Schaeffer's Top Stock Picks for '25

Energy, Data Smack Dow Jones Industrial Average Into the Red

How the 'Leverage Ratio' Nailed a Big Bearish Trade

Aug 3, 2015 at 4:24 PM
facebook X logo linkedin


The Dow Jones Industrial Average (DJIA) started the month of August on a rough footing, eventually notching its third consecutive daily loss. Crude's sell-off took its toll on energy stocks, while the broader market felt the sting from a round of less-than-stellar economic data -- auto sales notwithstanding. Among individual equities, Twitter Inc (NYSE:TWTR) caught traders' attention with its dismal session and new record low. Meanwhile, looking ahead to tomorrow, Wall Street is gearing up for another big day of earnings.

 

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

 

 

The Dow Jones Industrial Average (DJIA - 17,598.20) spent almost the entire day in the red, and finished on a loss of 91.7 points, or 0.5%. Ten of the Dow's 30 components settled in the green, led by The Coca-Cola Co's (NYSE:KO) 1.1% gain. Chevron Corporation (NYSE:CVX) once again paced the 19 blue-chip losers, sliding 3.3%. JPMorgan Chase & Co. (NYSE:JPM) finished flat.

The S&P 500 Index (SPX - 2,098.04) dropped 5.8 points, or 0.3% -- and below the round 2,100 century level. The Nasdaq Composite (COMP - 5,115.38) lost 12.9 points, or 0.3%.

The CBOE Volatility Index (VIX - 12.56) added 0.4 point, or 3.6% -- its first positive session in the last five.

 

150803recap1

 

150803recap2

 

 

5 Items on Our Radar Today:

 

  1. It was a mixed day on the economic front, as construction spending rose less than expected, and the Institute for Supply Management's (ISM) manufacturing index unexpectedly slipped. Meanwhile, factory activity inched upward, personal income increased more than projected, and personal spending rose in line with estimates. (CNBC; Reuters)
  2. Amazon.com, Inc. (NASDAQ:AMZN) has implemented changes to its Prime service, in what looks like an attempt to crack down on sharing benefits with extended family members and friends. (TechCrunch)
  3. President Barack Obama's environmental plans took their toll on fossil fuel stocks, but failed to lift alternative energy names.
  4. Three big-name companies headed to the earnings confessional tomorrow night -- along with one blue chip.
  5. It was a brutal day for high-end retailers, including Michael Kors Holdings Ltd (NYSE:KORS) and Coach Inc (NYSE:COH).

 

150803recap3

 

150803recap4

 

150803recap5

 

Commodities:

 

Crude got hammered amid a generally weak round of economic data out of the U.S. and China, which raised concerns about demand. By day's end, September-dated futures shed $1.95, or 4.1%, to land at $45.17 per barrel -- the commodity's biggest single-day drop in a month.

 

Gold for December delivery got hit by a stronger dollar amid concerns that Friday's nonfarm payrolls report could pave the way for a September interest-rate hike. At the close, the malleable metal was down $5.70, or 0.5%, at $1,089.40 per ounce.

 

 
 

Which of These SUB-$5 Stocks Could 26x From Here? (AD)

He called a rare 11x on Tesla…

Then he called a 26x on Workhorse…

Then an even rarer 35x on Nio Inc…

Now Tim Bohen says these 5 tiny “America First” stocks are next up in 2025.

They’re trading for less than $5 right now.

But thanks to Elon & Trump’s new alliance…

They could be off to the races in Trump’s first 100 days.

And right now for a limited time…

You can get the names & tickers for just $1 here. (AD)

10 Stock Picks FREE
 
 

Featured Articles from Trusted Partners:

🚀 One Stock Pick Could Change Everything in 2025
What if one stock pick could define your success next year? Get 10 expert-vetted stocks set for 2025—plus 5 bonus picks to watch now. Get the Report →

🆕 New Options Need New Trading Strategies
Zero-DTE options are the newest (and hottest) options to trade.  Professional traders have rushed into the market and are making a mint.  Don’t get left behind - learn all about these options, how to trade them, market setups to profit from, plus much more. Download now →

👀 Revealed: 3 Defensive Stocks for Your Portfolio
Worried about the market? This free report reveals 3 under-the-radar defensive stocks for uncertain times in any kind of economy.

 

 
 

FREE Report Download

 

Follow us on X, Follow us on Twitter