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Dow Spirals Triple Digits on Disappointing Earnings

Treasury yields jumped to a seven-month high

Oct 25, 2017 at 4:29 PM
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The Dow Jones Industrial Average (DJIA) suffered its worst day since early September, falling triple digits as a result of lackluster earnings from Boeing (BA) and Coca-Cola (KO). The S&P 500 Index (SPX) also dipped following disappointing earnings from burrito chain Chipotle (CMG), while Advanced Micro Devices (AMD) earnings weighed on the Nasdaq Composite (IXIC).

Meanwhile, Treasury yields rose to a seven-month high, as traders digested the latest economic data and Fed rumors. New home sales for September unexpectedly jumped to their highest level in nearly 10 years, while orders for durable goods also rose more than expected. President Trump said Fed Chair Janet Yellen was "impressive," and hinted at keeping the central banker as leader of the Fed, though rumors continued to swirl that Republican senators favor economist John Taylor to become the next Fed chair. 

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

  • 2 electronics stocks that could shine in November.
  • Analyst: This delivery stock could hit record highs.
  • The Citron tweet that rocked RH stock.
  • Plus, stocks to buy next month; Expedia's earnings history; and 3 tech stocks that could make big moves this week.

The Dow Jones Industrial Average (DJIA - 23,329.46) ended with a loss of 112.3 points, or 0.5%. Nike (NKE) led the seven Dow gainers with a 2.8% gain, while BA paced the 23 losers with a 2.9% drop.

The S&P 500 Index (SPX - 2,557.15) ended down 12 points, or 0.5%. The Nasdaq Composite (IXIC - 6,563.89) lost 34.5 points, or 0.5%.
 
The CBOE Volatility Index (VIX - 11.23) gained 0.07 point, or 0.6%, for its first close above its 200-day moving average since early September.

Closing Indexes Summary Oct 25
NYSE and Nasdaq Stats Oct 25

5 Items on Our Radar Today

  1. Amazon announced its new in-home delivery service that allows Prime members to have packages delivered right inside their homes. The service, called Amazon Key, uses a lock and camera system to record the deliveries. (MarketWatch)
  2. Uber and a division of Barclays are planning to launch a credit card through Uber's mobile phone app. The credit card will reward customers with cash back on spending at restaurants, Uber rides, and other online transactions. (Reuters)
  3. The 25 best stocks to buy in November.
  4. A word of warning to Expedia short sellers ahead of earnings.
  5. 3 tech stocks that could make big moves on Friday.


Corporate Earnings Oct 25

Unusual Options Activity Oct 25
Data courtesy of Trade-Alert

Commodities

Crude prices ended lower today, after U.S. crude inventories unexpectedly rose last week, even as fuel stockpiles fell. December-dated oil futures ended down 29 cents, or 0.6%, at $52.18 per barrel.

Meanwhile, gold ended higher, despite having fallen to a more than two-week low intraday, amid Fed chair speculation rumors. December-dated gold ended up 70 cents, or 0.1%, at $1,279 an ounce, as concerns about a nuclear North Korea re-emerged.

 

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