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The euro dropped to a nine-year low against the U.S. dollar
The Dow Jones Industrial Average (INDEXDJX:DJI) tanked today -- and at one point was down by as much as 357 points -- as crude futures continued to spiral lower. Also contributing to the risk-off attitude among traders is fear that Greece may exit the European Union (EU) -- especially if the Syriza party wins the upcoming presidential election -- which dragged the euro to a nine-year low against the U.S. dollar. The S&P 500 Index (SPX) and Nasdaq Composite (COMP) fared little better than their blue-chip counterpart; however, the CBOE Market Volatility Index (VIX) soared, landing at its highest perch in more than two weeks.
Continue reading for more on today's market, including:
- How options traders responded to Herbalife Ltd.'s (NYSE:HLF) analyst-induced meltdown.
- These GoPro Inc (NASDAQ:GPRO) call buyers are banking on an end-of-week rally, following the company's appearance at the Consumer Electronics Show (CES) tomorrow.
- A major pharmaceutical deal sent this stock soaring to a record high.
- Plus ... Stagnation in Germany, a look at December auto sales data, and a pair of e-commerce laggards capture bullish attention.
The Dow Jones Industrial Average (DJI - 17,501.65) spent the entire session in the red, and was off nearly 360 points at its intraday low. At the close, the blue-chip index was still sharply south of breakeven, down 331.3 points, or 1.9% -- its worst session in three months. Not surprisingly, 28 of the Dow's 30 components settled lower, paced by Caterpillar Inc.'s (NYSE:CAT) 5.3% deficit. The only outliers were Merck & Co., Inc. (NYSE:MRK) -- which gained 1.5% -- and The Coca-Cola Co (NYSE:KO), which ended flat.
Along similar lines, the S&P 500 Index (SPX - 2,020.58) and Nasdaq Composite (COMP - 4,652.57) opened in the red and never made it above breakeven. By the close, the SPX gave back 37.6 points, or 1.8%, while the COMP surrendered 74.2 points, or 1.6%.
The CBOE Volatility Index (VIX - 19.92) soared as U.S. equities sold off. The market's "fear gauge" ended with a 2.1-point, or 12%, gain, to reach its highest closing mark since Dec. 16.
5 Items on Our Radar Today:
- Germany's inflation rate slowed to 0.1% last month, marking the weakest reading since October 2009. Economists had expected a 0.2% rate. This development puts additional pressure on the European Central Bank (ECB) to intervene in order to prevent a "deflationary spiral," which could ripple through the eurozone. (Bloomberg)
- Falling fuel prices boosted U.S. auto sales last month, with General Motors Company (NYSE:GM) logging its best December since 2008 -- up 19% year-over-year. However, rival Ford Motor Company (NYSE:F) saw sales grow just 1%, falling short of estimates. (CNBC)
- Two e-commerce stocks that have been popular with call buyers, despite their technical struggles.
- This Dow component got clobbered as crude continued to swoon.
- Options traders employed two different strategies to bet against Tesla Motors Inc (NASDAQ:TSLA).
For a look at today's options movers and commodities activity, head to page 2.
Commodities:
Crude's slump continued today, with the February-dated contract settling at its lowest level since April 2009, amid ongoing oversupply concerns -- exacerbated by ConocoPhillips' (NYSE:COP) announcement that it has struck oil at its Norwegian North Sea project. In fact, liquid gold at one point dipped below the round-number $50 level, before settling at $50.04 per barrel -- down $2.65, or 5%.
Gold rebounded back above the $1,200 level as traders targeted safe-haven investments amid the energy sell-off, as well as the uncertain future of Greece in the EU. By day's end, the February-dated contract had added $17.80, or 1.5%, to settle at $1,204 per ounce.