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Energy Drops Dow Jones Industrial Average Ahead of Fed

25 Stocks for Pre-Earnings Options Buyers

Jul 25, 2016 at 4:24 PM
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The Dow Jones Industrial Average (DJIA) skidded lower throughout the day, as dropping crude oil prices weighed heavily on energy stocks, and news of Verizon Communications Inc.'s (NYSE:VZ) $4.8 billion purchase of Yahoo! Inc.'s (NASDAQ:YHOO) core business failed to lift sentiment. Additionally, caution seemed to be setting in among traders, with numerous Dow components and tech titans preparing to step into the earnings confessional and a pair of highly watched central bank meetings on the radar. In the U.S., the Federal Open Market Committee's (FOMC) two-day policy-setting meeting is set to kick off tomorrow, while the Bank of Japan (BoJ) will begin its own two-day meeting on Thursday.


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

The Dow Jones Industrial Average (DJIA - 18,493.06) dropped 77.8 points, or 0.4%, with oil stock Chevron Corporation (NYSE:CVX) leading 18 of the Dow components lower on a 2.5% loss. Nike Inc (NYSE:NKE) paced the gainers, adding 0.7%.

The S&P 500 Index (SPX - 2,168.48) gave up 6.6 points, or 0.3%, for the day, while the tech-heavy Nasdaq Composite (COMP - 5,097.63) fared slightly better, shedding just 2.5 points, or 0.1%.

The CBOE Volatility Index (VIX - 12.87) climbed 0.9 point, or 7.1%. 

Indexes closing summary July 25


NYSE and NASDAQ stats July 25

5 Items on Our Radar Today: 

  1. Microblogging specialist Twitter Inc (NYSE:TWTR) is increasing its focus on video content, confirming deals with both the NHL and MLB to stream live sporting events. This follows a string of similar partnerships with the NFL and Pac-12 Conference. (Bloomberg)
  2. The Democratic National Convention kicked off in Philadelphia today, largely overshadowed by news of an email leak that led to the resignation of Democratic National Committee (DNC) Chairwoman Debbie Wasserman Schultz. The FBI is investigating the leak, with some speculating Russian hackers could be responsible. (Reuters)
  3. The semiconductor stock heating up the options pits on renewed M&A hopes. 
  4. Is Elon Musk's dream deal close to becoming a reality?
  5. The regulatory slap that sent Ocular Therapeutix Inc (NASDAQ:OCUL) stock reeling -- and call volume flying.


Quarterly earnings July 25



Unusual options activity July 25

Data courtesy of
Trade-Alert

Commodities:

Continued concerns about global oversupply sent crude oil to its lowest close in three months. The September contract for crude shed $1.06, or 2.4%, to finish at $43.13 per barrel.

August-dated gold gave up $3.90, or 0.3%, to settle at $1,319.50 per ounce. Low expectations for a Fed policy shift at this week's central bank meeting dulled the malleable metal's appeal.

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