Dow Drops 180 in Heavy Trading

Markets today closed lower, despite heavier than average volume. The Dow dropped a full percentage point, losing 181.12 points and closing the day at 17, 919.29. The NASDAQ fell 10,74 points to close out the day's trading at 5,208.12. The S&P 500 split the difference, dipping 9.07 points and closing at 2,119.21.

Oil, Gold, and Copper aff Falling for the Same Reasons

There has been a pattern in the commodities markets lately for anyone paying close attention. The price of crude oil, gold, and copper have all taken major hits recently.
Interestingly, the reason behind the fall of all three is linked to the same basic problem. There is just too much supply and not enough demand.

The demand for crude has fallen pretty publicly, with Europe in shambles and people driving even less. Prices are also down on record-breaking production from the US and OPEC, among other sources. It's a similar story for gold. Since the economy has recovered there just isn't as much call for the metal. Industrial needs are being met, and there's still plenty of supply going unused.

Copper has a similar story, too. Recycling of the metal is at all-time highs, and that is taking a big bite out of industrial demand. In the darkest days of 2008, people were ripping it out of the walls of their foreclosed homes. Now scrap prices are so low that it's hard to make a profit selling copper at all, let alone by vandalizing a house to do it.

IBM (IBM), United Technologies (UTX) Plummet on Earnings

The Dow led the day in losses, and part of the reason why was because the blue chips collapsed. IBM (IBM) plummeted over 10 points, losing 5.86% in real value and closing out the day at $163.07. United Technologies performed even worse in real terms. In dropped over 7 points, losing 7.03% to close the day at $102.71 per share.

Both companies fell hard on the backs of earnings reports which were less than flattering. IBM is struggling to maintain market share in a world where even corporations are embracing Apple's (AAPL) latest iGadget. United Technologies is facing mounting debt and falling revenue, and the shareholders aren't happy.

Harley Davidson (HOG) Share Prices Pop a Wheelie

At least one company had a great earnings report today. Venerable motorcycle manufacturer Harley Davidson (HOG) overcame slower than average overseas sales to make a better than expected profit last quarter. Shares of Harley Davidson were up on the news, gaining nearly 5%, or 2.73 points, to close at $57.67.
Published on Jul 21, 2015
By Aaron Phillips
Aaron Phillips is a financial researcher and journalist based out of Michigan. He regularly writes the IG Daily and IG Weekly columns.

Copyrighted 2020. Content published with author's permission.

Posted in ...