Pre-Trump Jitters Send Dow Jones Industrial Average to Fifth Straight Loss

Why VIX Looks Set to Rise Under Trump

Jan 19, 2017 at 4:24 PM
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The Dow Jones Industrial Average (DJIA) extended its losing streak to a fifth day -- down more than 126 points at its intraday low -- and moved into the red on a year-to-date basis. The slump came despite a round of generally upbeat economic data and rising oil prices, even as domestic crude inventories saw a surprise build last week. Anxiety weighed on stocks ahead of tomorrow's U.S. presidential inauguration where Donald Trump will take the oath of office. And unlike recent sessions, neither the S&P 500 Index (SPX) nor the Nasdaq Composite (COMP) was able to buck the Dow's downbeat trend.
 
Continue reading for more on today's market, including:
 

The Dow Jones Industrial Average (DJIA - 19,732.40) lost 72.3 points, or 0.4%, for its lowest close since Dec. 8. Oil stock Exxon Mobil Corporation (NYSE:XOM) led 22 of 30 Dow stocks lower with its 1.8% decline, while healthcare concern UnitedHealth Group Inc (NYSE:UNH) paced the eight gainers, adding 0.6%.

The S&P 500 Index (SPX - 2,263.69) dropped 8.2 points, or 0.4%, while the Nasdaq Composite (COMP - 5,541.18) slipped 14.5 points, or 0.3%.

The CBOE Volatility Index (VIX - 12.78) tacked on 0.3 point, or 2.4%.

indexes closing summary jan 19
nyse and nasdaq stats jan 19

5 Items on Our Radar Today

  1. Electric carmaker Tesla Motors Inc (NASDAQ:TSLA) received a string of good news today, culminating in the conclusion of an investigation into whether a malfunction of its Autopilot system was responsible for a fatal crash that occurred in May. The National Highway Traffic Safety Administration said that Tesla's automatic emergency braking feature showed no signs of "any defects in the design or performance." (MarketWatch)
  2. According to U.S. officials, North Korea may be preparing to test-launch a new missile. Media in South Korea has reported possible components of an upgraded intercontinental ballistic missile have been spotted in transport, but officials reported that more details -- including the timing of such a test -- remain uncertain. (Reuters)
  3. 2 steel stocks that got rocked on a sector downgrade.
  4. Why International Business Machines Corp. (NYSE:IBM) bears have been bracing for another post-earnings plummet.
  5. Breaking down a big bearish options trade on the SPDR S&P Metals and Mining ETF (XME).

quarterly earnings jan 19
unusual options activity jan 19
Data courtesy of Trade-Alert

Commodities:

Crude oil gained ground today, with the February-dated contract -- which expires tomorrow -- adding 29 cents, or 0.6%, to $51.37 per barrel. Although the weekly crude inventories report showed an unexpected uptick in domestic stockpiles, the International Energy Agency confirmed crude production among Organization of the Petroleum Exporting Countries (OPEC) declined last month.

Gold prices fell for a second straight day, amid a round of strong economic data and a rising U.S. dollar. By the close, February-dated gold gave up $10.60, or 0.9%, to settle at $1,201.50 an ounce.

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