Dow Jones Industrial Average Ends Win Streak; 'Fire and Fury' Threats Send VIX Higher

The Dow still notched a 10th straight record intraday high

by Emma Gilkey

Published on Aug 8, 2017 at 4:30 PM

The Dow Jones Industrial Average (DJIA) touched a 10th straight record high in intraday trading, as Apple and bank stocks rallied. However, the index wasn't able to notch its 11th consecutive daily win, snapping its second-longest winning streak in over a year. Escalating tensions with North Korea -- including a threat of "fire and fury" from President Trump -- weighed on stocks in afternoon trading, sending the S&P 500 Index (SPX) and Nasdaq Composite (COMP) lower, and pushing the CBOE Volatility Index (VIX) -- or the stock market's "fear gauge" -- to its highest close in nearly a month.

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

  • Analysts: 3 FAANG stocks with record highs on the horizon.
  • The pharma stock soaring after drug data.
  • How options traders played Apple's big day.
  • Plus, why VIX call volume spiked; the drug stock that could rally 60%; and "headwinds facing the hospital sector."

The Dow Jones Industrial Average (DJIA - 22,085.34) broke its winning streak, finishing with a loss of 33.1 points, or 0.2%. Still, the DJIA topped out at a record 22,179.11 in intraday action. Nine of the Dow's 30 stocks ended higher, led by Apple's 0.8% rally. Merck stock paced the 20 losers, dropping 0.8%, while Home Depot finished flat.

The S&P 500 Index (SPX - 2,474.92) lost 6 points, or 0.2%, but not before touching an all-time high of 2,490.87 in intraday trading. The tech-heavy Nasdaq Composite (COMP - 6,370.46) lost 13.3 points, or 0.2%.

The CBOE Volatility Index (VIX - 10.96) gained 1 point, or 10.4%.

Closing Indexes Summary August 8

NYSE & Nasdaq August 8

5 Items on Our Radar Today

  1.  House Oversight Committee Democrats are seeking information on how much the federal government is spending at Trump's businesses. "The American people deserve to know how their tax dollars are spent," read the letter to Cabinet secretaries, which seeks information by Aug. 25.  (Bloomberg)
  2.  Following reports that North Korea created a miniature nuclear weapon to fit inside a missile, Trump fired back, saying the country will face "fire and fury like the world has ever seen" if the U.S. receives any further threats. The U.S. has not been alone in receiving threats from North Korea, and the world has continued to keep a close eye as the closed-off country launches numerous missile tests. (CNBC)
  3.  Why VIX call volume spiked.
  4.  Leerink: This pharma stock could rally another 60%.
  5.  Analysts see "the headwinds facing the hospital sector as longer-term issues." 

Corporate Earnings Chart August 8


Unusual Options Activity August 8
Data courtesy of Trade-Alert

Commodities

Crude ended lower, as an OPEC committee concluded its two-day meeting, and amid expectations for Libyan oil production to return to noral. September-dated oil futures settled down 22 cents, or 0.5%, at $49.17 a barrel.

Gold futures ended lower as the dollar gained today. December-dated gold ended $2.10, or 0.2%, lower, settling at $1,262.60 per ounce.
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