Rate-Hike Speculation Weighs on Dow Jones Industrial Average

2 Auto Stocks That Crashed and Burned; Plus, Ugly Day for Airlines

May 19, 2016 at 4:27 PM
facebook X logo linkedin

The Dow Jones Industrial Average (DJIA) spent the entire session in the red, continuing its slide from yesterday, and at one point even giving up its year-to-date gains. Fed officials continued to fan the rate-hike flames, with New York Fed President William Dudley calling expectations for a summer increase "reasonable." The central bank speculation and a dismal day for oil overshadowed solid earnings from blue-chip stocks Cisco Systems, Inc. (NASDAQ:CSCO) and Wal-Mart Stores, Inc. (NYSE:WMT), the latter of which broke a recent string of unimpressive retailer reports.

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

The Dow Jones Industrial Average (DJIA – 17,435.40) was down nearly 200 points at its session low, but managed to contain its losses to 91.2 points, or 0.5%. Of the seven DJIA winners, WMT enjoyed the biggest gains, up 9.6% after strong earnings, while Goldman Sachs Group Inc (NYSE:GS) was the biggest loser, down 3.3%.

The S&P 500 Index (SPX – 2,040.04) also tumbled, finishing the day down 7.6 points, or 0.4%, while the Nasdaq Composite (COMP – 4,712.53) finished down 26.6 points, or 0.6%.

The CBOE Volatility Index (VIX - 16.33) gained 0.4 point, or 2.4%, to its highest finish since mid-March.

Indexes Closing Summary May 19

NYSE and Nasdaq Stats May 19

5 Items on Our Radar Today:

  1. German pharma Bayer AG (BAYN) confirmed it made an offer to buy Monsanto Company (NYSE:MON) for an undisclosed amount. (Reuters)

  2. Professional gambler Billy Walters and former Dean Foods Co (NYSE:DF) CEO Thomas Davis were accused of insider trading, with professional golfer Phil Mickelson allegedly profiting from the conspiracy. (MarketWatch)

  3. GrubHub Inc (NYSE:GRUB) is under attack by options bears

  4. Is now the time to invest in silver?

  5. Are options traders hoping for a Deere & Company (NYSE:DE) earnings miss?


Quarterly Earnings May 19

Unusual Options Activity May 19
Data courtesy of


Oil prices fell as the dollar strengthened in anticipation of a summer interest rate hike, with June-dated crude futures ending at $48.16 per barrel, down 3 cents, or 0.06%. The fall was padded by concerns over supply shortages, with Nigeria's largest crude oil terminal closed due to security concerns.

June-dated gold slid 1.5%, or $19.60, to end the day at $1,254.80 an ounce. The precious metal hit a three-week low, pressured by a stronger dollar.

Stay on top of overnight news & big morning movers. Sign up now for Schaeffer's Opening View

Unlock Weekend Profits with Chris Prybal's Favorite Strategy Up +487.5% in 2024

With the markets going left, right, and sideways, you need to have a plan now more than ever. 

Expert Trader Chris Prybal is no stranger to volatility, and has mastered finding big stock rallies while other traders aren't looking over the weekend. Rallies that produced gains like +207% on RTX calls, +236% on MARA calls, and +238% on NET calls.

A few simple moves on Sunday at 7pm could be the “Secret Sauce” your portfolio needs to not just stay afloat, but make unprecedented gains in this turbulent market.

Don’t sit on the sidelines, beat the market with Chris Prybal's strategy. Join him now!