Goldman Sachs Sends Dow Jones Industrial Average to Triple-Digit Loss

Analyst: Buy This Blue Chip Ahead of Earnings

Apr 18, 2017 at 4:27 PM
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The Dow Jones Industrial Average (DJIA) fell triple digits on a negative earnings reaction for big bank Goldman Sachs. Traders also kept a cautious eye trained overseas, too, as Vice President Mike Pence continued his tour of Asia, France geared up for weekend voting, and U.K. Prime Minister Theresa May called a snap election to try and strengthen public support for her Brexit plan. Falling oil prices only added additional pressure to stocks, as did disappointing readings on factory output and housing starts. Even with the stock market sell-off, though, the CBOE Volatility Index (VIX) retreated -- one day after flashing this rare VIX signal.

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

  • Analyst: Buy this blue chip ahead of earnings.
  • The $1.8 million options hedge on the French election.
  • eBay options traders brace for a post-earnings volatility crush.
  • Plus, Kate Spade shocks the Street; a closer look at silver; and another new low for Valeant Pharmaceuticals.

The Dow Jones Industrial Average (DJIA - 20,523.28) spent the entire session in negative territory, eventually closing with a 113.6-point, or 0.6%, loss. Goldman Sachs paced the 17 Dow decliners with its 4.7% drop, while Coca-Cola led the 13 advancers with its 1% gain. 

The S&P 500 Index (SPX - 2,342.19) gave back 6.8 points, or 0.3%. The Nasdaq Composite (COMP - 5,849.47) shed 7.3 points, or 0.1%.

The CBOE Volatility Index (VIX - 14.42) settled down 0.2 point, or 1.6%.

closing indexes summary april 18
nyse and nasdaq stats april 18

5 Items on Our Radar Today

  1. Ahead of the 10th anniversary of the iPhone, Apple said it is planning a complete overhaul to the smartphone, which will include the newest iteration set for launch this fall. The latest iPhone will include a redesign with a new screen and curved glass, as well as significant camera upgrades. (Bloomberg)
  2. At Facebook's annual developers conference, CEO Mark Zuckerberg unveiled plans to build the "first mainstream augmented reality platform out of the camera," as part of the social network's broader "Act 2." This includes the ability to scroll through "face masks," and appears to be taking a swipe at rival Snap. (CNBC)
  3. Options traders blasted Kate Spade stock, which spiraled after the retailer's unexpected release of its earnings report.
  4. The iShares Silver Trust (SLV) is trading atop familiar support, despite entering a historically bearish time of year.
  5. Valeant Pharmaceuticals stock tagged a new eight-year low today, as the embattled drugmaker got hit with a fresh bearish brokerage note.

corporate earnings april 18

unusual options activity april 18
Data courtesy of Trade-Alert

Commodities

Oil prices closed lower, as concerns over U.S. crude supply overshadowed reports of declining production in Russia and Saudi Arabia. At the close, crude for May delivery was down 24 cents, or 0.5%, at $52.41 per barrel.

A cooling U.S. dollar and an appetite for "safe havens" sent gold to a fifth straight win today. June-dated gold added $2.20, or 0.2%, to close at $1,294.10 an ounce.

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