Stocks Hit By Spiraling Crude, Sinking GE

The IEA said crude could stay in the $50 to $70 per barrel range through 2040

Nov 14, 2017 at 4:30 PM
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It was a negative session on Wall Street today, with the Dow Jones Industrial Average (DJIA) falling in step with General Electric (GE) -- which slumped to its lowest point since late 2011. And while a positive earnings reaction for Home Depot (HD) helped pull the Dow and S&P 500 Index (SPX) off their intraday lows, sinking oil prices kept stocks in the red.

Meanwhile, ahead of a Wall Street Journal report putting former Pimco CEO Mohamed El-Erian on President Donald Trump's short list for the Fed vice chair position, data this morning showed a bigger-than-expected rise in producer prices. Looking ahead, more inflation data will hit tomorrow, while retail sales are also due.

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

  • The rare S&P signal about to flash.
  • Options traders expect this retail stock to hit new lows by week's end.
  • Bullish betting ramps up ahead of the big Tesla Semi reveal.
  • Plus, Roku retreats from its record high; the Dow stock to watch on Thursday; and a word of warning for Expedia bulls.

The Dow Jones Industrial Average (DJIA - 23,409.47) was down more than 168 points at its session lows, before paring its losses to 30.2 points, or 0.1%. Fifteen of the 30 Dow stocks closed lower, led by GE's 5.9% drop. HD paced the advancers with its 1.6% gain.

After dipping below its 20-day moving average in intraday action, the S&P 500 Index (SPX - 2,578.87) climbed back above this key trendline to close with a slimmer 6-point, or 0.2%, loss. The Nasdaq Composite (IXIC - 6,737.87), meanwhile, shed 19.7 points, or 0.3%.

The CBOE Volatility Index (VIX - 11.59) tacked on 0.09 point, or 0.8%, for its highest close since Sept. 8.

Closing Summary Indexes Nov 14

NYSE and Nasdaq Nov 14

5 Items on Our Radar Today

  1. Senate GOP leaders are reportedly considering including a repeal of the individual mandate required by Obamacare in their tax reform proposal -- a move encouraged by one of Trump's tweets earlier this week. While Kentucky Senator Rand Paul threw his support behind the repeal, Arizona Senator John McCain said he would not comment until seeing the entire bill.  (CNBC)
  2. In the wake of failed merger talks between T-Mobile (TMUS) and Sprint (S), SoftBank -- majority owner of S -- said it is contemplating an investment in Uber. Though no agreement has been made, rumors are swirling the joint stake between SoftBank and Dragoneer Investment Group could be worth up to $10 billion. (Reuters)
  3. After touching a new record high earlier, Roku stock turned tail to end the session lower.
  4. Cisco Systems will report earnings tomorrow night, and the Dow stock has an ugly history of earnings reactions.
  5. High expectations surround underperforming Expedia, which could create selling pressure for the travel stock.

Corporate Earnings Chart Nov 14

Unusual Options Volume Nov 14
Data courtesy of Trade-Alert


Crude futures plunged today, after the International Energy Agency (IEA) said that booming U.S. shale production is one of the catalysts that will keep oil prices in the $50-$70 per barrel range through 2040. In reaction, December-dated crude closed down $1.06, or 1.9%, to settle at $55.70 per barrel.

Gold logged its second straight win, as the dollar cooled following this morning's inflation data. At the close, gold for December delivery was up $4.00, or 0.3%, at $1,282.90 an ounce.


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