Dow Jones Industrial Average Drops 188 as Oil Tanks

Why Fitbit's Earnings Beat Wasn't Enough; Plus, 2 Oil Stocks to Watch

by Kirra Fedyszyn

Published on Feb 23, 2016 at 4:24 PM

The Dow Jones Industrial Average (DJIA) fell throughout the day, erasing most of Monday's gains, as comments from Saudi Arabia's oil minister helped send crude futures sharply lower. Neither strong earnings from Dow component Home Depot Inc (NYSE:HD) nor a rise in existing home sales could overshadow falling oil prices, which led stocks to substantial losses by the close of trading.


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

The Dow Jones Industrial Average (DJIA - 16,431.78) shed 188.9 points, or 1.1%, as 27 of its 30 components ended the day in the red. HD led the three gainers, climbing 1.4% on an earnings beat, while Chevron Corporation (NYSE:CVX) led the losers, dropping 4.4% as oil slumped.

The S&P 500 Index (SPX - 1,921.27) fell 24.2 points, or 1.3%, to end just 0.02 above the level corresponding with 10% correction territory. The Nasdaq Composite (COMP - 4,503.58) gave up 67 points, or 1.5%, just hanging onto the round 4,500 level. 

The CBOE Volatility Index (VIX - 20.98) added 1.6 points, or 8.3%, for the day.

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5 Items on Our Radar Today:

  1. Today's S&P/Case-Shiller home price index showed home prices rising 5.7% over the same time last year, shy of the estimated 5.9% increase. Meanwhile, existing home sales unexpectedly rose 0.4% in January to 5.47 million -- their fastest pace since last July. (CNBC, USA Today)

  2. President Obama announced plans for closing the Guantanamo Bay military prison, but has not yet made clear where current prisoners would be moved. The president needs congressional approval to enact his plan, which is facing opposition from many, including House Speaker Paul Ryan. (Bloomberg)

  3. An analyst nod boosted one outperforming gold stock.

  4. Options traders are betting on a massive move for Chesapeake Energy Corporation (NYSE:CHK) after earnings.

  5. The short-term trendline Twitter Inc (NYSE:TWTR) is challenging.
  6.  
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    Data courtesy of Trade-Alert

Commodities:

Saudi Arabia's oil minister batted down speculation over possible production cuts, which weighed heavily on crude oil today. Crude futures for April delivery finished the day down $1.52, or 4.6%, at $31.87 a barrel.

With stocks and oil trading lower, gold futures rebounded. April-dated gold added $12.50, or 1%, to close at $1,222.60 an ounce.


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