DJIA drops 78 knackered by Microsoft & Data drama
The Dow slid nearly 80 points and the Nasdaq Composite lost 1% on Monday as Microsoft led a barrage of selling in the technology sector, the euro slumped and traders brace for key reports due out later in the week.
After a brief trip into the black, stocks eventually swooned in the face of European debt concerns, discouraging economic data, and a dose of Dow-component drama. On the economic front, the Street balked at a steeper-than-expected slide in U.S. factory orders in August, which overshadowed news of a larger-than-expected rise in the National Association of Realtors' pending home sales index.
Meanwhile, a batch of negative analyst notes fanned the blue chips' bearish flames, with Goldman Sachs cutting its rating on Microsoft Corp. (MSFT), and Deutsche Bank issuing a "sell" recommendation on Alcoa, Inc. (AA) just days before the company's unofficial start to the third-quarter earnings season. In addition, a spat between American Express (AXP) and the Justice Department added salt to the Dow's wounds, with the blue chip barometer kicking off the week 78 points south of breakeven.
However, always the optimist, Senior Technical Strategist Ryan Detrick said that although the market "finally pulled back, the good news is volume was light, and we held the breakout level of 1,131 on the S&P 500 Index."
The Dow Jones Industrial Average (DJIA – 10,751.27) recouped some of its intraday losses by the close, but still finished on a deficit of 78.4 points, or 0.7%. All but six of the Dow's 30 components closed in the red, with AXP blazing the path lower, and JPMorgan Chase leading the five advancing equities; meanwhile, the shares of Travelers Cos. finished right where they started.
Thanks to today's dismal price action, the DJIA settled the session beneath its 10-day moving average for the first time since late August.
The S&P 500 Index (SPX – 1,137.03) also pared a portion of its losses in the final hour of trading, surrendering 9.2 points, or 0.8%, by the close. What's more, the SPX finished south of its own 10-day trendline for only the second time since Aug. 31.
Finally, the Nasdaq Composite (COMP – 2,344.52) swallowed the steepest loss, giving up 26.2 points, or 1.1%, to end beneath its 10-day moving average for the first time in more than a month.
Crude futures retreated from a two-month peak today, thanks to a stronger dollar. Renewed concerns about European debt lifted the greenback from a multi-month low versus the euro, making it more expensive for holders of foreign currencies to scoop up the dollar-denominated commodity. Against this backdrop, crude oil for November delivery shed 11 cents, or 0.1%, to finish at $81.47 per barrel.
The Dow slid nearly 80 points and the Nasdaq Composite lost 1% on Monday as Microsoft led a barrage of selling in the technology sector, the euro slumped and traders brace for key reports due out later in the week.
After a brief trip into the black, stocks eventually swooned in the face of European debt concerns, discouraging economic data, and a dose of Dow-component drama. On the economic front, the Street balked at a steeper-than-expected slide in U.S. factory orders in August, which overshadowed news of a larger-than-expected rise in the National Association of Realtors' pending home sales index.Meanwhile, a batch of negative analyst notes fanned the blue chips' bearish flames, with Goldman Sachs cutting its rating on Microsoft Corp. (MSFT), and Deutsche Bank issuing a "sell" recommendation on Alcoa, Inc. (AA) just days before the company's unofficial start to the third-quarter earnings season. In addition, a spat between American Express (AXP) and the Justice Department added salt to the Dow's wounds, with the blue chip barometer kicking off the week 78 points south of breakeven.
However, always the optimist, Senior Technical Strategist Ryan Detrick said that although the market "finally pulled back, the good news is volume was light, and we held the breakout level of 1,131 on the S&P 500 Index."
The Dow Jones Industrial Average (DJIA – 10,751.27) recouped some of its intraday losses by the close, but still finished on a deficit of 78.4 points, or 0.7%. All but six of the Dow's 30 components closed in the red, with AXP blazing the path lower, and JPMorgan Chase leading the five advancing equities; meanwhile, the shares of Travelers Cos. finished right where they started.
Thanks to today's dismal price action, the DJIA settled the session beneath its 10-day moving average for the first time since late August.
The S&P 500 Index (SPX – 1,137.03) also pared a portion of its losses in the final hour of trading, surrendering 9.2 points, or 0.8%, by the close. What's more, the SPX finished south of its own 10-day trendline for only the second time since Aug. 31.Finally, the Nasdaq Composite (COMP – 2,344.52) swallowed the steepest loss, giving up 26.2 points, or 1.1%, to end beneath its 10-day moving average for the first time in more than a month.
Crude futures retreated from a two-month peak today, thanks to a stronger dollar. Renewed concerns about European debt lifted the greenback from a multi-month low versus the euro, making it more expensive for holders of foreign currencies to scoop up the dollar-denominated commodity. Against this backdrop, crude oil for November delivery shed 11 cents, or 0.1%, to finish at $81.47 per barrel.HAPPY TRADING
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