Retail Blues Send Dow Jones Industrial Average to 185-Point Loss

The Dow Jones Industrial Average (DJIA) fell steadily throughout the day, ending down triple digits. Oil prices dropped as the dollar strengthened, and the ongoing parade of dreary retailer earnings overshadowed a jump in April retail sales. As energy and consumer stocks tanked, the Dow and S&P 500 Index (SPX) fell beneath their 50-day moving averages for the first time since February.

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

• The despondency signal that called the March 2009 bottom. 
• How options bulls are betting on a retail comeback. 
• Did Magic Johnson spook this options trader? 
• Plus ... McDonald's fresh idea, the retail outlier, and who's "fully committed" to Mobileye? 
  

The Dow Jones Industrial Average (DJIA - 17,535.32) took a 185.2-point, or 1.1%, dive today, for its lowest close since March 24. Twenty-six of the 30 Dow components finished lower, with Wal-Mart Stores, Inc. (NYSE:WMT) posting the biggest loss at 2.9%. Intel Corporation (NASDAQ:INTC) gained 0.5% to lead the winners, while Pfizer Inc. (NYSE:PFE) closed flat. The Dow dropped 1.2% on the week. 

The S&P 500 Index (SPX - 2,046.61) posted a loss of 17.5 points, or 0.9%, bringing its weekly decline to 0.5%. With its 19.7-point, or 0.4%, loss today, the Nasdaq Composite (COMP - 4,717.68) ended the week 1.4% lower. 

The CBOE Volatility Index (VIX - 15.04) finished up 0.6 point, or 4.4%, to put its weekly gain at 2.2%. 

5 Items on Our Radar Today:

1. The 1.3% jump in April retail sales was the largest increase in a year. The increase was attributed to strong performances from auto dealers, gas stations, and online retailers. Analysts were expecting just a 1% increase. (MarketWatch)
2. McDonald's Corporation (NYSE:MCD) is testing the use of fresh beef at some of its restaurants. The company has historically used burgers that were "flash frozen." (CNN)
3. The retail stock that managed a comeback. 
4. How options traders responded to Monsanto Company's (NYSE:MON) M&A chatter.
5. The two "fully committed" deals lifting Mobileye NV (NYSE:MBLY).

Data courtesy of Trade-Alert

Commodities:

Oil prices struggled amid a strengthening dollar today, with the June-dated crude contract dropping 49 cents, or 1.1%, to $46.21 per barrel. For the week, however, oil picked up 3.5%. 

Gold futures, on the other hand, gained slightly. Gold dated for June delivery closed $1.50, or 0.1%, higher at $1,272.70 per ounce. This still left gold 1.7% lower for the week, though. 


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