Dow Jones Industrial Average Gives Up 208 as Oil Resumes Slide

Why Are Apple Traders Preparing for the Worst?

Jan 25, 2016 at 4:24 PM

CAT
MCD
SPX
DJIA
COMP

The Dow Jones Industrial Average (DJIA) suffered a triple digit loss, despite a valiant midday effort to claw higher. Oil was once again the primary driver, with March crude pulling back to test the $30-per-barrel level. Upbeat earnings from McDonald's Company (NYSE:MCD) were overshadowed by a drop in energy names, as well as Dow component Caterpillar Inc.'s (NYSE:CAT) downgrade-induced decline.

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

How Apple Inc. (NASDAQ:AAPL) traders are preparing for the worst.
Why did option volume explode on Amira Nature Foods Ltd (NYSE:ANFI)?
The executive shake-up that spooked Twitter Inc (NYSE:TWTR) investors.
Plus ... SCOTUS lights up energy, Fitbit falls hard, and Coach attracts pre-earnings traders.

The Dow Jones Industrial Average (DJIA - 15,885.22) slipped 208.3 points, or 1.3%, once again giving up the 16,000 level. Wal-Mart Stores, Inc. (NYSE:WMT) led just three blue chips higher, with a gain of 1.2%, while CAT paced the laggards, giving up 5% on a bearish note from Goldman Sachs.

The S&P 500 Index (SPX - 1,877.08) also lost a critical round-number foothold at the 1,900 level, falling 29.8 points, or 1.6%. The Nasdaq Composite (COMP - 4,518.49) shed 72.7 points, or 1.6%, as tech stocks dropped.

The CBOE Volatility Index (VIX - 24.15) added 1.8 points, or 8.1%, for the day.

160125recap1

160125recap2

5 Items on Our Radar Today:

Former New York Mayor Michael Bloomberg is considering an independent run for the presidency, according to sources familiar with the matter. Bloomberg has been privately considering entering the race for some time, and has already commissioned a poll to estimate how he would fare against current frontrunners. (The New York Times via CNBC)
In a 6-to-2 vote, the U.S. Supreme Court upheld a federal rule allowing electricity companies to make payments to large users for limiting consumption during peak hours. The rule is meant to reduce overall energy usage and encourage efficiency, as well as the integration of more renewable energy sources. (Reuters via CNBC)
This solar energy interest just got a high-profile board member.
A bearish analyst note had Fitbit Inc (NYSE:FIT) falling hard again.
Why traders are paying a hefty premium for Coach Inc (NYSE:COH) options.

160125recap3

160125recap4
Data courtesy of Trade-Alert

Commodities:

News that Iraq's crude oil output hit record highs in December brought attention back to the global oversupply issue, driving oil lower and erasing some of last week's late gains. Crude oil for March delivery ended the day down $1.85, or 5.8%, at $30.34 a barrel.

Weakness in the dollar and a flight to safety boosted gold. February gold futures gained $9.00, or 0.8% to close at $1,105.30 an ounce.

Follow @Schaeffers

Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released!