Dollar, Earnings Drive Dow Jones Industrial Average Down 200 Points

2 Sinking Airline Stocks

Oct 11, 2016 at 4:34 PM
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The Dow Jones Industrial Average (DJIA) spent the day in the red, ending down triple digits after Alcoa Inc (NYSE:AA) kicked off third-quarter earnings season on a dismal note. Stocks also reacted to tumbling crude oil prices, as well as a rising U.S. dollar -- which gained ground against a basket of global currencies ahead of tomorrow's release of the September Fed meeting minutes. Elsewhere, healthcare stocks crumbled in the wake of Illumina, Inc.'s (NASDAQ:ILMN) steep guidance-induced loss, putting pressure on both the Nasdaq Composite (COMP) and the S&P 500 Index (SPX).

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

The Dow Jones Industrial Average (DJIA 18,128.66) surrendered 200.4 points, or 1.1%. Apple Inc. (NASDAQ:AAPL) led the three Dow winners, with a gain of 0.2%, while DuPont (NYSE:DD) finished at breakeven. Merck & Co., Inc. (NYSE:MRK) brought up the rear among the 21 Dow losers, dropping 3.1%.

The S&P 500 Index (SPX – 2,136.73) lost 26.9 points, or 1.2%. The Nasdaq Composite (COMP – 5,246.79) shed 81.9 points, or 1.5%.

The CBOE Volatility Index (VIX – 15.36) soared 2 points, or 14.8%, to its highest close since Sept. 20.

Closing Indexes Summary October 11
NYSE and Nasdaq Stats October 11

5 Items on Our Radar Today

  1. As part of a program put in place last year, Yum! Brands, Inc. (NYSE:YUM) said it plans to return up to $13.5 billion to shareholders over the next three years. The owner of KFC, Taco Bell, and KFC said it will increase franchise ownership by 16 percentage points to 93% once its China spinoff is complete at the end of this month. (Reuters)
  2. Cable company Comcast Corporation (NASDAQ:CMCSA) has been hit with a $2.3 million civil penalty by the Federal Communications Commission (FCC) for charging customers with services and products they didn't order. This is the largest penalty the FCC has ever issued against a cable provider. (CNN) 
  3. Fastenal Company (NASDAQ:FAST) slipped below this key support level.
  4. Damning traffic speculation sent Chipotle Mexican Grill, Inc. (NYSE:CMG) tumbling.
  5. Why Rent-A-Center Inc (NASDAQ:RCII) slipped to nearly 15-year lows.

Corporate Earnings October 11
Unusual Options Volume October 11
Data courtesy of Trade-Alert

Commodities:

November-dated crude dropped 56 cents, or 1.1%, to finish the day at $50.79 per barrel. While talks of an oil production freeze have boosted oil prices of late, new concerns about the effectiveness of such cuts -- and reports of record-high crude production from the Organization of the Petroleum Exporting Countries (OPEC) -- weighed on oil prices.

A stronger U.S. dollar weighed on gold prices. By the close, December-dated gold had lost $4.50, or 0.4%, to settle at $1,255.90 per ounce.

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