Caterpillar, Oil Stocks Drag Dow Jones Industrial Average Lower

Buy Calls On These 4 Metals Stocks

Mar 8, 2017 at 4:24 PM
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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.

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

  • Option bulls may want to buy the dip on these 2 gold stocks.
  • 2 steel stocks set for seasonal strength.
  • The high-profile investor who boosted SNAP stock.
  • Plus, earnings crush retailers; Mobileye stock is set to move; and 2 biotech trade ideas.

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.

closing indexes summary march 8
NYSE and Nasdaq stats march 8

5 Items on Our Radar Today

  1. According to The Wall Street Journal, Samsung Electronics plans to expand production in the U.S., moving business out of Mexico amid concerns over increased tariffs on imports. The shift could create up to 500 jobs domestically. (Bloomberg)
  2. Insiders confirmed that the CIA documents published yesterday on WikiLeaks were authentic, and added U.S. officials have been aware of the breach since late 2016. White House spokesman Sean Spicer said President Donald Trump is "extremely concerned" about the matter, and promised the administration will "go after people who leak classified information." (Reuters)
  3. A couple of retail stocks sunk by earnings.
  4. Mobileye options activity suggests traders are looking for a huge move.
  5. Two bargain biotech trade ideas.

corporate earnings march 8
Unusual options activity march 8
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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