Crude, Data Doom Dow Jones Industrial Average

How Wall Street's Betting Big on GoPro

Josh Selway
Oct 27, 2015 at 4:24 PM
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The Dow Jones Industrial Average (DJIA) was dragged lower by sliding crude prices and tepid economic data. Consumer confidence, durable goods, and service-sector growth all disappointed, sending the index below breakeven for the second straight day -- even after strong earnings from blue chips. Elsewhere, the Federal Open Market Committee (FOMC) will release its latest policy decision tomorrow, while the Street will also get to weigh in on Apple Inc.'s (NASDAQ:AAPL) quarterly results. 

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

The Dow Jones Industrial Average (DJIA - 17,581.43) made a brief attempt for gains around midday, but quickly reverted to the downside, dropping 41.6 points, or 0.2%. Eleven of the 30 Dow components closed in the black, with DuPont's (NYSE:DD) 2.8% post-earnings lift taking the top spot. The biggest loser was International Business Machines Corp. (NYSE:IBM), which dropped 4% after revealing it's being investigated by the Securities and Exchange Commission (SEC). 

The S&P 500 Index (SPX - 2,065.89) followed suit, ending with a 5.3-point, or 0.3%, loss. The Nasdaq Composite (COMP - 5,030.15) closed 4.6 points, or 0.1%, lower.

The CBOE Volatility Index (VIX - 15.43) managed to gain 0.1 point, or 0.9%, but met resistance near its 10-day moving average. 

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5 Items on Our Radar Today:

  1. Congress and the White House have agreed on terms for a new two-year budget deal. The deal, which will be voted on tomorrow and still needs Senate approval, suspends the debt ceiling until 2017, and should keep the U.S. Treasury from defaulting for the first time in history. (Reuters
  2. Consumer confidence declined during October, per the Conference Board's consumer confident survey. The index, which hit a nine-month high of 102.6 in September, came in at 97.6. (USA Today
  3. Bears couldn't be happier to see this food stock at new lows
  4. The Chinese name that got a big boost from Alibaba
  5. Schaeffer's contributor Adam Warner examines whether an oversold VIX actually matters


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Commodities:

Oil suffered its third straight drop, with the December contract losing 78 cents, or 1.8%, ending the day at $43.20 per barrel -- its lowest close in two months. The global glut continues to plague crude, while forthcoming U.S. data is expected to show yet another increase in supplies. In addition, oil reacted to news that the U.S. government will sell millions of barrels of crude from its Strategic Petroleum Reserve, starting in 2018.

It was a small loss for gold, as investors tread cautiously ahead of tomorrow's Fed news. While a rate increase is not expected this month, the meeting could give some insight into when the hike could happen, and rising rates would likely have a negative effect on gold pricing. Today's close at $1,165.80 an ounce represents a loss of 40 cents, or 0.03%, for December gold.


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