COMP Takes Aim at 5K; Dow Jones Industrial Average Retreats

Crude oil plunged 5.5% -- and moved back below $50 -- amid supply concerns

Feb 26, 2015 at 4:21 PM
facebook twitter linkedin


The Dow Jones Industrial Average (INDEXDJX:DJI) retreated from record-high territory, amid a sharp drop in oil. In fact, two of the biggest laggards on the blue-chip barometer today were energy issues Chevron Corporation (NYSE:CVX) and Exxon Mobil Corporation (NYSE:XOM), which surrendered 1.4% and 1%, respectively. A mixed bag of economic data did little to boost investor sentiment, with the S&P 500 Index (SPX) heading south for a second straight day. However, not all was lost on the Street, with the Nasdaq Composite (COMP) coming within a chip-shot of taking out the highly watched 5,000 mark -- with help from component Avago Technologies Ltd (NASDAQ:AVGO) -- before settling just shy of its fresh 14-year high.

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

Outside of a brief stint north of breakeven near midday, the Dow Jones Industrial Average (DJI - 18,214.42) spent almost the entire session in the red, eventually settling with a 10.2-point, or 0.1%, loss. Of the Dow's 30 components, 13 closed lower, led by a 1.6% drop for Caterpillar Inc. (NYSE:CAT). McDonald's Corporation (NYSE:MCD) paced the 17 advancers with its 1.7% gain.

It was a similar set-up for the S&P 500 Index (SPX - 2,110.74), which edged higher shortly before lunchtime, only to close down 3.1 points, or 0.2%. The Nasdaq Composite (COMP - 4,987.89), meanwhile, outpaced its peers, settling up 20.8 points, or 0.4%, but not before notching a fresh 14-year peak of 4,989.11.

The CBOE Volatility Index (VIX - 13.91) added 0.1 point, or 0.5%, but closed south of its 200-day moving average for a fifth straight day.

CLOSING SUMMARY – INDICES

CLOSING SUMMARY – NYSE AND NASDAQ

5 Items on Our Radar Today:

  1. With many eyes watching, the Federal Communications Commission (FCC) approved net neutrality rules by a vote of 3-to-2. The historic measure will now classify the Internet as a utility, and allow broader regulation from the FCC. In response, FCC Chairman Tom Wheeler said, "The landmark open-Internet protections that we adopted today should reassure consumers, innovators and financial markets about the broadband future of our nation." (Bloomberg)
  2. The consumer price index notched its first year-over-year decline since 2009 in January -- calling into question whether this inflation data could cause the Federal Reserve to tap the brakes on a potential interest-rate hike. Elsewhere on the economic front, durable goods orders rose by more than expected, while weekly jobless claims jumped to their highest level in seven weeks. (Reuters; Bloomberg; MarketWatch)
  3. 3 notable names preparing to tell all in the earnings confessional.
  4. A $4 billion commitment from this blue chip had option bulls jumping on.
  5. Shares of this drugmaker jumped nearly 57% today after the company cleared a Food and Drug Administration (FDA) hurdle.
EARNINGS

For a look at today's options movers and commodities activity, head to page 2.

STOCKS – NOTABLE CALL ACTIVITY

STOCKS – NOTABLE PUT ACTIVITY

Commodities:

Crude oil resumed its recent downtrend today, as supply concerns -- and the U.S. dollar -- ramped up. By the close, April-dated crude was down $2.82, or 5.5%, at $48.17 per barrel -- its lowest settlement in a month.

Despite a surging dollar, gold notched a second consecutive win as Chinese buyers threw their proverbial hats back in the ring. At session's end, gold for April delivery was up $8.60, or 0.7%, at $1,210.10 per ounce.

 

If you are not making money with options, you aren’t buying options like this…

There is no options strategy that more perfectly approaches trading the fastest moving and most volatile stocks available in the marketplace than this one. In fact, there is no strategy that better utilizes put options for optimal returns and a real trading edge over other traders in the exact same market. New options traders fail out at an incredible rate without proper trade research, execution timing, and option picking. Capitalize on Schaeffer’s 100+ years of options trading excellence with the most coveted product launch in company history. Don't waste another second... join us right now before the next round of trades are released!

SCHAEFFER'S JULY STOCKS REPORT AD
 


 


 
Special Offers from Schaeffer's Trading Partners