Dow Jones Industrial Average Ends Day, Month Lower Amid Election Uncertainty

The Dow Jones Industrial Average (DJIA) spent the day churning within a 65-point range, spanning both sides of breakeven, as stocks reacted to a flurry of M&A news, an upbeat consumer spending report, and growing election uncertainty stemming from the new email battle between the FBI and presidential candidate Hillary Clinton. Traders also readied for the Federal Open Market Committee's (FOMC) two-day policy meeting, and eyed falling oil prices amid doubts that the Organization of the Petroleum Exporting Countries (OPEC) will arrive at an agreement to cut output. Against this backdrop, the Dow ended the day modestly lower, and racked up its third straight monthly loss.

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

• 3 sports stocks getting a red card from analysts.
• Why Moody's is optimistic about holiday e-tail trends.
• How option traders are playing Pfizer Inc. (NYSE:PFE) ahead of earnings.
• Plus... 2 stocks getting hit by option players, a $34 billion buyout, and even more M&A rumors.
  

The Dow Jones Industrial Average (DJIA - 18,142.42) ended 18.8 points or 0.1% lower for the day. Chevron Corporation (NYSE:CVX) led the 14 Dow winners with a gain of 0.9%, while Nike Inc (NYSE:NKE) dropped 3.5% to bring up the rear of the 16 Dow losers. For the month, the Dow lost 0.9%.

The S&P 500 Index (SPX - 2,126.15) finished fractionally lower, as the Nasdaq Composite (COMP - 5,189.14) dropped 1 point. Month-over-month, the SPX fell 1.9%, while the COMP gave up 2.3%.

The CBOE Volatility Index (VIX - 17.06) tacked on 0.9 point, or 5.4%, to end the month 28.4% higher.

5 Items on Our Radar Today

1. Bank of England governor Mark Carney will be stepping down in the summer of 2019, extending his anticipated five-year term an additional year. Carney cited the importance of continuity among leadership during "Brexit" proceedings, with Prime Minister Theresa May publicly supporting Carney's decision. (BBC)
2. U.S. consumer spending rose more than expected in September, increasing 0.5% thanks to better-than-anticipated vehicle sales, along with steady inflation rates. While this month's Federal Reserve meeting is not expected to produce an interest rate hike, positive economic data has lifted expectations for a rate hike before the end of the year. (Reuters)
3. 2 stocks hit hard by option players.
4. The $34 billion telecommunications buyout.
5. Why buyout rumors had these option buyers high on the HOG.  

Data courtesy of Trade-Alert

Commodities:

December-dated crude futures dropped $1.84, or 3.8%, to finish the day at $46.86 per barrel -- a one-month low -- as doubts about an OPEC output cut lingered. For the month, oil dropped 2.9%, comparing most-active contracts.

Gold for December delivery gave up $3.70, or 0.3%, to end at $1,273.10 per ounce. The precious metal fell on rebounding dollar strength. Month-over-month, the precious metal shed 3.3%.