For Aug. 5, 2015, here's a look at the Dow Jones Industrial Average today, earnings reports, the top stock market news, and stocks to watch based on today's market moves...
How Did the Stock Market Do Today?
Dow Jones: 17,540.47; -10.22; -0.06%
S&P 500: 2,099.84; +6.52; +0.31%
Nasdaq: 5,139.94; +34.40; +0.67%
The DJIA today fell 10 points after a weak private employment report dampened expectations for a September rate hike, and shares of Walt Disney Co. (NYSE: DIS) plunged 9.3% after the company received a series of downgrades in the wake of its quarterly earnings report. The company cited slowing growth to its park attendance and concerns about its media outlets.
This morning, the ADP employment report stated that job growth in the private sector slowed down in July, with private employers hiring just 185,000 employees last month. That was off from economist expectations of 215,000. However, the services industry indicated a near-decade high in industry activity thanks to strong economic growth.
The S&P 500 Volatility Index (VIX), the market's fear gauge, fell 4.2% on the day.
Top Stock Market News Today
- Stock Market News: The Nasdaq gained 34 points, buoyed by Google Inc. (Nasdaq: GOOG, GOOGL) and Facebook Inc. (Nasdaq: FB). However, a weak private sector hiring report has raised concerns about Friday's July unemployment figures. Investors are looking for any hints on when the U.S. Federal Reserve may increase interest rates. Meanwhile, jitters in the Greek stock market are weighing on investor sentiment. Since the Greek market reopened on Monday, its financial sector has seen banking stocks fall by more than 64%, while the broader market is down 19%.
- Oil Moves: Oil prices slipped again today to multi-month lows as traders raised concerns about oversupply and high inventory levels in gasoline and distillates. WTI crude futures for September slipped 1.3% to hit $45.14 per barrel. Meanwhile, Brent oil prices dipped 0.6% to $49.68 per barrel. Prices were back to their lowest levels since March as the U.S. Energy Information Administration reported that oil stocks fell last week, but gasoline inventory levels were rising during the summer driving season. Last week, the United States added 811,000 barrels of gasoline to inventories, while economists anticipated a decline. The S&P 500 Energy index fell 0.8% on the day.
- On Tap Wednesday: Tomorrow, investors will focus on the weekly jobless claims report and prepare for Friday's July unemployment numbers, which could be the major catalyst for the Fed to make a decision in September on how it will handle monetary policy. Companies reporting earnings on Thursday include 3D Systems Corp. (NYSE: DDD), Duke Energy Corp. (NYSE: DUK), EOG Resources Inc. (NYSE: EOG), Michael Kors Holdings Ltd. (NYSE: KORS), Monster Beverage Corp. (Nasdaq: MNST), Mylan NV (Nasdaq: MYL), New York Times Co. (NYSE: NYT), Orbitz Worldwide Inc. (NYSE: OWW), SeaWorld Entertainment Inc. (NYSE: SEAS), Teekay Corp. (NYSE:TK), Viacom Inc. (Nasdaq: VIAB), and Zynga Inc. (Nasdaq: ZNGA).
Stocks to Watch: TWX, AAPL, NFLX, ETSY, LL
- Stocks to Watch No. 1, TWX: Shares of Time Warner Inc. (NYSE: TWX) slumped 9% after Walt Disney Co. (NYSE: DIS) issued a sour outlook for its cable business. Disney's statements indicate that more people are switching from paid television to video streaming than analysts had expected. Shares of Comcast Corp. (Nasdaq: CMCSA) slipped 4.7% on the day. Time Warner also said it will maintain its 2015 earnings outlook.
- Stocks to Watch No. 2, AAPL: Shares of Apple Inc. (Nasdaq: AAPL) gained 0.7% on the day, as the tech giant reversed a five-day losing streak that saw it lose more than $100 billion in market cap. The stock had slipped below its 200-day moving average, raising concerns that it still might continue to shed value.
- Stocks to Watch No. 3, NFLX: Shares of Netflix Inc. (Nasdaq: NFLX) hit another intraday record high today before finishing up 2.1%. The online streaming giant announced it plans to expand operations into Asia. It also announced it will provide its employees who are new parents up to one year of paid leave. This will spark greater pressure on other companies in the sector to provide similar benefits in order to attract talent.
- Stocks to Watch No. 4, ETSY: Shares of Etsy Inc. (Nasdaq: ETSY) plunged more than 28% this afternoon after the company reported a massive loss in the second quarter. The online marketplace did beat Wall Street estimates but still saw its per-share profits decline by $0.07. Traders sold off after the company reported its slowest growth rate of all time and raised new concerns about the impact of a stronger dollar on its long-term growth outlook.
- Stocks to Watch No. 5, LL: Shares of Lumber Liquidators Holdings Inc. (NYSE: LL) plunged 28% after the company reported a surprising second-quarter loss. The firm has been crushed by allegations that some of its foreign-sourced wood paneling contains high levels of carcinogens.
What Investors Must Know This Week
- The Top Three High-Return Investments to Buy Today
- Is Netflix Stock a Buy After Stock Split and Earnings Beat?
- The Real Impact of the Iran Nuclear Deal on U.S. Oil Prices
Stay informed on what's going on in the markets by following us on Twitter @moneymorning.
About the Author
Garrett Baldwin is a globally recognized research economist, financial writer, consultant, and political risk analyst with decades of trading experience and degrees in economics, cybersecurity, and business from Johns Hopkins, Purdue, Indiana University, and Northwestern.