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Dow Jones Industrial Average Struggles as Nasdaq Shines Again

Nasdaq Signal Sounding for First Time in Years

May 1, 2017 at 4:33 PM
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The Dow Jones Industrial Average (DJIA) spent the day bouncing around breakeven, as the Nasdaq Composite (COMP) stole the show once again. It was another huge day for tech stocks -- including Apple shares -- helping the tech-heavy Nasdaq rally to yet another record high. Elsewhere, the Dow and S&P 500 Index (SPX) were jolted midday when President Donald Trump said he considered laws that would break up the big banks, and while the SPX bounced back, the Dow settled lower. Traders also digested a rare drop in the personal consumption expenditures (PCE) index -- a Fed-watched measure of inflation -- as well as dips in construction spending and manufacturing activity. 

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

  • The rare Nasdaq signal going off for the first time in years.
  • How options traders are positioning themselves for Facebook earnings.
  • The drug news that had this biotech stock near the bottom of the Nasdaq.
  • Plus, inside Twitter's surge; analysts take aim at a red-hot tech stock; and the key levels to watch ahead of this cloud concern's earnings release. 

The Dow Jones Industrial Average (DJIA - 20,913.46) traded in a 78-point range today, ultimately landing in the red, down 27.1 points, or 0.1%. Eleven of 30 Dow components closed higher, led by AAPL stock's 2.1% gain. The biggest loser was Boeing, closing with a 1.3% loss. 

The S&P 500 Index (SPX - 2,388.33) managed a 4.1-point, or 0.2%, win. The Nasdaq Composite (COMP - 6,091.60) climbed 44 points, or 0.7%, hitting a record high for a sixth straight day, at 6,100.73. 

The CBOE Volatility Index (VIX - 10.11) shed 0.7 point, or 6.6%, after hitting another 10-year low of 9.90 earlier in the session. 

closing indexes summary may 1
nyse_nasdaq stats may 1

5 Items on Our Radar Today:

  1. In the same interview where he mentioned breaking up the big banks, President Trump said he was open to meeting North Korean leader Kim Jong-un. Trump said he'd be "honored to do it" under the "right circumstances." (Reuters)
  2. A Twitter user going by "thedarkoverlord" is claiming to have hacked Netflix and released episodes of the upcoming season of "Orange is the New Black." The claims have yet to be verified, and it doesn't appear investors are concerned, with NFLX stock hitting a record high of $157.70 today. (USA Today)
  3. The C-suite news that sent Twitter stock soaring.
  4. Why Jefferies downgraded this red-hot tech stock.
  5. The key levels to watch before and after Akamai Technologies earnings.

Corporate Earnings May 1
Unusual Options Activity May 1
Data courtesy of Trade-Alert

Commodities

Oil prices traded lower today, after lackluster manufacturing data and amid growing concerns of increased global output. June-dated crude futures settled 49 cents, or 1%, lower at $48.84 a barrel -- an almost five-week low.

Gold prices also fell today, closing at the lowest point in three weeks, after a Fed-watched inflation measure fell for the first time in a year. By the close, gold -- considered an inflation hedge -- for June delivery was down $12.80, or 1%, at $1,255.50 an ounce. 
 

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