The 4 Stocks That Sank the DJIA on Wednesday

Paul Ausick

May 11, 2016: Markets opened lower on Wednesday as the dollar weakened further against the euro, dragging crude prices down along with it. This morning’s crop of earnings reports were mostly sour, with Macy’s and Disney leading the parade downhill. A sharp drop in U.S. crude oil inventories pushed crude prices up sharply, but Wednesday’s nearly 2% drop in the consumer discretionary sector was too much even for crude to overcome. WTI crude oil for June delivery settled at $46.23 a barrel, up about 3.5% for the day and a 6-month high. June gold rose 0.9% on the day to settle at $1,275.50. Equities were headed for a lower close shortly before the closing bell as the DJIA traded down 1.13% for the day, the S&P 500 traded down 0.85%, and the Nasdaq Composite traded down 0.89%.

The DJIA stock posting the largest daily percentage loss ahead of the close Wednesday was The Walt Disney Co. (NYSE: DIS) which traded down 4.33% at $101.98. The stock’s 52-week range is $86.25 to $122.08. Trading volume was more than 3 times the daily average of around 7.2 million. The Mouse House issued disappointing first-quarter results after markets closed Tuesday evening.

Nike Inc. (NYSE: NKE) traded down 3.65% at $57.04. The stock’s 52-week range is $47.25 to $68.19. Trading volume was about 15% above the daily average of around 9.3 million. The athletic gear maker issued its sustainable business report this morning, but the downturn in consumer discretionary stocks caught Nike too.

Wal-Mart Stores Inc. (NYSE: WMT) traded down 2.65% at $66.48. The stock’s 52-week range is $56.30 to $79.94. Volume was about 50% higher than the daily average of around 8.8 million shares. The retailer filed suit against another DJIA member, Visa, this morning, in a matter related to requiring customers to sign when using a chip card.

The Home Depot Inc. (NYSE: HD) traded down 2.40% at $134.21. The stock’s 52-week range is $92.17 to $137.82. Volume was about 10% higher than daily average of around 4.5 million shares. The company had no specific news on Wednesday, but it’s another consumer discretionary stock on a bad day to be among that group.

Of the Dow 30 stocks 27 are set to close lower Wednesday and 3 are on track to close higher.