Dow Jones Industrial Average Falls Triple Digits for Second Straight Day

How One XLF Trader Made $1.7M

by Karee Venema |

Published on Apr 19, 2017 at 4:27 PM

Despite a quick trek into positive territory at the open, the Dow Jones Industrial Average (DJIA) spent nearly the entire session moving lower, succumbing to a negative earnings reaction for Dow stock IBM. Steep declines from oil major Chevron only increased pressure on the blue-chip barometer, with the Dow closing with a second consecutive triple-digit loss. While declining energy stocks sent the S&P 500 Index (SPX) to a loss, as well, the Nasdaq Composite (COMP) outperformed on solid earnings from Lam Research and Intuitive Surgical.

Continue reading for more on today's market, including:

  • How one XLF options trader made $1.7 million.
  • The tech stock that could be ripe for a bullish contrarian play.
  • Sell in May and go away? Maybe not, per this Dow signal that called the Trump Rally.
  • Plus, Skechers options hot ahead of earnings; 3 Dow stocks to have on the earnings watch list; and why we didn't trade Merck calls.

The Dow Jones Industrial Average (DJIA - 20,404.49) closed the session down 118.8 points, or 0.6%, but off its session low. IBM stock led the 22 Dow decliners with its 4.9% drop, while Merck paced the eight advancers with a 0.6% gain.

The S&P 500 Index (SPX - 2,338.17) edged above 2,350 in intraday action, before closing down 4 points, or 0.2%. The Nasdaq Composite (COMP - 5,863.03) outperformed its peers, adding 13.6 points, or 0.2%.

The CBOE Volatility Index (VIX - 14.93) added 0.5 point, or 3.5%.

closing indexes summary april 19
nyse and nasdaq stats april 19

5 Items on Our Radar Today:

  1. The Fed's Beige Book showed an increase in wage growth across the central bank's 12 districts, though inflation stayed perched at a modest level. Additionally, the report said "a larger number of firms mentioned high turnover rates and more difficulty retaining workers," while homebuilders and energy-related companies showed "improved conditions." (MarketWatch)
  2. Twenty-First Century Fox released a statement today saying "Bill O'Reilly will not be returning to the Fox News Channel," amid allegations of sexual harassment surrounding "The O'Reilly Factor" host. Last summer, Roger Ailes resigned as CEO of Fox News after several sexual harassment allegations had been levied against him, and Fox said the release of O'Reilly was part of the company's "consistent commitment to fostering a work environment built on the values of trust and respect."  (CNBC)
  3. With earnings due out tomorrow night, options bulls blasted Skechers stock.
  4. Travelers, Verizon, and Visa will report earnings tomorrow morning -- putting this trio of Dow stocks on the must-watch list.
  5. 3 reasons we didn't recommend buying call options on Merck.

corporate earnings april 19
unusual options activity april 19
Data courtesy of 
Trade-Alert

Commodities

Oil prices dropped to their lowest level in more than two weeks, following a surprise build in domestic gasoline supplies. At the close, May-dated crude was down $1.97, or 3.8%, at $50.44 per barrel -- its steepest slide in six weeks.

June-dated gold settled down $10.70, or 0.8%, at $1,283.40 an ounce -- leaving its daily win streak at five -- as the U.S. dollar bounced back. Gold continued to decline in after-hours trading following the release of the Fed's Beige Book, but has since recovered.
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