Gold Pops on Dow Jones Industrial Average Beatdown

2 Multi-Million-Dollar Gold Bets; Plus, The Crushing Citron Tweet

by Josh Selway

Published on Feb 8, 2016 at 4:27 PM

The Dow Jones Industrial Average (DJIA) was down more than 400 points at session lows, but more than halved its deficit in late-day trading. The sell-off was sparked in part by tumbling oil futures, which ended below $30 per barrel. While tech and so-called FANG stocks -- and the broader Nasdaq Composite (COMP) -- were among the hardest hit, virtually no corner of Wall Street went unscathed. As such, gold prices surged during the widespread bloodbath, as speculators sought safety. 


Continue reading for more on today's market, including
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The Dow Jones Industrial Average (DJIA - 16,027.05) was able to pare most of its intraday losses -- and stay north of 16,000 -- but still closed with a 177.9-point, or 1.1%, decline. Nine of the Dow's 30 components closed higher, with Chevron Corporation (NYSE:CVX) taking the lead with a 3.8% jump. On the other side of the scoreboard was Visa Inc (NYSE:V), which dropped 5.3%. 

The S&P 500 Index (SPX - 1,853.44) was hit with a 26.6-point, or 1.4%, setback. The Nasdaq Composite (COMP - 4,283.75) ended 79.4 points, or 1.8%, lower, after falling into territory not charted since October 2014. 

The CBOE Volatility Index (VIX - 26.00) ended 2.6 points, or 11.2%, higher, marking its loftiest close since Jan. 21. 

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5 Items on Our Radar Today:

  1. After closing its doors for most of today for food safety awareness, Chipotle Mexican Grill, Inc. (NYSE:CMG) is saying sick employees were the cause of a norovirus outbreak last year, while deeming tomatoes the reason for a salmonella outbreak, though the root of the company's E. coli scare remains unknown. What's more, the burrito chain announced it's setting aside $10 million to help local farmers maintain healthy food standards. (​CNBC ​and ​USA Today​) 

  2. Yelp Inc (NYSE:YELP) was having a bad day ahead its earnings release, and after an unusual blunder, things didn't get much better. Specifically, YELP closed with an 11.3% loss, after an alleged PR Newswire glitch released its earnings report ahead of schedule, and after the company said its CFO will step down. (CNBC

  3. Breaking down the recent option activity on automakers Tesla Motors Inc (NASDAQ:TSLA) and Ford Motor Company (NYSE:F)

  4. Analysts aren't hiding their optimism for these 3 gold names

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  Data courtesy of Trade-Alert

Commodities:

Oversupply worries continued to drive down oil futures, which closed lower for the third straight session. Crude set for March delivery ended with a $1.20, or 3.9%, loss at $29.69 per barrel. 

Gold futures -- often seen as a "safe haven" -- exploded amid the global market fears. April-dated gold surged $40.20, or 3.5%, to settle at $1,197.90 per ounce, its highest close since June, and its best day since December 2014. Earlier, spot gold topped $1,200.


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