US stocks trading lower. McDonalds and Starbucks under pressure

The major US stock indices are trading lower. The Dow and the S&P are on pace for their third consecutive losing day. Remember all three indices are working on six weeks of gains. That string is at risk with more than half of the trading week remaining.

A snapshot of the market currently shows:

• Dow industrial average is trading down -283 points or -0.67% at 42634.64
• S&P index is trading down -20.44 points or -0.35% at 5831
• NASDAQ index down -88.6 points or -0.46% at 18487.65

The small-cap Russell 2000 is down -8.33 points or -0.37% at 2223.28.

Shares of McDonald’s are trading down -6.22% after announcing a E. coli outbreak in its quarter pounder sandwiches. Looking at the daily chart, the gap lower took the price below the 50 day moving average at $296.54. Stay below that level would give sellers some confidence.

For the trading year, the price started near $296. The low price reached in July extended down to $243.53 before starting a search to the upside after announcing their $5 dollar value meal. The price high reached earlier this week extended up to $317.90. For the year, the prices now down -0.90% (near unchanged).

Looking at other stocks

• Starbucks preannounced lower-than-expected earnings and its shares are down -2.41% in early trading.
• Nvidia shares are trading down -1.79%

This article was written by Greg Michalowski at www.forexlive.com.