Visa Hits Dow; S&P, Nasdaq Walloped By Sinking Tech Stocks
The recent weakness in tech stocks continued
The Dow explored a range of more than 200 points on both sides of breakeven today, with the blue-chip index eventually closing lower as a negative earnings reaction for Visa (V) offset an analyst-induced pop for Merck (MRK). This volatile trading was seen elsewhere, too, with the S&P 500 and Nasdaq slumping to their third straight losses on extended weakness in FAANG stocks. The turbulent price action will likely continue this week, with a number of market-moving events on the docket -- including Wednesday's Federal Open Market Committee (FOMC) policy announcement, where a surprise outcome could be a risk for stocks.
Continue reading for more on today's market, including:
This rare tech signal is sounding again.The trillion-dollar level to watch on Apple stock this week, courtesy of founder and CEO Bernie Schaeffer.The forex scandal that pressured American Express stock.Plus, a sinking Chinese tech stock; Caterpillar stalls; and a big day for oil.The Dow Jones Industrial Average (DJI - 25,306.83) closed near its session low, down 144.2 points, or 0.6%. Fourteen Dow stocks fell, led by a 3% drop for Visa, while Merck paced the 16 advancers with its 2.1% gain.
The S&P 500 Index (SPX - 2,802.60) gave back 16.2 points, or 0.6%, but maintained a foothold atop the 2,800 mark. The Nasdaq Composite (IXIC - 7,630.00) shed 107.4 points, or 1.4%, for its lowest close since July 5.
The Cboe Volatility Index (VIX - 14.26) added 1.2 points, or 9.4%, to settle north of its 40-day moving average for the first time since July 5.
5 Items on Our Radar Today
General Electric (GE) is looking for a buyer for its digital business, according to the Wall Street Journal. Though still in the early stages, the former Dow member has reportedly hired an investment firm to scout buyers for GE Digital, a key initiative of former GE CEO Jeff Immelt. (MarketWatch)Illinois-based US Foods (USFD) said it is buying Services Group of America -- an Arizona food services firm -- for $1.8 billion in cash. USFD also reported lower-than-expected adjusted second-quarter earnings, and the shares slumped more than 16%, after hitting a record high on Friday. (Chicago Tribune)This tech stock sold off on news of increased scrutiny from the Chinese government.Caterpillar stock rallied into familiar technical resistance after earnings.FireEye options bears made a rare appearance ahead of earnings.
Data courtesy of Trade-Alert
Gold Slips Ahead of Fed
U.S. oil prices elbowed back above the $70 per barrel price point today, underpinned by lingering Middle East tensions. At the close, September-dated crude was up $1.44, or 2.1%, at $70.13 per barrel.
Gold closed lower for a third straight session, as the 10-year Treasury yield climbed closer to the key 3% level. Gold for December delivery fell $1.20 to settle at $1,231.50 an ounce.