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Dow Jones Industrial Average Drops; Nasdaq's Worst 2 Days of 2017

Buy the Dip On This FANG Stock

Jun 12, 2017 at 4:30 PM
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A big surge for General Electric stock couldn't save the Dow Jones Industrial Average (DJIA) from retreating from record highs, as a second straight sell-off for Microsoft and Apple shares turned up the heat on the blue-chip index. While the S&P 500 Index (SPX) also closed lower, it was the tech-heavy Nasdaq Composite (COMP) that suffered the biggest losses. In fact, since its Thursday record-high close, the COMP has surrendered roughly 2.3%, its biggest two-day rout of 2017. There's potential for more volatility ahead, too, with Attorney General Jeff Sessions' testimony in front of the Senate Intelligence Committee and the start of the two-day June Fed meeting slated for tomorrow.

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

  • How our Weekly Options Countdown subscribers doubled their money in 4 days.
  • 2 semiconductor stocks that have options traders' full attention.
  • History suggests you should buy the dip on this FANG stock.
  • Plus, Neuroderm stock bucks the broad-market trend; the tech ETF with surging option volume; and 2 Apple suppliers on watch.

The Dow Jones Industrial Average (DJIA - 21,235.67) gave up 36.3 points, or 0.2%. AAPL stock paced the 13 declining Dow components, losing 2.5%, while GE led the gainers with a 3.8% surge.

The S&P 500 Index (SPX - 2,429.39) fell 2.4 points, or 0.1%. Likewise, the Nasdaq Composite (COMP - 6,175.47) gave up 32.5 points, or 0.5%, but ended well off its intraday lows. Over the last two days, the Nasdaq dropped 2.31% -- its steepest since early December.

The CBOE Volatility Index (VIX - 11.46) rallied as high as 12.37 in intraday trading, before settling with a gain of 0.8 point, or 7.1%.

closing indexes summary june 12
nyse and nasdaq stats june 12

5 Items on Our Radar Today:
  1. McDonald’s Corporation reportedly plans to hire 250,000 employees this summer. It also plans to utilize Snapchat as a means for younger potential employees to apply for positions within the company. (CNBC)
  2. German discount grocer Aldi is planning on investing $3.4 billion in expansion of its U.S. base, and plans to add another 400 stores by the end of 2018. The expansion represents efforts to compete with rivals Wal-Mart, Kroger, and German rival Lidl. (Reuters)
  3. Sale rumors that sent Neuroderm stock soaring.
  4. The tech ETF that saw options volume surge.
  5. Check out these 2 stocks amid the Apple stock sell-off.

unusual options activity june 12
Data courtesy of Trade-Alert

Commodities

Oil gained marginally today, after news broke that Saudi Arabia will cut crude exports in July, and amid projections for a drop in U.S. inventories. July-dated crude futures gained 25 cents, or 0.6%, to settle at $46.08 per barrel. Looking ahead, oil traders are awaiting monthly reports from the Organization of the Petroleum Exporting Countries (OPEC) and the International Energy Agency (IEA), due tomorrow and Wednesday, respectively.

Gold dipped lower today, its fourth straight decline, as the Fed’s decision regarding interest rate hikes looms. August-dated gold futures fell $2.50, or 0.2%, to $1,268.90 an ounce. September palladium, meanwhile, ended at $864.25 an ounce, its highest price since September 2014.

 

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