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Dow Jones Industrial Average Makes It 7 Straight Losses

How the Dow and Nasdaq Just Made History

Aug 2, 2016 at 4:23 PM
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The Dow Jones Industrial Average (DJIA) extended its losing streak to seven -- the longest since August 2015 -- as stocks reacted negatively to a round of mixed economic data and blue-chip earnings. Also pressuring stocks -- and lifting gold to a two-year high -- was bearish activity overseasand an ongoing sell-off in crude oil, with futures closing below a key technical level for the first time in four months. And while the Dow's struggles have persisted for some time, the Nasdaq Composite (COMP) lost its mojo, snapping a five-session win streak.


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

The Dow Jones Industrial Average (DJIA - 18,313.77) was down almost 157 points at its intraday low, and finished on a loss of 90.7 points, or 0.5%. Just seven of the Dow's 30 components ended higher, led by a 1.3% pop at Exxon Mobil Corporation (NYSE:XOM). Twenty-two blue chips settled in the red -- with Pfizer Inc.'s (NYSE:PFE) 2.5% loss on earnings the worst of the bunch -- while Microsoft Corporation (NASDAQ:MSFT) was unchanged.

The S&P 500 Index (SPX - 2,157.03) shed 13.8 points, or 0.6%, while the Nasdaq Composite (COMP - 5,137.73) dove 46.5 points, or 0.9%.

The CBOE Volatility Index (VIX - 13.37) jumped 0.9 point, or 7.5%.

Indexes closing summary August 2

NYSE and NASDAQ stats August 2

5 Items on Our Radar Today:

  1. Taking a page out of UnitedHealth Group Inc's (NYSE:UNH) playbook, health insurer Aetna Inc (NYSE:AET) said it will not expand its Obamacare coverage to more states next year. In fact, CEO Mark Bertolini said the company will undertake "a complete evaluation of future participation" in public exchanges, following steep losses in its Affordable Care Act (ACA) business. (CNNMoney)
  2. Speaking in China about the challenges facing the U.S. economy -- including sluggish gross domestic product (GDP) growth -- Dallas Fed President Robert Kaplan said that the "removal of accommodation should be done in a gradual and patient manner." (MarketWatch)
  3. Lackluster July auto sales took a toll on these 2 Detroit darlings.
  4. Another day, another drubbing for this heavily shorted biotech.
  5. Why the SPX's red-hot July could prove a bleak short-term omen.


Quarterly Earnings August 2

Unusual Options Activity August 2
Data courtesy of
Trade-Alert

Commodities:

Crude oil pulled back sharply after initial gains -- following the lead of the broader equities market -- amid ongoing concerns of a supply glut. At the close, September-dated crude was down 55 cents, or 1.4%, at $39.51 per barrel, notching its first close south of $40 since early April, and falling deeper into bear-market territory.

Gold rallied as the dollar faded and an unimpressive round of economic data dampened the prospects of a near-term Fed rate hike. Specifically, gold for December delivery tacked on $13, or 1%, to settle at $1,372.60 per ounce -- its highest close since March 2014 -- as investors sought "safe havens."

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