Dow Jones Industrial Average Leaves Weekly Win Streak at 4

Snap Options Hit; Plus, Trouble for Small Caps?

Mar 10, 2017 at 4:22 PM
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The Dow Jones Industrial Average (DJIA) traded in a 112-point range to explore both sides of breakeven, but ultimately resolved to the upside. Stocks reacted to a strong jobs report, which all but guarantees the Fed will raise interest rates at next week's policy meeting, but a continued drop in oil prices dampened the collective risk-on mood around Wall Street. Despite today's win, the blue-chip barometer snapped its four-week win streak, while the S&P 500 Index (SPX) and Nasdaq Composite (COMP) logged their first weekly deficits since late January.

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

  • The signal suggesting the struggle for small caps is real.
  • How traders played Snap options on the first day of trading.
  • Facebook stock hit a record high on news of a major partnership.
  • Plus, a note on volatility; good news for gold bugs; and Chipotle stock's short-term "buy" sign.

The Dow Jones Industrial Average (DJIA 20,902.98) tacked on 44.8 points, or 0.2%, with General Electric's 2.1% advance leading the 23 advancing Dow stocks. Boeing shares paced the seven decliners with their 1.1% loss. Week-over-week, the Dow gave back 0.5%.

The S&P 500 Index (SPX - 2,372.60) added 7.7 points, or 0.3%, while the Nasdaq Composite (COMP - 5,861.73) gained 22.9 points, or 0.4%. After closing higher for six weeks in a row, the SPX and COMP settled this week down 0.5% and 0.2%, respectively.

The CBOE Volatility Index (VIX - 11.66) shed 0.6 point, or 5.2%. For the week, though, the market's "fear gauge" added 6.5% to close north of its 10-week moving average for the first time since Nov. 4.

closing indexes summary march 10
NYSE and nasdaq stats march 10

5 Items on Our Radar Today

  1. Scott Gottlieb is reportedly President Donald Trump's pick to head the Food and Drug Administration (FDA). Gottlieb formerly served as a deputy commissioner for the department during the George W. Bush administration, and is a partner at venture capital firm New Enterprise Associates. (Bloomberg)
  2. Spain-based energy giant Repsol said it found an oil field in Alaska that could house up to 1.2 billion barrels of liquid gold. This is the largest discovery in the U.S. in 20 years, and the oil could be ready for production as soon as 2021. (MarketWatch)
  3. The SPX has spent 33 days above its 20-day moving average -- a signal hinting at lower volatility ahead.
  4. This gold ETF's recent losing streak could translate into a sharp move higher in the near term.
  5. Shares of embattled Chipotle stock are trading near two historically bullish trendlines.

corporate earnings march 10

Unusual Options Activity march 10
Data courtesy of Trade-Alert

Commodities

Crude oil closed lower for a fifth straight session, after data showed the number of active oil rigs in the U.S. grew to 617 this week -- an eighth consecutive weekly rise, exacerbating oversupply concerns. April-dated crude futures gave back 79 cents, or 1.6%, to settle at $48.49 per barrel. For the week, oil prices declined 9%, their biggest weekly drop since early November.

Gold prices edged south ahead of next week's Fed meeting -- logging their longest daily losing streak since July 2015. Specifically, gold for April delivery was off $1.80, or 0.2%, at $1,201.40 an ounce. On a week-over-week basis, the malleable metal fell 2%.

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