The DJIA closed lower as a traders considered central bank moves
Central bank noise at home and abroad kept U.S. indexes in the red for a second straight day. The Dow Jones Industrial Average (DJIA) drifted lower throughout the day, as traders digested smaller-than-expected easing measures out of the European Central Bank (ECB), Fed Chair Janet Yellen's relatively hawkish testimony before the Joint Economic Committee, and a string of economic reports. By the close, the Dow was sitting on a hefty triple-digit deficit, the S&P 500 Index (SPX) was in the red year-to-date, and the Nasdaq Composite (COMP) was at a two-week low.
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The Dow Jones Industrial Average (DJIA - 17,477.67) dropped a hefty 252 points, or 1.4%, as Travelers Companies Inc (NYSE:TRV) paced the 28 losers with a 3% loss. Of the 30 blue-chip components, only Wal-Mart Stores, Inc. (NYSE:WMT) and General Electric Company (NYSE:GE) managed to finish in the black, adding 1.2% and 0.2%, respectively.
The S&P 500 Index (SPX - 2,049.62) lost 29.9 points, or 1.4%, landing in negative year-to-date territory, and marking the steepest decline since late September. The Nasdaq Composite (COMP - 5,037.53) dropped 85.7 points, or 1.7%.
The CBOE Volatility Index (VIX - 18.11) finished the day up 2.2 points, or 13.8%, for its highest close in more than two weeks.
5 Items on Our Radar Today:
- Weekly jobless claims rose more than expected, but remain below the key 300,000 level, indicating a healthy labor market. Meanwhile factory orders for U.S. goods rose 1.5% for October, after declining the previous month, but still fell just shy of predictions. (Reuters, via CNBC; MarketWatch)
- The Institute for Supply Management (ISM) non-manufacturing index fell to 55.9 in November, from 59.1 the month before. Economists were expecting the index to dip to just 58.0 last month. (Reuters, via CNBC)
- Checking in with Square Inc (NYSE:SQ) after two weeks on the market.
- How are these 3 trucking stocks faring with a deep decline in North American orders?
- As quantitative easing from the ECB could help the euro, these 3 stocks could face currency headwinds.
Commodities:
U.S. crude oil managed to finish in the black today, thanks to a weakening dollar and ahead of a meeting of the Organization of the Petroleum Exporting Countries (OPEC). In addition, traders weighed a report suggesting Saudi Arabia will propose an OPEC production cut, though the country called the rumors "baseless." Crude oil for January finished $1.14, or 2.9% higher, at $41.08 a barrel.
Gold also rebounded to a positive close, bouncing back from a six-year low, as ECB news and a weaker dollar overshadowed expectations for a December rate hike from the Fed. February gold futures ended the day up $7.40, or 0.7%, at $1,061.20 an ounce.
Today's Unusual Call and Put Volume