Worst Week Since March for Dow, S&P

Gold continued to rise alongside increased need for "safe haven" investments

Aug 11, 2017 at 4:35 PM
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The Dow Jones Industrial Average (DJIA) managed to end its three-day losing streak today, even though tensions with North Korea seem to increase by the hour. In the latest jab at the rogue state, President Trump said the leader of North Korea will "truly regret" any threat toward U.S.-controlled Guam, after earlier stating that the American military is "locked and loaded." Nevertheless, a rebound in tech stocks and soft inflation data helped to offset the geopolitical concerns, helping the S&P 500 Index (SPX) and Nasdaq Composite (COMP) to wins of their own.

However, it was still the worst week since March for the Dow and S&P, and the worst week since June for the Nasdaq. And while the CBOE Volatility Index (VIX) -- the stock market's "fear index" -- trimmed some of yesterday's gains, the VIX wrapped up its biggest weekly gain since December 2015. 

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

  • The best stocks to buy after a VIX spike.
  • The latest retail earnings casualty.
  • One options trader is betting on steeper losses for this semiconductor stock.
  • Plus, the FAANG stock in rally mode; the worst stocks on the NYSE and NASDAQ today; and Amazon's latest victim.

The Dow Jones Industrial Average (DJIA - 21,858.32) ended with a gain of 14.3 points, or 0.07%. Fourteen of the Dow's 30 stocks ended higher, led by 1.5% rallies for Microsoft and Cisco Systems. Travelers paced the 15 losers, dropping 1.2%, while IBM stock finished flat. For the week, the Dow fell 1.1%.

The S&P 500 Index (SPX - 2,441.32) gained back 3.1 points, or 0.1%. The tech-heavy Nasdaq Composite (COMP - 6,256.56) gained 39.7 points, or 0.6%. For the week, the SPX and COMP fell 1.4% and 1.5%, respectively.

The CBOE Volatility Index (VIX - 15.51) lost 0.5 point, or 3.3%, but  touched an intraday high of 17.28 today -- its highest point since the day after the presidential election. For the week, the VIX skyrocketed 54.6%.

Closing Indexes Summary August 11

NYSE & Nasdaq August 11

5 Items on Our Radar Today

  1. President Trump has reportedly decided to send a team led by his son-in-law and senior advisor Jared Kushner to Israel. The mission for the team will be to attempt to accomplish a peace treaty between Israel and Palestine. (Bloomberg)
  2. Only 18% of current iPhone users admitted they'd be willing to buy a new high-end Apple phone for more than $1,000, according to a Barclays survey. The luxury iPhone 8 could reportedly cost between $1,200 and $1,400. (CNBC)
  3.  The FAANG stock in rally mode.
  4.  The worst stocks on the NYSE and Nasdaq today.
  5.  Amazon's latest victim.

Corporate Earnings Chart August 11

Unusual Options Activity August 11
Data courtesy of Trade-Alert

Commodities

Oil futures ended higher today, but banked a second weekly decline, after the International Energy Agency (IEA) said some members of the Organization of the Petroleum Exporting Countries (OPEC) are "showing signs of weakening their resolve" to stick to output agreements. September-dated crude finished up 23 cents, or 0.5%, at $48.82 per barrel, logging a weekly loss of 1.5%.

Gold futures had a positive end to the week, ending at their highest price since the beginning of June, as tension with North Korea increasing the need for "safe haven" precious metals. December-dated gold settled up $3.90, or 0.3% at $1,294 an ounce, enjoying a 2.3% lift for the week.

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