Dow Jones Industrial Average Slips; Oil Drops on OPEC Worries

The tech-heavy Nasdaq is at risk of snapping its longest winning streak since February 2015

Jul 21, 2017 at 12:02 PM
facebook twitter linkedin

The Dow Jones Industrial Average (DJIA) has spent the session trading in negative territory -- down triple digits at one point -- amid stiff post-earnings downside for General Electric shares. The Dow is now on track to suffer its second straight day of losses, with the Nasdaq Composite (COMP) set to snap its 10-session winning streak -- the longest in more than two years -- and the S&P 500 Index (SPX) retreating from yesterday's record high.

Political upheaval in D.C. is only adding to the risk-off backdrop, while declining oil prices are weighing on energy stocks. At last check, September-dated crude futures were down 1.6% at $46.17 per barrel, on reports of increased production in several Organization of the Petroleum Exporting Countries (OPEC) countries. 
Continue reading for more on today's market -- and don't miss:

  • The drug stock our senior equity analyst is watching ahead of earnings.
  • Analysts: Record highs ahead for these 3 stocks.
  • Plus, a big pre-earnings put trade on Foot Locker; ISRG finds familiar support; and Cintas shares hit new highs.

midday market stats july 21

Among the stocks with unusual options volume is Foot Locker, Inc. (NYSE:FL), with more than 18,000 puts traded -- 14 times what's typically seen at this point in the day, and a new 52-week single-session peak. Most of the action has centered at the August 40 and 45 strikes, where it looks like one speculator may have initiated a long put spread for an initial cash outlay of $747,500 (6,500 contracts per spread * $1.15 net debit paid * 100 shares per contract), expecting FL to settle at $40 at expiration on Friday, Aug. 18 -- the day after the athletic apparel retailer reports earnings. FL stock is down 2.5% today at $46.80.

Intuitive Surgical, Inc. (NASDAQ:ISRG) is one of the biggest decliners on the S&P, as a cautious outlook over selling prices overshadows an earnings beat and round of bullish brokerage notes. ISRG is 3.4% lower at $939.17, though today's losses are being contained by familiar support at the 20- and 30-day moving averages.

isrg stock daily price chart july 21

Cintas Corporation (NASDAQ:CTAS) is one of the leading advancers on the SPX, after the business support name's strong earnings report was met with no fewer than three price-target hikes. CTAS stock has surged 8% to trade at $136.95, and earlier hit a record high of $139.39.


Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released! 



Special Offers from Schaeffer's Trading Partners