Dow Jones Industrial Average Breaks 17K as Oil Hits New Lows

Time to Fade the VIX Pop?

by Josh Selway

Published on Jan 6, 2016 at 4:28 PM

The Dow Jones Industrial Average (DJIA) got buried today, dropping 252 points as oil futures plummeted to fresh 11-year lows. Investors were also put off by reports North Korea tested a hydrogen bomb, while others showed concern over the latest Fed meeting minutes, as some central bank members seemed unsure about the group's decision to raise rates. As such, the blue-chip index conceded the 17,000 level, while the S&P 500 Index (SPX) finished below 2,000, both for the first time since mid-October. 

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

The Dow Jones Industrial Average (DJIA - 16,906.51) fell by 252.2 points, or 1.5%, closing below 17,000 for the first time since Oct. 14. Only Wal-Mart Stores, Inc. (NYSE:WMT) closed the day higher out of all the Dow's components, adding 1%. The biggest loss went to Chevron Corporation (NYSE:CVX), which fell 4%. 

The S&P 500 Index (SPX - 1,990.26) slid 26.5 points, or 1.3%, ending the day below 2,000 for the first time since Oct. 14. The Nasdaq Composite (COMP - 4,835.76) ended the day 55.7 points, or 1.1%, lower. 

The CBOE Volatility Index (VIX - 20.59) added 1.3 points, or 6.5%. 



5 Items on Our Radar Today:

  1. Despite North Korea's claims that it successfully tested a hydrogen bomb, the U.S. government isn't so sure. The White House suggested it was possible North Korea may not have set off a hydrogen bomb, as many still doubt the country's atomic capabilities. (​Reuters) 

  2. The minutes from the latest Federal Open Market Committee (FOMC) meeting revealed some members may have been slightly uncomfortable with the decision to raise rates. Specifically, some said the decision was a "close call" due to concerns on inflation. (Reuters via CNBC)

  3. The solar company cutting hundreds of jobs

  4. A word of warning to Chipotle Mexican Grill, Inc. (NYSE:CMG) option traders.

  5. What had Fitbit Inc (NYSE:FIT) moving lower for the second straight day?


Data courtesy of Trade-Alert


Crude prices fell precipitously today, hitting an 11-year low, as a big spike in gasoline inventories overshadowed a weekly drop in crude supplies. At the close, crude dated for February was off by $2, or 5.6%, at $33.97 per barrel. 

On the other hand, gold futures got a lift amid the tense geopolitical climate, as traders sought "safe havens." Gold for February delivery added $13.50, or 1.3%, ending at $1,091.90 per ounce -- the metal's fourth straight up day and its best finish in almost two months. 

A Schaeffer's exclusive!

The Expert's Guide

Access your FREE trading earning announcements before it's too late!



NEW! Explore Schaeffer’s Partners' deals and get connected to top online brokerages with deals tailored exclusively for our readers.  Get answers to your questions regarding transfer fees, commission rates, programs and available discounts related to online trading services.

MORE | MARKETstories

The Nevada Discovery That Could Jeopardize Chinese Dominance
Click to continue to advertiser's site.
UNH Stock Pops on Accelerated Payment Promise
Analysts are very bullish on UnitedHealth stock
Extra Space Storage Stock Wavers After Downgrade
Raymond James downgraded to "underperform" from "market perform"
The Top Lithium Play of 2020
Click to continue to advertiser's site.