Dow Jones Industrial Average Sinks 252 On Central Bank Noise

2 Oil Stocks Due for a Short-Term Bounce

Dec 3, 2015 at 4:30 PM
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Central bank noise at home and abroad kept U.S. indexes in the red for a second straight day. The Dow Jones Industrial Average (DJIA) drifted lower throughout the day, as traders digested smaller-than-expected easing measures out of the European Central Bank (ECB), Fed Chair Janet Yellen's relatively hawkish testimony before the Joint Economic Committee, and a string of economic reports. By the close, the Dow was sitting on a hefty triple-digit deficit, the S&P 500 Index (SPX) was in the red year-to-date, and the Nasdaq Composite (COMP) was at a two-week low.

Continue reading for more on today's market, including

The Dow Jones Industrial Average (DJIA - 17,477.67) dropped a hefty 252 points, or 1.4%, as Travelers Companies Inc (NYSE:TRV) paced the 28 losers with a 3% loss. Of the 30 blue-chip components, only Wal-Mart Stores, Inc. (NYSE:WMT) and General Electric Company (NYSE:GE) managed to finish in the black, adding 1.2% and 0.2%, respectively.

The S&P 500 Index (SPX - 2,049.62) lost 29.9 points, or 1.4%, landing in negative year-to-date territory, and marking the steepest decline since late September. The Nasdaq Composite (COMP - 5,037.53) dropped 85.7 points, or 1.7%.

The CBOE Volatility Index (VIX - 18.11) finished the day up 2.2 points, or 13.8%, for its highest close in more than two weeks.

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5 Items on Our Radar Today:

  1. Weekly jobless claims rose more than expected, but remain below the key 300,000 level, indicating a healthy labor market. Meanwhile factory orders for U.S. goods rose 1.5% for October, after declining the previous month, but still fell just shy of predictions. (Reuters, via CNBC; MarketWatch)
  2. The Institute for Supply Management (ISM) non-manufacturing index fell to 55.9 in November, from 59.1 the month before. Economists were expecting the index to dip to just 58.0 last month. (Reuters, via CNBC)
  3. Checking in with Square Inc (NYSE:SQ) after two weeks on the market.
  4. How are these 3 trucking stocks faring with a deep decline in North American orders?
  5. As quantitative easing from the ECB could help the euro, these 3 stocks could face currency headwinds.


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Commodities:

U.S. crude oil managed to finish in the black today, thanks to a weakening dollar and ahead of a meeting of the Organization of the Petroleum Exporting Countries (OPEC). In addition, traders weighed a report suggesting Saudi Arabia will propose an OPEC production cut, though the country called the rumors "baseless." Crude oil for January finished $1.14, or 2.9% higher, at $41.08 a barrel.

Gold also rebounded to a positive close, bouncing back from a six-year low, as ECB news and a weaker dollar overshadowed expectations for a December rate hike from the Fed. February gold futures ended the day up $7.40, or 0.7%, at $1,061.20 an ounce.

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