Dow Jones Industrial Average Closes Awful Quarter With Huge Win

The Stocks to Avoid In October

by Josh Selway

Published on Sep 30, 2015 at 4:33 PM

The worst quarter in four years has ended -- and on a strong note, at that. The Dow Jones Industrial Average (DJIA) rallied 235 points, but still logged a third-quarter decline of 7.6%. The S&P 500 Index (SPX) and Nasdaq Composite (COMP) also surged, with the latter boosted by a successful rebound in biotechs. The risk-on attitude can be attributed in part to a strong stimulus-related showing from overseas markets, plus a promising private-sector employment report. Looking ahead, while the first session of the fourth quarter will see its fair share of economic data -- and Twitter Inc (NYSE:TWTR) could draw some attention --  it's Friday's lineup that's likely to draw a crowd.

 

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

 

The Dow Jones Industrial Average (DJIA - 16,284.70) was strong throughout, closing near its session highs, with a 235.6-point, or 1.5%, win. Twenty-eight of the 30 Dow components closed higher, led by a 3.5% gain from Chevron Corporation (NYSE:CVX). The losers were Procter & Gamble Co (NYSE:PG) and Verizon Communications Inc. (NYSE:VZ), with respective losses of 0.5% and 0.1%. For the month, the Dow lost 1.5%, and had a quarterly decline of 7.6%. 

The S&P 500 Index (SPX - 1,920.03) shot higher as well -- finishing with a gain of 35.9 points, or 1.9% -- but falling woefully short of a critical close above its 20-month moving average. The Nasdaq Composite (COMP - 4,620.16) closed the day 102.8 points, or 2.3%, higher. For the month, the SPX and COMP posted respective losses of 2.6% and 3.3%, bringing their quarterly deficits to 6.9% and 7.4%. 

The CBOE Volatility Index (VIX - 24.50) dropped 2.3 points, or 8.7%, amid today's rally, but still closed above the closely watched 23.90 level. The VIX lost 13.8% on the month, but gained 34.4% on the quarter.


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5 Items on Our Radar Today:

  1. The Senate approved a funding bill that will keep the government operating until December. The bill does not contain a provision to de-fund Planned Parenthood, which has been the primary issue for Republicans in recent weeks. The bill has now been sent the the House, which is expected to approve the measures ahead of tonight's midnight deadline. (USA Today)
  2. Tesla Motors Inc (NASDAQ:TSLA) earlier today unveiled its Model X SUV. The long-awaited electric vehicle -- which had been delayed several years -- will be priced at roughly $132,000. (The New York Times
  3. The cybersecurity stock that lost one-third of its value
  4. One of the world's most iconic CEOs has stepped down -- but who's the replacement
  5. Looking for something to blame for the recent market turmoil? Schaeffer's contributor Adam Warner has you covered. 



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Commodities:

 

Russian airstrikes in Syria and Hurricane Joaquin were not enough to overshadow rising domestic inventories, sending crude oil lower. November-dated crude ended 14 cents, or 0.3%, lower at $45.09 per barrel. For the month, black gold lost 8.4%, and 24% on the quarter.

Strength in the U.S. dollar weighed on gold today. The precious metal finished the day down $11.60, or 1%, at $1,115.20 per ounce. The precious metal closed the month 1.6% lower, and the quarter down 4.8% -- its worst quarterly loss in a year.


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