Crude Crash Crushes Dow Jones Industrial Average

The Dow Jones Industrial Average (DJIA) ended lower today, though not before touching a record intraday high. The drop was aided by a sharp decline in oil prices, which sunk into bear-market territory, resulting in a drastic tumble for energy stocks. The S&P 500 Index (SPX) felt the pain as well, and the tech-heavy Nasdaq Composite (COMP) also struggled after enjoying its best day of 2017 yesterday. Outside of crude, retail stocks were hit by news of Amazon's new fashion service, and traders digested promises of tax reform from House Speaker Paul Ryan and Treasury Secretary Steven Mnuchin.

• Options volume erupted on the United States Oil Fund (USO).
• Buy calls on these 2 biotech ETFs, if history is any indicator.
• Price-target cuts dug into this restaurant stock.
• Plus, a sizzling semiconductor stock; CarMax’s big day tomorrow; and 3 stocks that shot higher.

The Dow Jones Industrial Average (DJIA - 21,467.14) lost 61.9 points, or 0.3%, after touching a record intraday high of 21,535.03. Nineteen of the 30 Dow stocks ended lower, with General Electric stock bringing up the rear, dropping 2.3%. Healthcare stocks bucked the trend, with Merck and Pfizer the top advancers, gaining 1.3% and 1%, respectively.

The S&P 500 Index (SPX - 2,437.03) fell 16.4 points, or 0.7%. The Nasdaq Composite (COMP - 6,188.03) gave back 51 points, or 0.8%. 

The CBOE Volatility Index (VIX - 10.86) fell 0.5 point, or 4.7%.

1. Amazon announced Prime Wardrobe, a subscriber-based fashion business with doorstep delivery. The service, which is still in a testing period, represents a foray by the e-tail giant into establishing its presence in fashion subscription boxes. (Bloomberg)
2. Ford Motor will export some production of its Ford Focus car to China, despite initially agreeing earlier in the year to send production to Mexico. The move is expected to save Ford $500 million, and is the first manufacturing decision by new CEO Jim Hackett. (Reuters) 
3. A semiconductor stock to keep an eye on. 
4. How options traders are playing CarMax stock ahead of earnings.
5. 3 stocks that rocketed higher today.

Data courtesy of Trade-Alert

Commodities

Oil entered bear-market territory, on concerns increased production out of U.S. and Libya will dampen efforts from other major oil producers to reduce global supplies. July-dated crude futures expired down 97 cents, or 2.2%, at $43.23 per barrel -- the lowest finish for a front-month contract since September. August-dated crude closed down 92 cents, or 2.1%, at $43.51 per barrel.

Gold closed at its lowest point in five weeks, after a round of relatively hawkish comments from Fed officials. August-dated gold futures fell $3.20, or 0.3%, to settle at $1,243.50 an ounce.