Stocks could not gain momentum heading into the weekend
U.S. stocks struggled for upside today as investors braced for Hurricane Irma, which is expected to make landfall in Florida on Sunday. While the Dow Jones Industrial Average (DJIA) and S&P 500 Index (SPX) both spent much of the day trading near breakeven, the Nasdaq Composite (COMP) experienced heavy losses. And while the Dow managed to close higher thanks to Home Depot and Travelers -- with the latter stock recently hit by hurricane headwinds -- a major sell-off in shares of Equifax following the credit agency's massive security breach kept a lid on the SPX, although all three major indexes closed the week in the red. This risk-off backdrop was seen elsewhere, too, with the CBOE Volatility Index (VIX) posting its first weekly win in a month, and gold managing a third straight weekly advance.
Continue reading for more on today's market, including:
- A rare options trade on this big-cap ETF.
- 2 video game stocks Goldman Sachs says to buy.
- Yelp shares just hit fresh highs, and call volume boomed.
- Plus, Snap calls pop; a drug stock to watch; and how to trade events outside earnings season.
The Dow Jones Industrial Average (DJIA - 21,797.79) managed to add 13 points, or 0.1%, but finished well off its highs. Travelers led the 10 Dow advancers with a 4% rise. Out of the 20 losers, Apple stock was the worst off, giving back 1.6%. The Dow gave back 0.9% for the week.
The S&P 500 Index (SPX - 2,461.43) trimmed 3.7 points, or 0.1%, bringing its weekly deficit to 0.6%. The Nasdaq Composite (COMP - 6,360.19) lost 37.7 points, or 0.6%. The tech-heavy index closed the week down 1.2%.
The CBOE Volatility Index (VIX - 12.12) closed up 0.6 point, or 4.9%. The VIX added 19.6% for the week.
5 Items on Our Radar Today
- Goodyear is working on a smart tire that can track the condition of the car and uses cloud computing analytics to relay information. Users could connect the technology to an app that informs them when to put air in their tires and when to rotate their tires. (USA Today)
- Even though President Trump pulled the U.S. from the Paris Climate Agreement, the U.S. Senate Appropriations Committee just approved a bill that allocates $10 million to the body that funds the agreement. The $51 billion spending bill also appropriated money to the Intergovernmental Panel on Climate Change. (Reuters)
- Snap calls popped during the stock's rally today.
- The drug stock due for a short squeeze.
- An insider explains how to trade events outside of earnings season.
Data courtesy of Trade-Alert
Commodities
After seeing strong gains in recent days, oil prices fell sharply today on speculation Irma's impact will slow demand for crude-related products. October-dated crude futures fell $1.61, or 3.3%, to close at $47.48 per barrel. Despite this, oil added 0.4% this week.
Gold prices rose once again, notching a third straight weekly win in the process. December-dated gold picked up 90 cents to end at $1,351.20 an ounce. Gold closed the week up 1.6%.