Dow Jones Industrial Average Drops Triple Digits as Oil, Apple Sell Off

The Hot Stock Benefiting From Yahoo's Misfortune

by Josh Selway

Published on Sep 23, 2016 at 4:25 PM

The Dow Jones Industrial Average (DJIA) spent the entire session below breakeven, as a steep plunge in oil prices, disappointing economic data, and a late-day drop for Apple Inc. (NASDAQ:AAPL) crushed stocks' Fed-induced win streak. Specifically, crude oil futures suffered their worst loss in roughly two months, on reports Saudi Arabia does not foresee next week's meeting of top oil producers resulting in a production freeze. Meanwhile, a disappointing flash reading from the Markit purchasing managers index (PMI) and strong words from Boston Fed President Eric Rosengren raised more red flags for traders, as several of his banking peers -- including Fed Chair Janet Yellen -- prepare to speak next week

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

The Dow Jones Industrial Average (DJIA - 18,261.45) gave back 131 points, or 0.7%, for its first loss in four sessions. Twenty-seven of the Dow's 30 components closed in the red, with AAPL's 1.7% decline pacing the losers. Verizon Communications Inc. (NYSE:VZ), meanwhile, was the top gainer, adding 0.4%. The Dow added 0.8% for the week. 

The S&P 500 Index (SPX - 2,164.69) also closed lower, giving back 12.5 points, or 0.6%. The Nasdaq Composite (COMP - 5,305.75) finished down 33.8 points, or 0.6%. For the week, the SPX and COMP both added 1.2%. 

The CBOE Volatility Index (VIX - 12.29) managed a 0.3-point, or 2.3%, win, though it closed the week down 20%.

Indexes closing summary September 23
NYSE and NASDAQ stats September 23

5 Items on Our Radar Today

  1. The Federal Reserve today released a proposal that would require big banks that invest in the energy sector to hold more capital. The proposal is meant to protect the financial system from a major accident in the energy space. (Reuters)
  2. Market research firm GfK supposedly raised red flags about AAPL's overseas iPhone sales, though the report was exclusive to subscribers. Meanwhile, Digitimes suggested chip orders for the new iPhones could drop about 20% in the first quarter of 2017, which weighed on AAPL suppliers. (CNBC)
  3. How salesforce.com, inc. (NYSE:CRM) traders reacted to today's huge M&A buzz.
  4. Morgan Stanley's high hopes for these two video game rivals. 
  5. Is this Dow stock destined for nine-year highs

Quarterly Earnings September 23
Unusual Options Activity September 23
Data courtesy of Trade-Alert

Commodities:

Crude oil futures sold off today, as hope for a production freeze among top oil producers began to fade. By the close, November-dated crude was down $1.84, or 4%, at $44.48 per barrel. Still, oil prices finished the week up 3.4%. 

Gold prices moved lower as well. December-dated gold slipped $3, or 0.2%, to land at $1,341.70 per ounce. Gold finished the week higher, though, adding 2.4%. 

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