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Dow Jones Industrial Average Loses Post-Fed Momentum

3 Oil Stocks With Upside Potential

Mar 16, 2017 at 4:26 PM
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The Dow Jones Industrial Average (DJIA) jumped out of the gate to extend yesterday's post-Fed rally, making its first trek north of the psychologically significant 21,000 level since March 3 -- then spent the rest of the session trading lower. In addition to unstable oil prices, stocks reacted to pressure from healthcare and utility shares. Additionally, traders parsed President Donald Trump's fiscal 2018 budget proposal, which put forth massive cuts throughout the federal government.

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

  • VIX options haven't been this popular since 2015.
  • 3 oil stocks with upside potential.
  • Options traders continue to second-guess Snap stock.
  • Plus, one gold bug banks a big post-Fed profit; Netflix options traders make a rare appearance; and the drug stock that jumped 37%.

The Dow Jones Industrial Average (DJIA - 20,934.55) closed down 15.6 points, or 0.07%. Nineteen of 30 Dow stocks settled in the red, paced by DuPont's 1.1% drop. IBM shares led the advancers, gaining 0.8%.

The S&P 500 Index (SPX - 2,381.38) gave back 3.9 points, or 0.2%, while the Nasdaq Composite (COMP - 5,900.76) eked out a last-minute fractional gain.

The CBOE Volatility Index (VIX - 11.21) tumbled 0.4 point, or 3.6%.

closing indexes summary march 16

NYSE and nasdaq stats march 16

5 Items on Our Radar Today

  1. McDonald's main Twitter account was hacked earlier, with the offender posting a derogatory tweet aimed at Trump. The tweet was up for roughly 20 minutes, and McDonald's has since issued a statement saying, "We deleted the tweet, secured our account and are now investigating this." (Los Angeles Times)
  2. U.S.-listed shares of high-end retailer Canada Goose Holdings hit an intraday high of $18.40 on their first day of trading -- nearly 44% above their IPO price of $12.79. The stock, which trades under the ticker GOOS on the New York Stock Exchange, fell to a session low of $15.85, before settling at $16.08. (MarketWatch)
  3. An initial post-Fed pop in gold prices yesterday helped this GDX options trader bank a roughly $1.1 million profit.
  4. Netflix stock saw a rare surge in options volume, after the shares hit a record high.
  5. This drug stock jumped 37% today -- and there's plenty of fuel from short sellers to keep the rally going.

corporate earnings march 16
Unusual options activity march 16
Data courtesy of Trade-Alert

Commodities

Crude oil seemed on track to notch a second straight win, after Bloomberg reported Saudi Arabia's energy minister said the Organization of the Petroleum Exporting Countries (OPEC) could extend output cuts past June, if needed. Nevertheless, oil prices swung lower at the close on continued concerns of a domestic supply glut, with crude for April delivery settling down 11 cents, or 0.2%, at $48.75 per barrel.

Gold prices surged as the U.S. dollar took a post-Fed tumble. By the close, April-dated gold futures were up $26.40, or 2.2%, at $1,227.10 an ounce -- their loftiest perch since March 2.

Get your daily dose of Dow futures, stock news, and more with Schaeffer's Opening View.

 

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