Dow, S&P Surrender 2018 Gains in Heavy Selling
A December rate hike is still on the table after the latest Beige Book report
Stocks extended yesterday's sell-off, with major U.S. equity benchmarks closing deep in the red. Early enthusiasm over Boeing's (BA) post-earnings surge evaporated after disappointing housing data -- and selling intensified in the afternoon, as the Fed's Beige Book release appeared to bolster the case for a December rate hike amid rising costs and a tightening labor market. As a result, stocks fell to their lowest daily closing levels in months.
Continue reading for more on today's market, including:
One analyst thinks this red-hot pharma stock could triple.Why now's the time to trade railroad stocks.How options traders played Twitter ahead of earnings.Plus, why oil futures bounced today; DDD lands a bull note; and Goldman's defense pick.The Dow Jones Industrial Average (DJI - 24,583.42) lost 608 points, or 2.4%, after earlier touching a session low of 24,533.19. A mere five Dow stocks ended the day higher, with Procter & Gamble (PG) leading the way, closing up 2.6%. On the flip side, United Technologies (UTX) paced the 25 losers with a 6.1% drop. Today marked the Dow's lowest daily close since July 6.
The S&P 500 Index (SPX - 2,656.10) shed 84.6 points, or 3.1%, extending its daily losing streak to six. Meanwhile, the Nasdaq Composite (IXIC - 7,108.40) fell 329.1 points, or 4.4%, to enter correction territory -- it's now down 12.6% from its Aug. 30 all-time intraday high. The SPX and Nasdaq both hit their lowest closing levels since May 3.
The Cboe Volatility Index (VIX - 25.23) jumped 4.5 points, or 21.8%, for the day. That puts the "fear index" back above this year's half-high at 25.15.
5 Items on our Radar Today
The Secret Service today said explosive devices were intercepted en route to former President Barack Obama and former Secretary of State Hillary Clinton, and appeared similar to a device mailed to billionaire investor George Soros earlier this week. Devices were also sent to CNN's New York studios, former Attorney General Eric Holder, and Rep. Maxine Waters. President Donald Trump publicly condemned the attempted attacks, saying, "acts of threats or political violence have no place in the United States of America." (MarketWatch)The Food and Drug Administration (FDA) today approved Xofluza, the first new antiviral flu treatment in over 20 years. Research showed the single-dose drug can reduce a patient's sick time by more than a day, if taken within the first 48 hours of symptoms appearing. (CNBC)Analysts adjusted their outlook on JetBlue stock after earnings. 3D Systems stock scored a pre-earnings upgrade.Goldman Sachs just added this defense stock to its conviction list.
Data courtesy of Trade-Alert
Oil Bounces on Big Gasoline Drawdown
Oil futures edged higher today, recovering from the prior session's two-month low as domestic gasoline supplies fell by a steeper-than-forecast 4.8 million barrels. December-dated crude added 39 cents, or 0.6%, to settle at $66.82 per barrel.
Gold, however, fell from its three-month highs as a stronger dollar weighed heavy. December-dated gold futures shed $5.70, or 0.5%, to close at $1,231.10 per ounce.