Dow Jones Industrial Average Taps Brakes as Rate Hike Looks Likely

3 Dow Stocks Flashing a 'Buy' Signal

Mar 6, 2017 at 4:20 PM
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The Dow Jones Industrial Average (DJIA) cooled off amid geopolitical uncertainty, rising March rate-hike expectations, and revisions to President Donald Trump's travel ban executive order. The headwinds pretty much hit stocks across the board, with 10 of the 11 primary S&P 500 Index (SPX) sectors finishing lower. The market failed to get a boost from a better-than-expected 1.2% lift in January factory orders, with all eyes focused on Friday's jobs report -- which could ultimately determine whether the Fed raises interest rates next week.

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

  • 3 Dow stocks that could be flashing a "buy" signal.
  • These options traders expect yet another retail stock to sink on earnings.
  • Analyst: Netflix, Inc. (NASDAQ:NFLX) headed for record highs amid "misplaced" fears.
  • Plus... Biotechs break out, Snap's value slammed, and a bearish gold signal.

The Dow Jones Industrial Average (DJIA 20,954.34) gave back 51.4 points, or 0.2%, with just nine of 30 components advancing. The top Dow stock was Caterpillar Inc. (NYSE:CAT), which added 0.6%. Of the 21 losers, Travelers Companies Inc (NYSE:TRV) performed the poorest, diving 1.5%.

The S&P 500 Index (SPX - 2,375.31) slid 7.8 points, or 0.3%, while the Nasdaq Composite (COMP - 5,849.18) surrendered 21.6 points, or 0.4%. 

The CBOE Volatility Index (VIX - 11.24) tacked on 0.3 points, or 2.6%, clawing its way back atop the 11 level.

Closing indexes summary march 6
NYSe and Nasdaq stats March 6

5 Items on Our Radar Today

  1. Amid the immigration ban drama, foreign travel to the U.S. is slowing. On a year-over-year basis, bookings are down 0.4% for the next three months, according to travel analysis firm ForwardKeys. (Reuters)
  2. Media mogul Jay Z announced the formation of a new venture capital firm called Arrive. The company will pitch itself as an expert in brand building, especially to consumer-facing startups. (TechCrunch)
  3. Why these 3 biotech stocks broke out.
  4. Is Snap Inc (NYSE:SNAP) "ridiculously valued"? Barron's thinks so.
  5. The gold ETF setting off alarm bells.

unusual options volume march 6
Data courtesy of Trade-Alert

Commodities

Oil went from black to red after the International Energy Agency (IEA) warned about potential increases in U.S. shale production and slowing economic growth in China. However, the IEA's "Oil 2017" report also predicted a potential supply shortage in three years. April-dated crude futures lost 13 cents, or 0.2%, settling at $53.20 per barrel.

Gold ended just south of breakeven, as traders weighed higher March rate-hike odds against geopolitical uncertainty. By day's end, gold for April delivery was down just $1 at $1,225.50 per ounce.

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