Caterpillar, Oil Stocks Drag Dow Jones Industrial Average Lower

Buy Calls On These 4 Metals Stocks

Mar 8, 2017 at 4:24 PM

The Dow Jones Industrial Average (DJIA) and S&P 500 Index (SPX) sank for the third straight day, with energy stocks helping lead the way lower on a dismal day for oil. Specifically, crude futures took their largest percentage loss in 13 months, after a ninth straight build in domestic oil inventories. Meanwhile, traders digested extremely strong private payrolls data ahead of Friday's key jobs report, suggesting a Fed rate hike is increasingly likely.

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The Dow Jones Industrial Average (DJIA - 20,855.73) fell 69 points, or 0.3%, as 21 of 30 blue-chip stocks ended in negative territory. Caterpillar Inc. (NYSE:CAT) had the worst day, diving 2.8% amid tax fraud allegations. The Coca-Cola Co (NYSE:KO) closed flat, while the eight gainers were paced by Microsoft Corporation (NASDAQ:MSFT), up 0.9%.

The S&P 500 Index (SPX - 2,362.98) gave up 5.4 points, or 0.2%. The Nasdaq Composite (COMP - 5,837.55) bucked the bearish trend, adding 3.6 points, or 0.06%.

The CBOE Volatility Index (VIX - 11.86) advanced 0.4 point, or 3.6%, and closed above its 10-day moving average for the first time in a week.

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Data courtesy of Trade-Alert

Commodities

Crude oil plunged to a nearly three-month low, after the Energy Information Administration (EIA) revealed a ninth straight weekly build in U.S. inventories. Specifically, oil stockpiles increased 8.2 million barrels, quadrupling the expected 2 million. By day's end, April-dated crude futures were down $2.86, or 5.4%, at $50.28 per barrel.

Gold futures gave up ground for the seventh consecutive session, pressured by the strong ADP employment report -- which further increased the odds of a March rate hike. Specifically, April-dated gold dropped $7.50, or 0.6%, to close at $1,208.60 per ounce.

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