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Dow Jones Industrial Average Dips; Nasdaq Logs Longest Win Streak Since 2010

The $1.2M Nike Bet; Plus, 2 Soaring Semiconductor Stocks

Aug 19, 2016 at 4:24 PM
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The Dow Jones Industrial Average (DJIA) took a modest step back today, as stocks reacted negatively to mounting rate-hike expectations following Wednesday's Fed meeting minutes. Adding to the fears of liftoff was a speech last night from San Francisco Fed President John Williams, who said "it makes sense to get back to a pace of gradual rate increases, preferably sooner rather than later." All eyes will soon turn to Fed Chair Janet Yellen, slated to give a speech from Jackson Hole, Wyoming, on Friday. Meanwhile, though it was a lackluster day for stocks, the Nasdaq Composite (COMP) held on for an eighth consecutive weekly gain, its longest streak since April 2010.


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

The Dow Jones Industrial Average (DJIA - 18,552.57) dropped 45.1 points, or 0.2%, and gave back 0.1% on the week. NKE paced the 11 Dow winners, jumping roughly 3%. Of the 18 blue-chip losers, Wal-Mart Stores, Inc. (NASDAQ:WMT) was worst off, down 2%. Johnson & Johnson (NYSE:JNJ), meanwhile, was flat.

The S&P 500 Index (SPX - 2,183.87) dipped 3.2 points, or 0.1%, and finished the week fractionally lower. The Nasdaq Composite (COMP - 5,238.38) lost 1.8 points, or 0.03%, but held on for a 0.1% weekly advance.

The CBOE Volatility Index (VIX - 11.34) slipped 0.1 point, or 0.8%, for a third straight daily defeat. Relative to last Friday's close, the market's "fear gauge" finished on a 1.8% loss.

Closing Indexes Summary August 19

NYSE and Nasdaq Volume August 19

5 Items on Our Radar Today:

  1. Dozens of major tech companies -- such as Alphabet Inc (NASDAQ:GOOGL) and Apple Inc. (NASDAQ:AAPL) -- are teaming up to combat "robocalls." Calling themselves the "Robocall Strike Force," the group hopes to develop caller ID verification standards that will block the automated telephone calls, which generally come from telemarketers and scammers. (Reuters)
  2. Financial giant Morgan Stanley (NYSE:MS) has been accused of mismanaging its 401(k) plan, resulting in "hundreds of millions of dollars" in losses. According to the lawsuit, MS promoted business interests over those of plan participants by offering its own funds rather than alternatives that performed better. (The New York Times)
  3. Goldman Sachs and call buyers alike love this retail stock.
  4. Are this drugmaker's expectations for a second-half recovery "overly optimistic"?
  5. It looks like Viacom, Inc.'s (NASDAQ:VIAB) boardroom drama may finally be over.


Corporate Earnings August 19
Unusual Options Activity August 19
Data courtesy of
Trade-Alert

Commodities:

Oil prices shrugged off an eighth consecutive weekly build in operational U.S. rigs, amid persistent hopes that the Organization of the Petroleum Exporting Countries (OPEC) will take action to curb production at next month's meeting. At the close, September-dated crude futures were up 30 cents, or 0.6%, at $48.52 per barrel -- marking a seventh consecutive daily win. On a weekly basis, liquid gold soared 9.1%, its best week in over five months.

Gold retreated as traders exercised caution, following a week of mixed signals regarding the timing of the next Fed rate hike -- and ahead of next week's speech by Fed Chair Janet Yellen. At day's end, gold for December delivery was down $11, or 0.8%, at $1,346.20 per ounce. On the week, however, the malleable metal picked up 0.2%.

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