Dow Jones Industrial Average Sinks With Banks; Nasdaq Hits New High

This Oversold Sector Could Be Ready to Pop

Feb 8, 2017 at 4:25 PM
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The Dow Jones Industrial Average (DJIA) spent the day in the red, with sinking financial stocks overshadowing an oil rebound. An uneventful earnings reaction from Walt Disney Co (NYSE:DIS) also failed to tip the scales in the bulls' favor. The Nasdaq Composite (COMP), however, notched a record closing high, while the S&P 500 Index (SPX) eked out a modest win of its own. Elsewhere, traders are looking ahead to tomorrow's weekly jobless claims report, as well as several Fed speeches and a full earnings docket.
 
Continue reading for more on today's market, including:
 

  • The oversold sector that could be ready to pop.
  • The biotech stock that skyrocketed to all-time highs.
  • airline stocks approaching critical levels. 
  • Plus, 3 massive gold bets, Trump's Nordstrom noise, and the contrarian case for Parker-Hannifin.

The Dow Jones Industrial Average (DJIA 20,054.34) lost 36 points for the day, or 0.2%. Nike Inc (NYSE:NKE) led the 15 Dow winners, gaining 2%, while the 14 Dow losers were paced by JPMorgan Chase & Co. (NYSE:JPM), which shed 0.9%. DIS finished flat for the day.

The S&P 500 Index (SPX - 2,294.67) finished higher, tacking on 1.6 points, or 0.1%. The Nasdaq Composite (COMP - 5,682.45) ended up 8.2 points, or 0.2%.  

The CBOE Volatility Index (VIX - 11.45) lifted 0.2 point, or 1.4%.

indexes closing summary Feb 8
NYSE and Nasdaq Stats Feb 8

5 Items on Our Radar Today

  1. Following a meeting with President Donald Trump, Intel Corporation (NASDAQ:INTC) CEO Brian Krzanich announced that the company will be building a new semiconductor factory in Arizona, a $7 billion investment that will bring up to 3,000 jobs to the state. The project, which will take an estimated three to four years to complete, will resume construction on a previous plant, which was never completed and now remains vacant. (CNBC)
  2. Panera Bread Co (NASDAQ:PNRA) shares touched a record high after earnings, with the restaurant chain citing investments in technologies such as ordering kiosks boosting sales to offset rising labor costs. (Reuters)
  3. The bullish contrarian case for Parker-Hannifin Corp (NYSE:PH).
  4. 3 massive options bets on gold stocks.
  5. The Trump tweet that temporarily shook Nordstrom, Inc. (NYSE:JWN).

Corporate earnings Feb 8
Unusual Options Activity Feb 8
Data courtesy of Trade-Alert

Commodities

March-dated crude futures rose 17 cents, or 0.3%, to close at $52.34 per barrel, in spite of domestic crude stockpiles surging by a bigger-than-expected 13.8 million barrels last week. It was the fifth weekly uptick in oil inventories -- and the second-biggest surge on record -- though gasoline supplies unexpectedly fell.

April-dated gold futures added $3.4, or 0.3%, to end the day at $1,239.50 per ounce, for a fifth straight day of gains. Political uncertainty in the U.S. and European Union helped boost the "safe haven" precious metal to three-month highs.

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