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Sub-$30 Oil Sinks Dow Jones Industrial Average

3 Stocks Set to Slide in February

Feb 2, 2016 at 4:24 PM
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The Dow Jones Industrial Average (DJIA) finished with a triple-digit loss, marking a second consecutive day in the red. The biggest driver today was sinking oil prices, as March crude futures fell to their lowest close in over a week. Disappointing earnings from oil majors also weighed on sentiment, while Kansas City Fed President Esther George further spooked traders by stating the Fed should continue to hike interest rates.


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

  • 3 stocks set to slide in February.
  • How options traders bet on this oil ETF as crude futures tanked.
  • The Ferrari NV (NYSE:RACE) news that set call volume on fire.
  • Plus ... how low gas prices impacted auto sales, a brutal brokerage note for Twitter, and what sparked a bear run on one drug stock.

The Dow Jones Industrial Average (DJIA - 16,153.54) fell 295.6 points, or 1.8%, as 29 of its 30 components closed lower. Goldman Sachs Group Inc (NYSE:GS) led the laggards, shedding 5%, while Du Pont (NYSE:DD) was the lone gainer, adding 5.4%. 

The S&P 500 Index (SPX - 1,903.03) gave up 36.4 points, or 1.9% for the day, while the Nasdaq Composite (COMP - 4,516.95) fell 103.4 points, or 2.2%.

The CBOE Volatility Index (VIX - 21.98) added 2 points, or 10%, by the close.

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5 Items on Our Radar Today:

  1. January U.S. auto sales rose from December, beating analysts' expectations. Low gas prices appear to be impacting buyers' choices; the report showed stronger growth in truck sales, while car sales only managed a slight climb. (MarketWatch)

  2. Monday's Iowa caucus produced tighter-than-expected results in both parties' races for president. Ted Cruz took the top GOP spot, with Donald Trump and Marco Rubio just behind, while Hillary Clinton just narrowly edged out Bernie Sanders for the Democrats. (NPR)

  3. Pricing revelations sparked bearish betting on Valeant Pharmaceuticals Intl Inc (NYSE:VRX).

  4. One analyst's warning sent Twitter Inc (NYSE:TWTR) spiraling lower.

  5. Options are getting expensive on one cybersecurity stock.

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  Data courtesy of Trade-Alert

Commodities:

Crude oil fell hard for a second straight day amid dimmer hopes for production cuts from major producers. March-dated crude fell $1.74, or 5.5%, to settle at $29.88 a barrel, while gasoline futures plummeted to just fractions of a point above $1 -- their lowest level since December 2008.

Despite ongoing losses for stocks and oil, traders played it safe after gold's three-month high on Monday. Gold futures for April delivery closed at $1,127.20 -- a loss of 80 cents, or 0.1%.

 

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