Stocks Retreat From Record Highs; GE Sinks Dow

General Electric stock dropped amid dividend concerns

by Katie Coburn

Published on Oct 23, 2017 at 4:34 PM

Despite touching record highs in early trading, the Dow Jones Industrial Average (DJIA), S&P 500 Index (SPX), and the Nasdaq Composite (IXIC) each closed lower today, with the Dow and S&P both breaking their six-session win streaks. General Electric (GE) stock helped weigh the Dow down, dropping amid dividend concerns sparked by the blue chip's lackluster earnings report on Friday.

Traders also digested President Trump's comments that he is "very, very close" to selecting the next Federal Reserve chair. Trump has interviewed a handful of people for the position, including current chair Janet Yellen, Fed Governor Jerome Powell, and Stanford economist John Taylor. Looking ahead, a handful of big-cap stocks will be in focus this week, as the pace of earnings reports hits fever pitch.

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

  • Wall Street's 'fear gauge' is flashing a rare signal.
  • How the Toys 'R' Us' bankruptcy is affecting Hasbro stock.
  • 2 warning signs for Texas Instruments bulls before earnings.
  • Plus, how options traders are playing Chipotle stock ahead of earnings; inside Roku stock's new analyst ratings; and why one pharma stock plunged 45% today.

The Dow Jones Industrial Average (DJIA - 23,273.96) touched a record high of 23,368.37, before ending with a loss of 54.7 points, or 0.2%. Wal-Mart Stores (WMT) led the pack of 14 Dow gainers with a 1.4% gain, while GE paced the 16 losers with a 6.3% drop.

The S&P 500 Index (SPX - 2,564.98) hit a record high of its own at 2,578.29, before ending down 10.2 points, or 0.4%. The Nasdaq Composite (IXIC - 6,586.83) touched an all-time peak of 6,641.57, but ended down 5.1 points, or 0.5%.
 
The CBOE Volatility Index (VIX - 11.07) gained 1.1 point, or 11% -- its highest close since early September.

Closing Indexes Summary Oct 23
NYSE and Nasdaq Stats Oct 23

5 Items on Our Radar Today

  1. Amazon announced that customers in select states will be able to use the Amazon app to order and pay for take-out food from certain restaurants starting in November. Participating states include Seattle, New York, Massachusetts, Connecticut, New Jersey, Pennsylvania, Maryland, and Washington, D.C. (CNBC)
  2. Netflix is planning on spending $7 billion to $8 billion on content next year, which is an increase from the $6 billion it spent in 2017. To help fund this venture, the online TV streaming company said it will issue $1.6 billion in high-yield bonds, marking its biggest bond deal ever. (MarketWatch)
  3. How options traders are playing Chipotle stock ahead of earnings.
  4. Why one analyst says to buy Wall Street newbie Roku stock.
  5. Behind DBV Technologies stock's 45% plunge.


Corporate Earnings Oct 23

Unusual Options Activity Oct 23
Data courtesy of Trade-Alert

Commodities

Crude ended slighty higher today, amid declining Iraqi exports and reports of Organization of the Petroleum Exporting Countries (OPEC) production-cut compliance. December-dated oil futures ended up 6 cents, or 0.1%, at $51.90 per barrel.

Gold also managed to eke out a small gain today, erasing early losses as stocks retreated from record highs. December-dated gold ended up 40 cents, or 0.03%, at $1,280.90 an ounce.


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