Fischer, Factory Data Weigh On Dow Jones Industrial Average

The Cryptic Tweet That Sent One Stock Soaring

Oct 17, 2016 at 4:23 PM
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The Dow Jones Industrial Average (DJIA) ended in the red, as stocks reacted to lower crude oil prices, lackluster factory data, and hawkish remarks from Fed Vice Chairman Stanley Fischer. The central banker cautioned against the economic dangers of low interest rates, and said inflation and unemployment "are very close" to the Fed's targets. Meanwhile, earnings continued to roll in, headlined by Bank of America Corp (NYSE:BAC), with several more big-cap stocks slated to report this week.

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

The Dow Jones Industrial Average (DJIA - 18,086.40) fell 0.3%, or 52 points. Johnson & Johnson (NYSE:JNJ) led the seven Dow leaders, coming out 0.8% ahead, while McDonald's Corporation (NYSE:MCD) brought up the rear of the 22 Dow losers, finishing the day 1.5% lower. Exxon Mobil Corporation (NYSE:XOM) finished flat.

The S&P 500 Index (SPX - 2,126.50) also ended lower, losing 6.5 points, or 0.3%. The Nasdaq Composite (COMP - 5,199.82) gave up 0.3%, or 14.3 points.

The CBOE Volatility Index (VIX - 16.21) edged 0.6% higher for a fractional gain.

Closing Indexes Summary October 17
NYSe and Nasdaq Stats October 17
 

5 Items on Our Radar Today

  1. PepsiCo, Inc. (NYSE:PEP) announced it will be taking steps to reduce the sodium, sugar, fat, and calories found in many of its popular drinks and snacks. PEP said it wants to deliver a strong performance based on responding to the increased demand for healthier snack options. (USA Today)
  2. Caterpillar Inc.'s (NYSE:CAT) CEO Doug Oberhleman will step down at the end of 2016, to be replaced by Jim Umpleby, current Caterpillar Group President for Energy & Transportation. (Reuters)
  3. Myriad Genetics, Inc. (NASDAQ:MYGN) rose ahead of a big data reveal
  4. PTC Therapeutics, Inc. (NASDAQ:PTCT) plummeted after a Food and Drug Administration (FDA) denial.
  5. Hasbro, Inc. (NASDAQ:HAS) bulls were ready to play after an earnings win.

Corporate Earnings October 17
Unusual Options Activity October 17
Data courtesy of Trade-Alert

Commodities:

November-dated crude futures fell 0.8% to $49.94 per barrel, breaching the $50 level, as oversupply concerns, pre-expiration volume, and comments by Iran's vice president about regaining market share pressured black gold lower. Continued hopes for an Organization of the Petroleum Exporting Countries (OPEC) production agreement limited losses for the day.

December-dated gold futures inched up 0.1%, or $1.10, to end the day at $1,256.60 per ounce. The World Gold Council said gold demand from China will remain strong next year, and a falling dollar also lifted the malleable metal.

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