Dollar, Earnings Drive Dow Jones Industrial Average Down 200 Points

2 Sinking Airline Stocks

by Celeste Taylor

Published on Oct 11, 2016 at 4:34 PM
Updated on Oct 11, 2016 at 4:36 PM

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.

Stay on top of overnight news & big morning movers. Sign up now for Schaeffer's Opening View.

A Schaeffer's exclusive!

The Expert's Guide

Access your FREE trading earning announcements 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


Research Exposes Shortcut to Stock Market Wins
A simple way to stop picking losers, and start cashing in like Wall Street's elite.
Cannabis Stock Rally Cut Short after Downgrade
Aurora Cannabis did receive a price-target hike from Jefferies, though
Vaccines, China Trigger Roller Coaster Week for Stocks
Moderna's vaccine captured the attention of Wall Street
Research Exposes Shortcut to Stock Market Wins
A simple way to stop picking losers, and start cashing in like Wall Street's elite.