China's currency decision had the DJIA lower from the start
China's decision to devalue the yuan had the Dow Jones Industrial Average (DJIA) trading lower from the start, following Monday's strong showing -- with the blue-chip index down more than 262 points at its intraday low. Also reacting to the news from China was crude, which nearly closed below $43 per barrel, still settling at its lowest point in six years. Today's sell-off came even as Greece finalized bailout terms with its creditors. Among individual equities, Dow component Apple Inc (NASDAQ:AAPL) slid 5.2% to notch its lowest close since Jan. 27, after one brokerage firm soured on the iPhone parent.
Continue reading for more on today's market, including:
- For the first time in four years, the Dow experienced a "death cross," but is it really a bad omen?
- 3 drugmakers that made big post-earnings moves.
- Options traders are expecting a larger move than normal for this retailer, after it posts earnings tomorrow morning.
- Plus ... Greece makes it official, yuan devaluation hits stocks, and how you can trade like Wall Street's elite.
The Dow Jones Industrial Average (DJIA - 17,402.84) wallowed in the red throughout the day, giving back 212.3 points, or 1.2%, for its eighth loss in nine sessions. Just five of the 30 Dow components ended higher, with Verizon Communications Inc. (NYSE:VZ) having the best day on an 0.8% gain. AAPL's 5.2% drop paced the 25 losers.
The S&P 500 Index (SPX - 2,084.07) wasn't far behind the Dow, falling 20.1 points, or 1%. The Nasdaq Composite (COMP - 5,036.79) took a 65-point, or 1.3%, stumble.
The CBOE Volatility Index (VIX - 13.71) sprung 1.5 points, or 12.1%, to jump back above its 10- and 20-day moving averages.
5 Items on Our Radar Today:
- Greece and its creditors have officially agreed on bailout terms for the fiscally strapped country. However, Greek Prime Minister Alexis Tsipras said he wants the Greek parliament to meet immediately to approve the measures -- in order to receive the first tranche of aid ahead of an Aug. 20 debt deadline. (The Guardian)
- With his 2016 presidential campaign struggling, former Texas Governor Rick Perry has quit paying members of his campaign staff. Perry has reportedly just raised roughly $1 million for his campaign that kicked off last month. (Fox News)
- Several Chinese companies took a hit after the country devalued the yuan, including Alibaba Group Holding Ltd (NYSE:BABA).
- Thought trading stocks with computers was just for the big guys? Not anymore.
- 3 stocks that jumped into the M&A spotlight today.
Commodities:
Crude oil got whacked by China's decision to devalue the yuan, as well as OPEC's increased supply outlook for non-member countries. In fact, with its $1.88, or 4.2%, drop, September crude closed at $43.08 per barrel -- its lowest settlement in over six years.
Gold futures managed a slight gain, as some suggested Chinese investors could flock to safe-have investment amid a volatile equities market and the yuan's devaluation. At the close, December-dated gold was $3.60, or 0.3%, higher at $1,107.70 per ounce, bringing its win streak to four sessions.