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Crude oil fell into territory not charted since April 2009
The Dow Jones Industrial Average (INDEXDJX:DJI) started 2015 with an early triple-digit advance, but a bout of uninspiring economic reports took the wind out of the bulls' sails. Specifically, the Institute for Supply Management's (ISM) manufacturing index dropped by more than expected last month -- echoing a chilly report from across the pond -- and U.S. construction spending took a surprise dive in November. Elsewhere, crude oil futures continued to plumb new five-year lows, while the U.S. dollar extended its recent advance. Against this backdrop, the Dow ended a seesaw session with a modest gain, while the S&P 500 Index (SPX) started the New Year fractionally lower.
Continue reading for more on today's market, including:
- Can Electronic Arts Inc.'s (NASDAQ:EA) "Madden NFL" game shed light on Wild Card Weekend? Schaeffer's contributor Adam Warner crunches the numbers.
- 3 companies that could make waves at next week's highly anticipated Consumer Electronics Show (CES).
- Could Netflix, Inc. (NASDAQ:NFLX) option buyers be more bullish? How the streaming video service fared after a day of universal binge-watching.
- Plus ... A dose of ugly data, payback for the hack on Sony Corp (ADR) (NYSE:SNE), and optimistic action on a pair of retailers.
The Dow Jones Industrial Average (DJI - 17,832.99) explored a range of more than 220 points today, but ultimately called it a wash, ending 9.9 points, or 0.1%, higher in the first session of 2015. Exactly half of the Dow's 30 components ended in the black, led by a 1.1% gain for Visa Inc (NYSE:V). Home Depot (NYSE:HD) paced the decliners, dropping 1.5%. For the week, the Dow dipped 1.2%.
In similar fashion, the S&P 500 Index (SPX - 2,058.20) traded on both sides of breakeven, but finished 0.7 point lower, bringing its losing streak to three sessions. The Nasdaq Composite (COMP - 4,726.81) also flirted with gains and losses, settling on a deficit of 9.2 points, or 0.2%. For the week, the SPX and COMP shed 1.5% and 1.7%, respectively.
The CBOE Volatility Index (VIX - 17.79) resolved to the downside, dropping 1.4 points, or 7.3%. However, the index ended a second straight session atop its 10-day and 20-day moving averages. For the week, the "fear barometer" rallied 21.9%.
5 Items on Our Radar Today:
- The ISM manufacturing index fell by more than expected in December, in part due to a West Coast slowdown amid labor negotiations. The ISM index now sits at its lowest point since June. Meanwhile, U.S. construction spending took a surprise dip in November, marking the first monthly decline since June. (MarketWatch; Reuters)
- The U.S. issued new sanctions against North Korea for "ongoing provocative, destabilizing, and repressive actions and policies, particularly its destructive and coercive cyberattack" on SNE. (CNBC)
- Analysts applauded the sales momentum at Bed Bath & Beyond Inc. (NASDAQ:BBBY), ahead of the company's turn in the earnings confessional next week.
- Option players rolled the dice on happy holiday returns for Best Buy Co Inc (NYSE:BBY).
- Speculators are counting on more downside for beleaguered United States Steel Corporation (NYSE:X).
For a look at today's options movers and commodities activity, head to page 2.
Commodities:
After suffering a 46% annual drop in 2014, crude futures got off to a rough start in 2015. Dragged lower by a stronger U.S. dollar and oversupply concerns, February-dated oil shed 58 cents, or 1.1%, to settle at $52.69 per barrel -- black gold's lowest close since April 2009. For the holiday-shortened week, crude shed 3.7%.
Gold, meanwhile, edged higher today, as lackluster economic data sparked "safe haven" demand. By the close, February-dated gold added $2.10, or 0.2%, to land at $1,186.20 per ounce. For the week, however, the malleable metal gave up 0.8%, marking its third straight weekly decline.