The Dow fell over 500 points at its lows, but pared its losses into the close
The Dow plunged out of the gate this morning, and was down 548 points at its session low, as industrial heavyweights 3M (MMM) and Caterpillar (CAT) sold off after their latest earnings reports. The early downside bias echoed a bearish mood overseas, where stocks in Asia and Europe succumbed to heavy selling. While stocks ended firmly lower, positive post-earnings reactions from the likes of McDonald's (MCD) and Verizon (VZ) helped the major equity indexes climb off their lows by the end of the session.
Continue reading for more on today's market, including:
The Dow Jones Industrial Average (DJI - 25,191.43) fell nearly 126 points, or 0.5%, after earlier touching a session low of 24,768.79. Ten Dow stocks ended the day higher, with MCD leading the way, closing 6.3% higher. On the flip side, Caterpillar stock paced the 20 losers with a 7.6% drop.
The S&P 500 Index (SPX - 2,740.69) shed 15.2 points, or 0.6%, to tally its fifth straight daily decline. The Nasdaq Composite (IXIC - 7,437.54) also suffered, losing 31.1 points, or 0.4%.
The Cboe Volatility Index (VIX - 20.71), however, added 1.1 point, or 5.5%, for the day.
5 Items on our Radar Today
- German car maker BMW has expanded its latest recall to 1.6 million vehicles worldwide, after multiple fires have been reported from fluid leaks. While no injuries have been flagged, 480,000 cars had already been recalled in the Asian and European markets following multiple incidents out of South Korea. (CNBC)
- Shares of Tesla (TSLA) surged in today's trading after notorious short seller Citron Research went long on the stock. The bull note also arrives just ahead of Tesla's third-quarter earnings, slated for after the market closed tomorrow. Separately, a tweet from CEO Elon Musk suggested the automaker is looking to further streamline production, with some interior options on the Model S and Model X no longer available after Nov. 1. (Twitter)
- Snap stock was hit with price-target cuts before earnings.
- Jefferies lowered its expectations for Facebook stock.
- eBay reeled after a downgrade as options traders remained split.
Data courtesy of Trade-Alert
Oil Falls with Stocks; Gold Surges
Oil fell to its lowest close in nearly two months, tracking weakness in stocks. The December-dated crude contract fell $2.93, or 4.2%, to settle at $66.43 per barrel for the day -- its lowest finish since mid-August.
Gold futures, on the other hand, caught a safe-haven boost. December-dated gold added $12.20, or 1%, to close at $1,236.80 per ounce. That's the precious metal's highest close in over three months.