Google parent Alphabet stock led a tech sell-off
The Dow Jones Industrial Average (DJIA) gave up early gains, turning lower in afternoon trading after Senate Republicans delayed a vote on healthcare legislation until after the July 4 recess. Meanwhile, tech giant Google dragged the Nasdaq Composite (COMP) into the red, hit by a record antitrust fine from the European Union. As a result, the CBOE Volatility Index (VIX) -- often known as Wall Street's "fear gauge" -- saw its biggest one-day jump since mid-May. However, many bank stocks bucked the trend, as traders welcomed encouraging consumer confidence stats, and digested comments from Fed Chair Janet Yellen, who opined that we're unlikely to see another financial crisis "in our lifetimes."
Continue reading for more on today's market, including:
- 2 oil stocks screaming "sell."
- Keep an eye on these ETFs in the third quarter.
- These biotech stocks could rule the summer months.
- Plus, Sprint rumors; red-hot Delphi stock; and how Bill Gates sent one drug stock soaring.
The Dow Jones Industrial Average (DJIA - 21,310.66) lost 99 points, or 0.5%, to end near a session low. Twenty-six of the 30 Dow stocks ended lower, with Verizon Communications bringing up the rear, dropping 2%. JPMorgan Chase stock was the top advancer, gaining 0.9%.
The S&P 500 Index (SPX - 2,419.38) shed 20 points, or 0.8%. The Nasdaq Composite (COMP - 6,146.62) lost 100 points, or 1.6%, for its lowest close since May 23.
The CBOE Volatility Index (VIX - 11.06) jumped 1.2 points, or 12%. It's the biggest one-day VIX gain since mid-May, and just the second time it has gained 10% or more in one day since mid-February.
5 Items on Our Radar Today:
- U.S. consumer confidence rebounded rather unexpectedly this month, with the Conference Board's index rising to 118.8 from 117.6 in May. The numbers beat analyst estimates, but the index measuring expectations for the next six months fell to its lowest point since January. (Bloomberg)
- A ransomware virus affected computers and systems all over the globe today, most notably one of Russia’s biggest oil company’s and several Ukrainian banks, as well as pharmaceutical giant Merck. Cybersecurity experts drew parallels to May's WannaCry cyberattack. (Reuters)
- Sprint chatter shook up telecom stocks.
- Why Delphi Automotive stock has room to run.
- How Bill Gates boosted this biotech stock.
Data courtesy of Trade-Alert
Commodities
Oil jumped today, marking a fourth straight gain, as traders bet on a drop in U.S. crude inventories. August-dated crude oil climbed 86 cents, or 2%, to settle at $44.24 per barrel.
Gold rose today, its fourth gain in five sessions, thanks to a weaker U.S. dollar and increased "safe haven" demand. However, the yellow metal backed down from its intraday highs after Fed Chair Janet Yellen's comments in the afternoon. August-dated gold futures added 50 cents to end at $1,246.90 per ounce.