Chip Stocks Drag Nasdaq Lower

Retail stocks were in focus as Black Friday and Cyber Monday sales numbers rolled in

Nov 27, 2017 at 4:26 PM
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The U.S. stock market started the day trading in positive territory, with the Dow Jones Industrial Average (DJIA), S&P 500 Index (SPX), and Nasdaq Composite (IXIC) all carving out new highs. Retail stocks were one of the driving forces behind the early action, as traders reacted to record-setting Black Friday online sales -- and upbeat expectations for Cyber Monday sales -- while strong housing data helped boost Wall Street's collective mood. And while sinking oil prices throttled intraday gains for the Dow and SPX, chip stocks couldn't overcome negative analyst attention, sending the Nasdaq into the red.

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

  • 2 big-cap retail stocks with affordable options.
  • Booting GE could be bad for the Dow, according to founder and CEO Bernie Schaeffer.
  • The tech stock expected to soar another 30%.
  • Plus, pre-earnings put players are targeting this software stock; 2 stocks soaring on bitcoin buzz; and the M&A news that boosted Barracuda.

The Dow Jones Industrial Average (DJIA - 23,580.78) hit an intraday high of 23,638.92, before paring this gain to 22.8 points, or 0.1%. Fifteen of the Dow's 30 components closed higher, led by a 1.4% pop for Verizon Communications (VZ). DowDuPont (DWDP) paced the 13 decliners with its 1.4% drop, while Pfizer (PFE) and Wal-Mart Stores (WMT) were flat.

The S&P 500 Index (SPX - 2,601.42) topped out at an all-time peak of 2,606.41, but was down 1 point, or 0.04%, at the close. After tagging a record high of 6,897.43, the Nasdaq Composite (IXIC - 6,878.52) gave back 10.6 points, or 0.2%.

The CBOE Volatility Index (VIX - 9.87) added 0.2 point, or 2.1%.

Closing Indexes Summary Nov 27

NYSE and Nasdaq Nov 27

5 Items on Our Radar Today

  1. A battle is brewing over who will lead the Consumer Financial Protection Bureau (CFPB), following the resignation of Richard Cordray. While President Trump tapped current Office of Management and Budget Director Mick Mulvaney to temporarily head the consumer protection agency, Cordray named his chief of staff Leandra English as acting director. The conflict will likely be resolved by the U.S. District Court in Washington. (Reuters)
  2. Tumblr founder and CEO David Karp announced today he is leaving the company by year's end, and will temporarily be replaced by Jeff D'Onofrio, president and chief operating officer. Tumblr was acquired by Yahoo in 2013, and Karp's departure comes after Verizon's acquisition of Yahoo's core assets earlier this year.  (TechCrunch)
  3. Autodesk stock is seeing a surge in put buying ahead of the software developer's earnings report, due out tomorrow night.
  4. Bitcoin buzz had Marathon Patent Group (MARA) and U.S. Global Investors (GROW) popping.
  5. Barracuda Networks stock surged more than 16% on news the cybersecurity name is being taken private.

Unusual Options Activity Nov 27
Data courtesy of Trade-Alert


Oil prices fell today, after a report released on Friday showed the U.S. rig count rose last week. Uncertainty ahead of Thursday's Organization of the Petroleum Exporting Countries (OPEC) meeting also pressured black gold, with January-dated crude futures closing down $0.84, or 1.4%, at $58.11 per barrel.

Gold bounced back from last week's loss, even as the U.S. dollar strengthened. At the close, the December-dated contract was up $7.10, or 0.6%, to $1,294.40 an ounce.


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