. On a weekly basis, the Dow dropped 1.8%.

The S&P 500 Index (SPX - 2,077.57) slipped 6 points, or 0.3%, to log a weekly loss of 1.2%. The Nasdaq Composite (COMP - 5,043.54) dipped 12.9 points, or 0.3%, for a 1.7% weekly decline.

The CBOE Volatility Index (VIX - 13.39) gave back 0.4 point, or 2.8%. However, for the week, the market's "fear gauge" soared 10.5%.

 

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5 Items on Our Radar Today:

 

  1. The nonfarm payrolls report came up shy of estimates, as U.S. employers added 215,000 jobs in July -- versus a projected 223,000 -- the Labor Department said. On a related note, the unemployment rate held steady at 5.3%, as anticipated. (CNBC)
  2. ValueAct Capital Management has reportedly accumulated a roughly $1 billion, or less than 5%, stake in credit card issue AXP. According to one source, ValueAct sees AmEx as a solid company with growth potential, despite a recent spate of setbacks. (Bloomberg Business)
  3. The catalyst that sent Sunedison Inc (NYSE:SUNE) into another tailspin.
  4. Are Greek shipping stocks really "unscathed"? Find out here.
  5. poorly received earnings report had Groupon Inc (NASDAQ:GRPN) flirting with lows.

 

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Commodities:

 

Crude dropped for a sixth consecutive week, as gas prices rose and the U.S. rig count increased. By day's end, oil for September delivery was down 79 cents, or 1.8%, at $43.87, marking a four-month low. Week over week, liquid gold shed 6.9% -- its biggest drop in four weeks.

 

Gold shrugged off early payrolls-related losses, with the December-dated contract ending on a gain of $4, 0.4%, at $1,094.10 per ounce. On a weekly basis, the malleable metal ticked 0.1% lower. This represents gold's seventh straight weekly decline -- its longest streak since mid-1999.

 

 

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