Dow Jones Industrial Average Drops 122; VIX Jumps Most Since Election

5 Levels to Watch on This Energy Stock

Jan 30, 2017 at 4:26 PM
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The Dow Jones Industrial Average (DJIA) dropped below the 20,000 level just after the open -- and failed to make up much ground as the trading day progressed. While lower crude oil prices weighed on energy stocks, anxiety surrounding President Donald Trump's immigration ban put pressure on the broader markets. Caution also emerged as the Federal Open Market Committee (FOMC) prepares to begin its first two-day policy-setting meeting of the year tomorrow. While the Dow plunged triple digits, the CBOE Volatility Index (VIX) -- also known as the market's "fear gauge" -- jumped, notching its biggest one-day percentage gain since Nov. 3.
 
Continue reading for more on today's market, including:
 

  • 5 technical levels to watch on this energy stock after Trump's Keystone pipeline executive order.
  • 2 big-time blue chips set to report earnings tomorrow.
  • The potential M&A hurdle that dropped Rite Aid Corporation (NYSE:RAD).
  • Plus, 2 stocks near new highs, behind a winning Newmont Mining trade, and this chipmaker's skeptics have scattered.

The Dow Jones Industrial Average (DJIA - 19,971.13) slid 122.7 points, or 0.6%, for its largest one-day drop since Oct. 11. Caterpillar Inc. (NYSE:CAT) led 24 of the 30 Dow stocks lower on a 2.2% drop, while Walt Disney Co (NYSE:DIS) tracked the six gainers, adding 1.5%.

The S&P 500 Index (SPX - 2,280.90) lost 13.8 points, or 0.6%, for its worst session in over a month. The Nasdaq Composite (COMP - 5,613.71) shed 47.1 points, or 0.8%, but managed to keep its hold on the 5,600 level.

The CBOE Volatility Index (VIX - 11.88) tacked on 1.3 points, or 12.3%, for its largest single-day jump in nearly three months.

indexes closing summary jan 30
nyse and nasdaq stats jan 30

5 Items on Our Radar Today

  1. Sources are reporting that a long-awaited Snap Inc. IPO could soon become a reality, with the company rumored to be filing for its initial public offering (IPO) as soon as this week, according to Recode. The Snapchat parent is expected to choose the New York Stock Exchange for its IPO, and could see its value clock in  around $25 billion. (CNBC)
  2. Canadian authorities have reported that a university student who shot at least 23 people at a Quebec City mosque acted alone, calling it a "lone wolf situation." Prime Minister Justin Trudeau called the shooting "a terrorist attack." (Reuters)
  3. Options traders have been busy taking sides on booming these 2 stocks near new highs.
  4. Breaking down a 170% profit on our Newmont Mining Corp (NYSE:NEM) options trade.
  5. Skeptics have taken a step back ahead of this chipmaker's earnings.

quarterly earnings jan 30
unusual options activity jan 30
Data courtesy of Trade-Alert

Commodities

Oil prices settled lower for a second straight session, on signs of increased domestic production. Crude oil for March delivery dropped 54 cents, or 1%, to close at $52.63 per barrel.

A rough session for stocks was a boon for gold, as investors flocked to the safe-haven asset ahead of tomorrow's FOMC meeting kick-off. April-date gold futures -- now the most active contract -- tacked on $4.90, or 0.4%, to finish the day at $1,196 an ounce.

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