Crude took a dive after the EIA downwardly revised its 2015 and 2016 price forecasts
It was as if yesterday never happened, with the Dow Jones Industrial Average (INDEXDJX:DJI) surrendering all of Monday's triple-digit gains -- and moving back into the red on a year-to-date basis. There were a handful of factors stoking the day's bearish flames, including a soaring greenback -- which rose to a 12-year high versus the euro -- a sharp decline in crude oil, and growing concern over when the Federal Open Market Committee (FOMC) will raise interest rates. This sell-off spread elsewhere on the Street, as well, with the S&P 500 Index (SPX) -- which gains a new component later this week -- also falling south of its 2015 breakeven mark, while the Nasdaq Composite (COMP) gave back 1.7%.
Continue reading for more on today's market, including:
The Dow Jones Industrial Average (DJI - 17,662.94) spent the entire day in the red, eventually settling at its session low -- down 332.8 points, or 1.9%. Twenty-nine of the Dow's 30 components closed lower today, led by a 3.6% plunge for United Technologies Corporation (NYSE:UTX). DuPont (NYSE:DD) was the only blue chip to advance in today's trading, tacking on 0.3%.
It was a similar set-up on the S&P 500 Index (SPX - 2,044.16), which closed right at its intraday low -- off 35.3 points, or 1.7%. The Nasdaq Composite (COMP - 4,859.79), meanwhile, surrendered 82.6 points, or 1.7%.
The CBOE Volatility Index (VIX - 16.69) popped 1.6 points, or 10.8%, to notch a third consecutive close north of its 200-day moving average -- as well as its highest settlement since Feb. 11.
5 Items on Our Radar Today:
- In the wake of Friday's stellar payrolls report, the Labor Department's Job Openings and Labor Turnover Survey (JOLTS) showed that there were 5 million job openings at the end of January -- the most in 14 years. Elsewhere on the economic front, wholesale inventories unexpectedly rose. (The Wall Street Journal; CNBC)
- In his final speech as president of the Dallas Federal Reserve, noted hawk Richard Fisher said, "The idea that we can substitute a steeper future funds-rate path for an early liftoff seems risky to me. I would rather the FOMC raise rates early and gradually than late and steeply." Fisher will step down from his post later this month after 10 years on the job. (CNBC)
- GPRO managed to defy the day's bearish bias, tacking on 2.1%. Options traders responded in kind, betting on the stock to break through this round-number barrier in the near term.
- Speculators took decidedly different routes on sector peers Facebook Inc (NASDAQ:FB) and Twitter Inc (NYSE:TWTR).
- This retailer rallied to a fresh 52-week peak in the wake of an upbeat earnings report, while this Internet issue sunk after an initial post-earnings uptick.
For a look at today's options movers and commodities activity, head to page 2.
Commodities:
Crude oil got hit by a strengthening dollar and the Energy Information Administration's (EIA) downwardly revised 2015 and 2016 forecasts for crude prices. By the close, April-dated crude was off $1.71, or 3.4%, at $48.29 per barrel.
The dollar's rise sent gold lower -- with the malleable metal erasing all of yesterday's modest gains. At session's end, gold for April delivery was off $6.40, or 0.6%, at $1,160.10 per ounce -- its lowest settlement since November.