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Tech Tanks Nasdaq; Dow Jones Industrial Average Plunges

Debunking the Apple Death Cross

Aug 20, 2015 at 4:23 PM
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The Dow Jones Industrial Average (DJIA) plummeted out of the gate and never looked back. A continued slump for energy and another down day around the globe -- not to mention an extended rate-hike-timing debate -- pushed stocks lower, with seemingly no sector left unscathed. Media stocks and technology fared the worst, though, with the tech-heavy Nasdaq Composite (COMP) taking the biggest beating among major market indexes. By the time the closing bell mercifully rang, the COMP was sitting south of its 200-day moving average and the round-number 5,000 level, while the Dow was at a 2015 closing low.


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



The Dow Jones Industrial Average (DJIA - 16,990.69) ended at a session -- and year-to-date -- low, down 358 points, or 2.1%. It was the Dow's first finish south of 17,000 since late October. Not one of the Dow's 30 components eked out a win, with Walt Disney Co (NYSE:DIS) leading a media-sector swoon, down more than 6%. 


The S&P 500 Index (SPX - 2,035.73) settled at its lowest close since early February -- and breached its 200-day trendline in the process -- giving up nearly 44 points, or 2.1%. The SPX is now in the red for 2015, down 1.1%. In its worst session in more than a year, the Nasdaq Composite (COMP - 4,877.49) ended at its lowest point since late March, dropping 141.6 points, or 2.8%.


The CBOE Volatility Index (VIX - 19.14) skyrocketed to a new one-month high, surging 3.9 points, or 25.5%. The "fear gauge" has advanced close to 58% in August.






5 Items on Our Radar Today:


  1. Jobless claims rose for a fourth straight week, to the highest level in more than a month. Meanwhile, the Street shrugged off another upbeat round of housing stats, with existing home sales rising to an eight-year peak in July. (MarketWatch) 
  2. Former President Jimmy Carter, 90, said his fate is "in the hands of God" now, admitting that cancer has spread to his brain. (Reuters​)
  3. How this toymaker bucked the bearish bias today.
  4. Worried about your portfolio? Try hedging with put options. 
  5. 3 energy stocks that could be staring at more downside.









After hitting another six-year low in early trading, crude turned higher as Hurricane Danny -- the first of 2015 -- approached, lifting expectations for demand. October-dated crude -- now the front-month contract -- ended a nickel higher at $41.32 per barrel.


Gold surged to a five-week high, capitalizing on post-Fed momentum. By the close, December-dated gold added $25.30, or 2.2%, to sit at $1,153.20 an ounce.


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