Dow Jones Industrial Average Takes a Breather; Caterpillar, Snap In Spotlight

Analyst: Snap 'Significantly Overvalued'

Mar 2, 2017 at 4:20 PM
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The Dow Jones Industrial Average (DJIA) ended the day down triple digits, as stocks took a breather following a record-setting session. Financial stocks were especially hard-hit, despite more talk of a March rate hike, and Caterpillar Inc. (NYSE:CAT) led the blue-chip laggards after a federal raid at its Illinois facilities. The unquestioned star of the session was Snapchat parent Snap Inc (NYSE:SNAP), which surged 44% in its first day of public trading. Elsewhere, a stronger dollar took its toll on both crude oil and gold prices.

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

  • Analyst: SNAP shares already "significantly overvalued."
  • 2 under-the-radar stocks for bargain-hunting bulls.
  • The $1.8 million bearish bet against the healthcare sector.
  • Plus... 2 automakers flashing "buy," DDD's rebound potential, and 3 stumbling healthcare stocks.

The Dow Jones Industrial Average (DJIA 21,002.97) slumped 112.6 points, or 0.5%. Just nine Dow stocks advanced, with the biggest gain courtesy of Home Depot Inc (NYSE:HD), at 0.9%. Meanwhile, General Electric Company (NYSE:GE) was flat, while 20 blue chips fell -- including leading laggard CAT, down 4.3%.

The S&P 500 Index (SPX - 2,381.92) dipped 14 points, or 0.6%, after spending the whole session in the red. The Nasdaq Composite (COMP - 5,861.22) was down wire-to-wire, too, eventually surrendering 42.8 points, or 0.7%.

The CBOE Volatility Index (VIX - 11.81) shed 0.7 point, or 5.8%, for its lowest settlement in four trading days.

closing indexes summary march 2
NYSE and Nasdaq stats march 2

5 Items on Our Radar Today

  1. Caterpillar's home office was raided by the U.S. Attorney's Office, in cooperation with three other federal agencies. Details of the investigation have yet to be released, but the news dropped the blue-chip stock by more than 4%. (Forbes)
  2. Electronics retailer hhgregg announced plans to shutter 88 stores. CEO Robert Riesbeck attributed the closures to underperformance. The chain is reportedly planning to file for bankruptcy as early as this month. (Chicago Tribune)
  3. 2 auto stocks flashing a "buy" signal.
  4. Why 3D Systems Corporation (NYSE:DDD) could bounce back.
  5. 3 healthcare stocks that felt the pain.

corporate earnings march 2

Unusual Options Activity March 2
Data courtesy of Trade-Alert

Commodities

Oil prices fell after Russia's February crude output showed no change from January, hinting at weak compliance with the global agreement to curb production. By the close, April-dated crude futures were down $1.22, or 2.3%, at $52.61 per barrel.

Gold suffered its worst single-day defeat of 2017, pressured by a strengthening dollar amid mounting March rate-hike speculation. April-dated gold dropped $17.10, or 1.4%, to land at $1,232.90 per ounce.

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