The DJIA gave up ground on less-than-impressive PMI data, at home and abroad
The Dow Jones Industrial Average (DJIA) spent time on both sides of breakeven today, ultimately resolving to the downside as traders digested less-than-encouraging manufacturing activity at home and abroad, as well as another slump in energy prices. Meanwhile, Atlanta Fed President Dennis Lockhart spoke for the third straight day, reiterating expectations for a 2015 rate hike and reassuring investors that China's slowdown likely will not spark a global recession -- with Fed Chair Janet Yellen on deck for tomorrow. Overseas, the Volkswagen scandal came to a head, and European Central Bank (ECB) President Mario Draghi expressed concerns over the eurozone's tepid inflation rate.
Continue reading for more on today's market, including:
The
Dow Jones Industrial Average (DJIA - 16,279.89) ended 50.6 points, or 0.3%, lower -- its fourth loss in the last five sessions. Of the 30 Dow components, 13 gained -- led by Pfizer Inc.'s (NYSE:PFE) 1.1% advance -- while the other 17 dropped -- paced by Caterpillar Inc.'s (NYSE:CAT) 2.1% decline
The
S&P 500 Index (SPX - 1,938.76) gave back 4 points, or 0.2%, while the
Nasdaq Composite (COMP - 4,752.74) slipped 4 points, or 0.1%.
The
CBOE Volatility Index (VIX - 22.13) lost 0.3 point, or 1.4%, pressured once more by its descending 10-day trendline.
5 Items on Our Radar Today:
- Markit's flash purchasing managers manufacturing index (PMI) was flat month-over-month, as expected, remaining near levels not seen previously since October 2013. Meanwhile, job creation slowed to 51.4, its weakest level in over one year. (Reuters)
- Two days after Volkswagen's emission scandal came to light, the automaker's CEO, Martin Winterkorn, stepped down. In a written statement, Winterkorn said he is "shocked by the events" that took place, and denied having any knowledge of the company's deceptive practices. (USA Today)
- How Cowen stopped GPRO in its tracks.
- Short-term traders blazed a bullish path toward this surging cybersecurity stock.
- A closer look at some massive bets on precious metal ETFs.
Commodities:
Crude oil got drilled, as news of a second straight -- and steeper-than-expected -- drop in U.S. stockpiles was overshadowed by reports of a buildup in gasoline inventories. At the close, November-dated crude -- now the front-month contract -- had plunged $1.88, or 4.1%, at $44.48 per barrel.
Gold got a boost from a cooling dollar, as well as weak factory data out of China, which enhanced the metal's safe-haven appeal. By day's end, gold for December delivery was up $6.70, or 0.6%, to settle at $1,131.50 per ounce.