Here we go again, stop me if you have heard this one before. A combination of poor earnings, rising crude, and a dropping dollar have cost the Dow Jones Industrial Average more than 100 points in the opening moments of trading. Let's take a look at the factors that have lead to this morning's rough open.
- General Motors (GM) posted a wider-than-expected third-quarter loss
- The dollar declined to new lows as a top Chinese official called for the country to shift more of its sizeable foreign exchange reserves out of the embattled American denomination
- Black gold advanced as high as $98.62 per barrel in electronic trading ahead of this morning's inventory reports
Currently, the Dow's drop stands at 115 points, but the good news is that the venerable index continues to be positioned above potential support from its 10-month moving average. Of course, this trendline is moving through the 13,300 level, so we could have a bit more of a drop before realizing the support. As the drop continues, let's not forget that we have been at the mercy of the dollar and crude prices, so let's keep an eye out for the inventory reports and see what will happen immediately after.