Dow Jones Industrial Average Decimates Gains in Another Wild Session

The volatility game continued today; the Dow Jones Industrial Average (DJIA) was up by nearly 442 points at its intraday peak -- lifted by stimulus efforts out of China -- but decimated its gains by the close. As such, the Dow extended its massive downturn, and remains on track for its largest monthly percentage drop since February 2009. Elsewhere, on the economic front, traders digested encouraging consumer confidence data against a pair of slightly disappointing housing reports.

 

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

 

• Did the S&P 500 Index (SPX) just flash a historic "buy" signal?
• While the market has taken its lumps in recent days, these 4 stocks have managed to survive.
• The policy news that sparked a big day among solar stocks.
• Plus ... Consumer confidence pops, hedge funds split over stock market, and Twitter Inc's (NYSE:TWTR) latest struggle.

The Dow Jones Industrial Average (DJIA - 15,666.44) plummeted in the final hour of trading, ending 204.9 points, or 1.3%, lower -- its fifth straight triple-digit drop. Just two of 30 blue chips managed daily wins, with Walt Disney Co (NYSE:DIS) and Apple Inc. (NASDAQ:AAPL) each gaining 0.6%. Merck & Co., Inc. (NYSE:MRK) dropped 5.2% to lead the 28 losers.

Surrendering their earlier leads, the S&P 500 Index (SPX - 1,867.62) and Nasdaq Composite (COMP - 4,506.49) slid deeper into correction territory. The SPX dropped 25.6 points, or 1.4%, while the COMP slipped 19.8 points, or 0.4%.

The CBOE Volatility Index (VIX - 36.02) was down as much as 31%, but by day's end had pared its losses to 4.7 points, or 11.6%.

 

 

 

 

5 Items on Our Radar Today:

 

1. New home sales and home prices both increased slightly less than anticipated. However, the Conference Board's consumer confidence index topped estimates. (Reuters, via CNBC; CNBC)
2. A number of hedge fund managers remain upbeat about the state of the U.S. stock market, in spite of recent volatility, with Omega Advisors' Steven Einhorn saying, "we are not getting a signal from the corporate sector or our analysts that there has been any deterioration in outlook." However, plenty of skeptics remain, including DoubleLine Capital's Jeffrey Gundlach, who described the market as "wounded" and warned of a further correction. (Reuters)
3. TWTR is struggling around its IPO price -- and it's not the only one.
4. The catalyst that had this Dow component on the doorstep of positive year-to-date territory.
5. On the other hand, these two blue chips were among the first to turn lower.

 

 

 

 

Commodities:

 

Crude oil rebounded from six-year lows, as bargain hunters stepped in. By day's end, crude for October delivery was $1.07, or 2.8%, higher, at $39.31 per barrel.

 

Gold tumbled as China's rate-cut news lifted global markets and the dollar. At the close, December-dated futures were down $15.30, or 1.3%, to settle at $1,138.30 per ounce.