Dow Jones Industrial Average Suffers Fourth Straight Loss

Options Signal Flashing for the First Time in 2017

May 12, 2017 at 4:24 PM
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The Dow Jones Industrial Average (DJIA) spent the day wallowing in red ink, eventually ending with its fourth straight loss. Consumer discretionary stocks once again suffered, amid another batch of abysmal retail earnings and the latest April sales numbers. Traders also digested the latest inflation data and Fed comments, which fueled speculation about a June rate hike. However, the tech-rich Nasdaq Composite (COMP) avoided the same fate as the Dow and S&P 500 Index (SPX), eking out a win for both the day and the week. 

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

  • The options signal flashing for the first time in 2017.
  • The company about to receive a huge cash influx from Apple.
  • 2 retail stocks slapped with negative analyst notes.
  • Plus, the FANG stock adored by Mark Cuban; how options traders are betting on a gold rebound; and the tech stock exploring new highs.

The Dow Jones Industrial Average (DJIA - 20,896.61) was down 22.8 points, or 0.1%, by the close. General Electric (GE) dragged on the blue-chip index following a downgrade to "sell" at Deutsche Bank, dropping 2.3% to lead the 21 losing Dow stocks. Apple (AAPL) paced the bullish minority with a 1.4% jump.

The S&P 500 Index (SPX - 2,390.90) fell 3.5 points, or 0.2%, giving up 0.4% on the week. The Nasdaq Composite (COMP - 6,121.23) bucked the trend, edging 5.3 points, or 0.1%, higher on the day. For the week, the COMP scored a 0.3% gain -- its fourth straight weekly advance.

The CBOE Volatility Index (VIX - 10.40) settled with a loss of 0.2 point, or 1.9%, but remained in double-digit territory. For the week, the VIX dropped 1.9%.

Closing Indexes Summary May 12
NYSE and Nasdaq Stats May 12

5 Items on Our Radar Today:
  1. After President Donald Trump tweeted that fired FBI Director James Comey "better hope that there are no 'tapes' of our conversations before he starts leaking to the press," Press Secretary Sean Spicer played defense, claiming Trump wasn't threatening Comey. "He's simply stated a fact," Spicer said, but would neither confirm nor deny that the president is recording conversations. (CNBC)
  2. A massive global cyber attack wreaked havoc on hospitals across the The "ransomware" -- which allegedly stemmed from a leaked National Security Agency (NSA) hacking tool -- forced many British hospitals to turn patients away. (Reuters)
  3. This FANG stock has "enormous" growth potential, according to Mark Cuban.
  4. How options players are betting on a gold bounce.
  5. The tech stock that rallied 25% after earnings.

Corporate Earnings May 12
Unusual Options Activity May 12
Data courtesy of Trade-Alert


Oil prices settled the session nearly flat, with June-dated crude futures closing up 1 cent at $47.84 per barrel. Week-over-week, however, oil jumped 3.5% -- its first weekly win in a month -- on expectations the Organization of the Petroleum Exporting Countries (OPEC) and non-OPEC producers will agree to extend a crude output cut agreement at a May 25 meeting.  

Gold futures rose for a third straight session, as the dollar cooled following this morning's retail sales and inflation data. Gold for June delivery added $3.50, or 0.3%, to close at $1,227.70 an ounce -- 80 cents higher than where it settled last week. 


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