Dow Jones Industrial Average Slips as Nasdaq Outperforms

The Drug Stock Down 40%; Plus, Is Disney's Losing Streak About to End?

Jul 27, 2016 at 4:29 PM
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The Dow Jones Industrial Average (DJIA) began the day on a high note, as a positive earnings reaction for Dow stock Apple Inc. (NASDAQ:AAPL) offset heavy losses from The Coca-Cola Co's (NYSE:KO) dismal results. However, a disappointing report on durable goods orders, as well as slipping crude oil prices, sent the 30-stock index tumbling into the red. While the Dow reversed course after the Federal Open Market Committee (FOMC) released its latest policy statement, it couldn't maintain this momentum into the close. The Nasdaq Composite (COMP), meanwhile, easily outperformed its peers, thanks to strong days for both AAPL and biotechs.


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

The Dow Jones Industrial Average (DJIA - 18,472.17) ended the day essentially unchanged, down just 1.6 points, or 0.01%. KO led two-thirds of Dow components lower, dropping 3.3%, while AAPL paced the winners with a 6.5% gain.

The S&P 500 Index (SPX - 2,166.58) also landed a hair below breakeven, off 2.6 points, or 0.1%. The Nasdaq Composite (COMP - 5,139.81) easily outperformed it peers, adding 29.8 points, or 0.6%, for the day.

The CBOE Volatility Index (VIX - 12.83) fell 0.2 point, or 1.7%. 

Indexes closing summary July 27


NYSE and NASDAQ stats July 27

5 Items on Our Radar Today: 

  1. In a statement released following the conclusion of this month's FOMC meeting, the central bank revealed it would leave interest rates unchanged, as most had been predicted. However, the possibility of a September hike is now clearly on the table, after the Fed commented that "[n]ear-term risks to the economic outlook have diminished." Meanwhile, the FOMC also said that it will continue "to closely monitor inflation indicators and global economic and financial developments." (MarketWatch)
  2. Drugmaker Teva Pharmaceutical Industries Ltd (ADR) (NYSE:TEVA) received conditional antitrust approval from the Federal Trade Commission (FTC) to purchase Allergan plc's (NYSE:AGN) generic business, as long as TEVA divests 79 generic drugs to 11 rivals. The closing of the $40.5 billion deal, announced exactly one year ago, would make TEVA the world's top producer of generic drugs. (Reuters)
  3. How traders are playing 3 tech favorites ahead of tomorrow night's earnings. 
  4. Option bulls bet on record highs for this rallying Dow stock.
  5. Why have short sellers been flocking to First Solar, Inc. (NASDAQ:FSLR)?


Quarterly earnings July 27


Unusual options activity July 27

Data courtesy of
Trade-Alert

Commodities:

Crude oil for September delivery dropped $1.00, or 2.3%, to $41.92 per barrel -- its lowest settlement price since April 18. Weighing on oil prices was a report from the Energy Information Administration (EIA), which showed an unexpected weekly rise in domestic stockpiles for both crude and gasoline, along with higher crude production.

December-dated gold -- the most active contract -- climbed $6.20, or 0.5%, to settle at $1,334.50 an ounce ahead of this afternoon's Fed statement. The malleable metal continued its climb in after-hours trading, last seen up 1.5% as traders digest the Fed's interest-rate outlook.

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