Dow Jones Industrial Average Falls Amid Oil Concerns

Analyst: Stay 'On the Sidelines' Ahead of Huge FDA Decision

by Josh Selway

Published on Aug 10, 2016 at 4:31 PM
Updated on Aug 10, 2016 at 4:32 PM

For the second day in a row, the Dow Jones Industrial Average (DJIA) retraced its early morning lead, this time landing on the wrong side of breakeven. Stocks were punished by falling oil prices, as a surprise increase in domestic crude inventories, as well as reports of record output from Saudi Arabia, sent crude futures spiraling. Meanwhile, with a report on retail sales due out on Friday, more disappointing earnings from retailers only stoked the bearish flames, overshadowing a solid Job Openings and Labor Turnover Survey (JOLTS).  


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

The Dow Jones Industrial Average (DJIA -18,495.66) fell 37.4 points, or 0.2%, for its second loss of the week. Fourteen of the 30 Dow components closed higher, with Wal-Mart Stores, Inc. (NYSE:WMT) and Walt Disney Co (NYSE:DIS) leading the way with 1.2% gains. The biggest loser was Exxon Mobil Corporation (NYSE:XOM), dropping 1.8%.

The S&P 500 Index (SPX - 2,175.49) closed down 6.3 points, or 0.3%. The Nasdaq Composite (COMP - 5,204.59) also moved lower, dropping 20.9 points, or 0.4%. 

The CBOE Volatility Index (VIX - 12.05) added 0.4 point, or 3.3%, for its third straight win. 

Indexes closing summary August 10
NYSE and NASDAQ stats August 10

5 Items on Our Radar Today:

  1. The Labor Department's JOLTS report revealed U.S. job openings increased by 110,000 in June. What's more, layoffs dropped to the lowest level since September 2014. (Reuters)
  2. In other economic news, the U.S. Treasury Department said the federal government had a $113 billion budget deficit in July. This marked a nearly $40 billion decline compared to a year earlier. (MarketWatch)
  3. Building the bullish case for Digital Realty Trust, Inc. (DLR)
  4. What caused this defense stock's worst day in almost a year. 
  5. Options traders stepped up ahead of Nordstrom, Inc. (NYSE:JWN) earnings


Quarterly Earnings August 10
Unusual Options Activity August 10
Data courtesy of
Trade-Alert

Commodities:

An increase in domestic crude inventories and reports of record output out of Saudi Arabia weighed on oil prices today. September-dated crude futures fell $1.06, or 2.5%, to settle at $41.71 per barrel. 

Gold prices got a lift once again as the U.S. dollar continued to ease. December-dated gold picked up $5.20, or 0.4%, to close at $1,351.90 an ounce. Meanwhile, solid vehicle sales in China sparked a 14-month high for palladium, with the September contract surging 4.6% to $726.40 an ounce.

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.