Dreams of 20K Dashed as Dow Jones Industrial Average Drops

25 Stocks That Could Take Off in January

Dec 28, 2016 at 4:23 PM
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The Dow Jones Industrial Average (DJIA) broke out of its tight trading range today, making a sharp move to the downside and dashing traders' hopes of Dow 20,000 in the process. Stocks across the board suffered heavy losses, with the Dow, Nasdaq Composite (COMP), and S&P 500 Index (SPX) all closing near session lows. With little in the way of economic data, an unexpected drop in pending home sales weighed on investor sentiment, putting the Dow's weekly win streak in jeopardy.
 
Continue reading for more on today's market, including:
 

The Dow Jones Industrial Average (DJIA - 19,833.68) fell 111.4 points, or 0.6%, to close below its 10-day moving average for the first time since Nov. 4. Travelers Companies Inc (NYSE:TRV) was the only Dow component to close higher, managing a 0.1% gain. Of the 29 losers, the biggest loss came from Caterpillar Inc. (NYSE:CAT), which fell 1.5%. 

The S&P 500 Index (SPX - 2,249.92) shed 19 points, or 0.8%, and the Nasdaq Composite (COMP - 5,438.56) gave back 48.9 points, or 0.9%. 

The CBOE Volatility Index (VIX - 12.95) ended the day up 1 point, or 8%, for its highest close in two weeks. 

Indexes summary December 28
NYSE and Nasdaq December 28

5 Items on Our Radar Today

  1. President-elect Donald Trump is expected to make an economic announcement sometime this afternoon. A Trump spokesman said it "should be very positive for American workers." (Reuters)
  2. In other political news, President Obama is planning to announce a number of sanctions against Russia in the coming days. The sanctions come in response to Russia's interference in November's U.S. presidential election. (CNN)
  3. One option bull placed an ambitious bet on this gold stock. 
  4. The M&A rumors that helped Coach Inc (NYSE:COH) shake off a bearish note
  5. 2 red-hot steel stocks with room to run

unusual options activity December 28
Data courtesy of Trade-Alert

Commodities:

Crude oil futures managed a fourth straight winning session today. February-dated crude futures added 16 cents, or 0.3%, to close at $54.06 per barrel -- the highest close since early July. 

Gold futures again ignored a strengthening dollar, gaining for a third straight day. Gold dated for February delivery rose $2, or 0.2%, to end at $1,141 per ounce. 

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