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Dow Jones Industrial Average Drops 174; S&P Goes Red for 2016

The Massive Options Bet on Gold

Apr 7, 2016 at 4:29 PM
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The Dow Jones Industrial Average (DJIA) spent the entire day in the red, as tumbling crude futures sparked a risk-off attitude. Stocks also reacted as Japan's yen surged to an 18-month high against the U.S. dollar, calling into question the effectiveness of the Bank of Japan's recent interest-rate shocker. Elsewhere, the S&P 500 Index (SPX) fell back into negative year-to-date territory, while the Nasdaq Composite (COMP) underperformed its peers. Central banks will remain in focus after the close, with Fed Chair Janet Yellen scheduled to join several of her predecessors -- including Ben Bernanke -- at a presentation this evening in New York City.

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

The Dow Jones Industrial Average (DJIA - 17,541.96) was off more than 231 points at its session low, before settling with a 174-point, or 1%, loss. Twenty-seven of the Dow's 30 components closed lower, led by Goldman Sachs Group Inc's (NYSE:GS) 3.1% slide. United Technologies Corporation (NYSE:UTX) paced the advancers with its 0.5% gain.

The S&P 500 Index (SPX - 2,041.91) closed with a loss of 24.8 points, or 1.2%, while the Nasdaq Composite (COMP - 4,848.37) shed 72.3 points, or 1.5%.

The CBOE Volatility Index (VIX - 16.16) shot 2.1 points, or 14.7% higher, to notch its highest settlement since March 15.

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5 Items on Our Radar Today:

  1. Following the release of a damning report on its finances, Yahoo! Inc. (NASDAQ:YHOO) has found at least one suitor in Verizon Communications Inc. (NYSE:VZ). The telecommunications firm is reportedly set to put in a first-round offer for YHOO's Web business next week, while Alphabet Inc (NASDAQ:GOOGL) is rumored to be contemplating a bid for the firm's core business. (Bloomberg)

  2. Consumer credit rose by a seasonally adjusted rate of 5.8% -- or a $17.2 billion gain -- in February, according to the Federal Reserve. This was more than the $14 billion gain economists were expecting. (MarketWatch)

  3. Tesla Motors Inc (NASDAQ:TSLA) options volume ripped higher, as traders bet on more Model 3-inspired gains.

  4. Weekly options traders have set their sights on Netflix, Inc. (NASDAQ:NFLX) and Sunedison Inc (NYSE:INC).

  5. Analysts weighed in on these 3 gold stocks.

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Data courtesy of Trade-Alert

Commodities:

Crude futures ended lower today, as skepticism grew that an output freeze will not be agreed upon at an April 17 meeting of global oil producers. At the close, crude for May delivery was down 49 cents, or 1.3%, at $37.26 per barrel.

A cooling dollar sent gold futures soaring. June-dated gold tacked on $13.70, or 1.1%, to close at $1,237.50 per ounce.

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