DOW down more than 800 points!

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Stock Market Update Wednesday, October 2nd, 2019

Stocks dropped for the 2nd day in a row today.

In just 2 days the DOW is down more than 800 points! And the S&P has lost 3.0%!

Why the drop?

Yesterday it was weak manufacturing data leading stocks lower.

Stocks were slammed after September ISM Manufacturing PMI came out at its worst level since June 2009.

According to Timothy Fiore, chair of the ISM survey committee, “global trade remains the most significant issue” when it comes to the contraction in manufacturing that we’ve experienced.

And today, it was more weak data moving the market.

ADP Non-Farm Jobs for September rose by 135,000 (vs. a 140,000 forecast).

Although it wasn’t much of a miss, a possible job market slowdown combined with back-to-back weak data that could indicate a slowing economy was enough to send stocks lower for the 2nd day in a row.

The major indices opened the day with losses and continued to slide in the morning. There was a pause in selling in the afternoon, and a small rally in late trading. But the damage was done.

Here’s where the major indices ended the day:

  • The S&P finished with a 1.8% loss. Down 53 points, the S&P ended at 2,888.
  • The DOW ended lower by 1.9%. Dropping 494 points, the DOW closed at 26,079.
  • The NASDAQ was down 1.6%. With a 123 point loss, the NASDAQ finished at 7,786.

Crude Oil (CL) dropped for the 7th day in a row and closed below $53 for the first time in almost 2 months. With a 2.0% loss, CL ended at $52.54 a barrel.

While stocks have been hammered, Gold (GC) has rallied. Gold is up to 2.4% in just 2 days, with investors embracing the metal in a “flight to safety.”

The broker wars heated up again today after TD Ameritrade (AMTD) announced $0 commissions on U.S. stock and ETF trades (from $6.95 a trade). The price change goes into effect tomorrow.

The move is a direct response to Interactive Brokers (IBKR) announcing zero commissions last week, and to Charles Schwab (SCHW) who joined the $0 commissions movement yesterday.

TD Ameritrade closed lower by another 3.3% today. Interactive Brokers dropped 2.9% and Schwab lost 3.3%.

Tomorrow’s ISM Non-Manufacturing data release will take on a little more significance than normal. After Tuesday’s weak manufacturing data, traders are looking towards tomorrow’s release at 10:00am ET, to see if the weak economic data continues.

Here is the economic calendar for the week:

Real Time Economic Calendar provided by Investing.com.

This Stock Market Update was provided by Rockwell Trading Services LLC.


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