S&P's Longest Slide Since 1980; Dow Jones Industrial Average Drops Again

Stocks' Worst Slide in 35 Years; The Fear in 5 Charts

Nov 4, 2016 at 4:20 PM
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The Dow Jones Industrial Average (DJIA) explored both sides of breakeven, but eventually resolved to the downside -- its seventh straight loss, and the Dow's longest streak since August. While stocks spent most of the morning reacting favorably to a mixed jobs report, pre-election anxiety and an ongoing sell-off in crude oil kept a lid on U.S. markets throughout the afternoon. Likewise, the S&P 500 Index (SPX) and Nasdaq Composite (COMP) extended their losing streaks to nine sessions -- the worst stretch for either index since the 1980s -- while the CBOE Volatility Index (VIX) just hit a record ninth straight advance.

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

The Dow Jones Industrial Average (DJIA - 17,888.28) tumbled 42.3 points, or 0.2%, for its lowest weekly close since the Brexit vote in late June. Twelve of the Dow's 30 components settled higher, paced by Caterpillar, Inc's (NYSE:CAT) 1.3% gain. Of the 18 blue-chip losers, Procter & Gamble Co (NYSE:PG) performed the worst, diving 1.8%. Week-over-week, the Dow gave back 1.5%.

The S&P 500 Index (SPX - 2,085.18) edged down 3.5 points, or 0.2%, bringing its one-week deficit to 1.9%. Meanwhile, the Nasdaq Composite (COMP - 5,046.37) shed 12 points, or 0.2%, and suffered a weekly drop of 2.8%. Plus, the SPX and COMP are sitting on their worst stretches since December 1980 and May 1984, respectively.

The CBOE Volatility Index (VIX - 22.51) added 0.4 point, or 2%, and for the week, shot 39% higher.

Indexes closing summary November 4
NYSE and NASDAQ stats November 4

5 Items on Our Radar Today

  1. Japanese air bag manufacturer Takata could file bankruptcy for its U.S. business, TK Holdings, as a series of deaths linked to its defective air bag inflators have saddled the company with massive financial liabilities. However, Chief Financial Officer Yoichiro Nomura said, "Our preference would be to restructure debts through an out-of-court settlement with creditors." (Reuters)
  2. Whole Foods Market, Inc. (NASDAQ:WFM) is facing pressure from one of its biggest shareholders to make sweeping changes, according to inside sources. The shareholder is reportedly losing patience with the company's management, due to poor inventory and vendor control, as well as rising costs. (Bloomberg)
  3. Inside a big bullish options bet on Pandora Media Inc (NYSE:P).
  4. How to use options to simulate stock ownership on the cheap.
  5. Carl Icahn upped the ante on Herbalife Ltd. (NYSE:HLF).

Quarterly Earnings November 4

Unusual Options Activity November 4
Data courtesy of Trade-Alert

Commodities:

Crude oil dropped again, amid reports Saudi Arabia could increase output, against the wishes of the Organization of the Petroleum Exporting Countries (OPEC). In addition, Baker Hughes reported a weekly rise in active U.S. rigs. At day's end, December-dated futures were off 59 cents, or 1.3%, at $44.07 per barrel -- marking a sixth consecutive daily decline. For the week, liquid gold plunged 9.5% -- its sharpest weekly drop since mid-January.

Gold edged higher, buoyed by safe-haven demand heading into Tuesday's presidential election. Specifically, gold for December delivery added $1.20, or 0.1%, to land at $1,304.50 per ounce. For the week, the malleable metal tacked on 2.2%, and secured a fourth straight weekly win.

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