The closely watched ISM manufacturing index cratered to a 10-year low last month
The Dow got off to a rocky start for October, losing over 300 points after the ISM manufacturing index hit its worst reading since June 2009. Respondents pointed to an increased impact from tariffs and the ongoing U.S.-China trade war, and this bleak data point sent stocks reeling ahead of next week's expected meeting between Washington and Beijing -- even as expectations for an October interest rate cut suddenly jumped. Against this backdrop, the S&P and Nasdaq both ended sharply lower, as well.
Continue reading for more on today's market, including:
The Dow Jones Industrial Average (DJI - 26,573.04) dropped 343.8 points, or 1.3%. Visa (V) was the top performer today, up 1.3% to lead the four gainers, while 3M (MMM) led the 26 losers with a 3.7% drop.
The S&P 500 Index (SPX - 2,940.25) ended 36.5 points lower, or 1.2%, while the Nasdaq Composite (IXIC - 7,908.69) closed down 90.65 points, or 1.1%.
The Cboe Volatility Index (VIX - 18.56) added 2.3 points, or 14.3%.
5 Items on Our Radar Today
- Coca-Cola (KO) announced earlier today that it would be launching its energy drink products in the U.S. later this year. The beverages, called Coca-Cola Energy, have already been released in Britain, Spain, and Germany, and aim to compete directly with energy drink heavyweight Monster Beverage (MNST), which the blue-chip company already owns a 18.7% stake in. (CNBC)
- Eight drug companies have asked the appeals court to remove U.S. District Judge Dan Polster in Cleveland from presiding over nationwide opioid litigation, with concerns over Polster's biases in the case. The request comes just three weeks before the first opioid trial in a federal court, set for Oct. 21. (Reuters)
- Why HD stock could catch even more tailwinds on the charts.
- VMware stock got a boost on bullish analyst attention.
- The penny stock that skyrocketed on FDA fast track status.
There are no earnings of note today.
Data courtesy of Trade-Alert
Oil Keeps Sinking on Ecuador's Plans to Leave OPEC
Today's gloomy manufacturing data has extended black gold's losses even further, marking the commodity's sixth consecutive day in the red on worries over slowing energy demand. This was compounded by Ecuador's announcement that it plans to leave the Organization of the Petroleum Exporting Countries (OPEC) by the end of this year, with the country expected to abandon the cartel's production cuts at that time. November-dated crude futures shed $0.45, or 0.8%, to settle at $53.62 per barrel.
Gold futures reversed some of yesterday's losses as concerns over a shaky U.S. economy led more investors to the precious metal. Gold for December delivery rose $16.10, or 1.1%, to settle at $1,489 an ounce.