Dow Jones Industrial Average Stumbles; S&P, Nasdaq Snap Winning Streaks

How to Profit From June's Low Volatility

Josh Selway
May 30, 2017 at 4:27 PM
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The Dow Jones Industrial Average (DJIA) struggled today, closing lower for the second straight session as investors considered the latest economic data. Of note, personal income and consumer spending both rose in April, though the most recent reading on consumer confidence came in softer than expected. Elsewhere, sharp losses from bank stocks and the energy sector pressured the Dow and the S&P 500 Index (SPX), while the Nasdaq Composite (COMP) also fell despite another strong showing from a few tech giants -- including Amazon stock's latest milestone. As such, the S&P and Nasdaq snapped their seven-session winning streaks.

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

  • Founder and CEO Bernie Schaeffer explains how options traders can profit off June's typically low volatility
  • 2 stocks making big moves on major patent news
  • 3 reasons analysts like Zynga stock.   
  • Plus, the best stocks to own in June; why traders should steer clear of the XLF; and the pair of financial stocks attracting notable options attention.

The Dow Jones Industrial Average (DJIA - 21,029.47) gave back 50.8 points, or 0.2%, with 14 of its 30 components closing higher. Leading the way was Verizon stock, which added 1.9%. Pacing the losers was bank stock Goldman Sachs, sinking 2%. 

The S&P 500 Index (SPX - 2,412.91) declined 2.9 points, or 0.1%. The Nasdaq Composite (COMP - 6,203.19) closed down 7 points, or 0.1%. 

The CBOE Volatility Index (VIX - 10.38) added 0.6 point, or 5.8%, to land back in double-digit territory. 

Closing Indexes Summary May 30
NYSE and Nasdaq Stats May 30


5 Items on Our Radar Today:
  1. Mike Dubke, President Trump's communications director, confirmed his resignation after just three months on the job. The Trump administration has been dealing with internal leaks to the media, as well as speculation of collusion with Russia. (Reuters)
  2. The Conference Board's consumer confidence index fell for a second straight month in May, dropping to 117.9 from 119.4 in April. Earlier this year, the index hit a 16-year high. (MarketWatch)
  3. The 25 best stocks to own in June.
  4. Why short-term traders may want to avoid the Financial Select Sector SPDR Fund (XLF).
  5. 2 bank stocks being targeted by weekly options traders.

Corporate Earnings May 30

Unusual Options Activity May 30
Data courtesy of Trade-Alert

Commodities

Expectations for rising output out of Libya weighed on crude futures today. By the close, July-dated oil fell 14 cents, or 0.3%, to end at $49.66 per barrel. 

Despite a weaker dollar, gold futures pulled back from one-month highs. August-dated gold -- the most active contract -- fell by $5.70, or 0.5%, to end at $1,265.70 an ounce.


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