Dow Snaps 7-Day Win Streak As Traders React to Tax Bill Rumors

The Republican Senate tax plan will reportedly delay corporate tax cuts until 2019

Nov 9, 2017 at 4:30 PM
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It was a gloomy day on Wall Street today, with the Dow Jones Industrial Average (DJIA) down more than 250 points at its session low. The S&P 500 Index (SPX), and Nasdaq Composite (IXIC) also spent the day in the red, amid disappointing retail earnings, a struggling tech sector, and concerns about GOP tax reform. Specifically, stocks reacted to reports that Senate Republicans' tax plan -- expected to be released by the end of the week -- will delay corporate tax cuts until 2019. However, stocks pared their losses into the close, after the House Ways and Means Committee passed the House GOP's bill, which could be voted on as soon as next week. Nevertheless, the Dow snapped its seven-session win streak.     

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

  • It could be time to short this blue chip.
  • JC Penney stock could sink to record lows tomorrow.
  • How options traders are playing Alibaba's Singles Day.
  • Plus, the retail stock to watch; inside Roku's first-ever earnings report; and why Micron stock could stay hot.

The Dow Jones Industrial Average (DJIA - 23,461.94) ended with a loss of 101.4 points, or 0.4%, for its first close below its 10-day moving average since late September. Walt Disney (DIS) led the 11 Dow gainers with a 1.5% advance, while McDonald's (MCD) paced the 19 losers with a 1.8% drop.

The S&P 500 Index (SPX - 2,584.62) closed down 9.8 points, or 0.4%, while the Nasdaq Composite (IXIC - 6,750.05) ended with a loss of 39.1 points, or 0.6%.
The CBOE Volatility Index (VIX - 10.50) added 0.7 point, or 7.4%, for its highest close in two weeks.

Closing Indexes Summary Nov 9
NYSE and Nasdaq Nov 9

5 Items on Our Radar Today

  1. Amazon will introduce pop-up stores at select Whole Foods locations this holiday season, to give shoppers the chance to test-drive Amazon products before buying them and to learn about Amazon's Prime membership. Starting next week, select stores part of the grocery chain will also roll out Black Friday deals for Amazon devices. (CNBC)
  2. In the wake of  Russia's alleged interference with the 2016 U.S. presidential election, Facebook CEO Mark Zuckerberg launched a free training program to teach U.S. businesses about Facebook and its advertising. Over the next year, Facebook's training team will visit 30 cities, including Houston, Texas, and Des Moines, Iowa.  (Reuters)
  3. The retail stock that could rocket higher by Black Friday.
  4. Inside Roku's first-ever earnings release.
  5. History suggest Micron stock could stay hot.

Corporate Earnings Chart Nov 9

Unusual Options Activity Nov 9
Data courtesy of Trade-Alert


Crude prices settled higher today, amid reports of upcoming supply cuts by major exporters and concern over political developments in Saudi Arabia. December-dated oil futures ended up 36 cents, or 0.6%, at $57.17 per barrel.

Gold also closed higher today, hitting a three-week high, as the U.S. dollar fell over uncertainty surrounding tax reform plans. December-dated gold ended up $3.80, or 0.3%, at $1,287.50 an ounce.


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