Rate-Hike Speculation Weighs on Dow Jones Industrial Average

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

by Celeste Taylor

Published on May 19, 2016 at 4:27 PM

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
Trade-Alert

Commodities:

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

A Schaeffer's exclusive

6 Sectors for Summer

Access your FREE insider report before it's too late!


  
 

Partnercenter


NEW! Explore Schaeffer’s Partners' deals and get connected to top online brokerages with deals tailored exclusively for our readers.  Get answers to your questions regarding transfer fees, commission rates, programs and available discounts related to online trading services.

MORE | MARKETstories


The Next Big Player in U.S. MJ Boom
Most pure-play marijuana stocks in the U.S. trade on the Over-the-Counter stock exchange.
Wall Street Roars Higher Amid Civil Unrest
Investors weighed a mixed bag of jobs data
AstraZeneca Stock Flat Despite COVID-19 Vaccine News
AstraZeneca saw a rise in capacity for its COVID-19 vaccine candidate
The Next Big Player in U.S. MJ Boom
Most pure-play marijuana stocks in the U.S. trade on the Over-the-Counter stock exchange.