Dow Drops Three Straight as Market Sentiment Sours

Investors are unpacking earnings and consumer confidence data as well

Deputy Editor
Oct 27, 2020 at 4:28 PM
facebook twitter linkedin

The Dow extended its midday losses to fall 222 points, as a new record in coronavirus infections caused "reopening" stocks such as airlines to fall. The S&P 500 closed lower as well, while the Nasdaq managed to turn out a win as tech-heavy "at-home" stocks rose. Meanwhile, investors are unpacking a slew of corporate earnings, as well as data that U.S. consumer confidence dipped to 100.3 from 101.3 in October. 

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

  • eBay options bears bears gearing up for earnings. 
  • Harley-Davidson stock rumbled to best day since March
  • Plus, insurance stock climbs on spinoff buzz; pharma giant rises on increased demand; and CAT slips from pre-earnings highs.

The Dow Jones Industrial Average (DJI - 27,463.19) fell 222.2 points, or 0.8%. (CRM) topped the Dow with a 3.4% win, while Boeing (BA) landed at the bottom with a 3.4% loss. 

Meanwhile, the S&P 500 Index (SPX - 3,390.68) dropped 10.3 points, or 0.3%, while the Nasdaq Composite (IXIC - 11,431.35) gained 72.4 points, or 0.6% for the day.

Lastly, the Cboe Volatility Index (VIX - 33.35) added 0.9 point, or 2.7%. 

Closing Summary 1027

NYSE Nasdaq

  1. The U.S. Federal Communications Commission (FCC) voted on its 2017 repeal of Obama-era net neutrality rules, something that is on the table in the upcoming election process as well.  (Reuters)
  2. Now that the second stimulus package is paused until after the Nov. 3 presidential election, here are some of the remaining CARES Act benefits and when they expire. (CNBC)
  3. Spinoff sends American International stock soaring. 
  4. Pharmaceutical company sees high demand for specific treatments.
  5. Options volume takes off for slipping Caterpillar stock. 

Earnings 1027

UVOL 1027

Gold, Oil Rose in Today's Session

Oil futures rose today as Tropical Storm Zeta disrupts oil production. December-dated crude gained $1.01, or 2.6%, to settle at $39.57 a barrel. 

Gold futures settled higher for their sixth gain in seven sessions, after the data revealing a fall in U.S. consumer confidence. December gold rose $6.20, or 0.3%, to settle at $1,911.90 an ounce.


Stop leaving money on the table with the same old broken options trading approach...

There is no options strategy that more perfectly capitalizes during earnings season better than this simple call and put buying strategy. Perfect for aggressive traders looking to recover their suffering portfolios so far in 2022. With the simplest possible options strategy, Schaeffer's team with 100+ years of options trading excellence, target 200% gains on every single trade. So many trades are being beaten down by the market, but don't be one of them! Don't waste another second... join us right now before the next trade is released! 

Schaeffer's Daily Bulletin Offer


Special Offers from Schaeffer's Trading Partners