Nasdaq Wraps Up Worst Day Since August

Wall Street is betting on bank stocks ahead of an expected Senate vote on tax reform

Nov 29, 2017 at 4:29 PM
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The Dow Jones Industrial Average (DJIA) and S&P 500 Index (SPX) started the session hitting record highs, as traders cheered a strong third-quarter gross domestic product (GDP) reading, which helps strengthen the case for a December rate hike. The Dow eventually closed at an all-time peak, as Wall Street continued to bet on bank stocks ahead of this week's GOP tax reform vote, and UnitedHealth (UNH) stock rallied following the healthcare name's well-received investor day. Nevertheless, a sharp selloff in tech stocks pulled the SPX into negative territory -- and had the Nasdaq Composite (IXIC) logging its biggest one-day percentage loss since August.

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

  • This FAANG stock just suffered its worst day in a year.
  • 2 real estate stocks that could enjoy a Santa Claus rally.
  • This tech name could be due for a volatile Friday.
  • Plus, Western Digital's really bad day; the search is on at Chipotle; and the 2 reasons this restaurant stock was downgraded.

The Dow Jones Industrial Average (DJIA - 23,940.68) topped out at a record high of 23,959.76, before settling with a 104-point, or 0.4%, gain. Twenty of the Dow's 30 components closed higher, led by UNH's 3.1% pop. Visa (V) paced the decliners with its 3.1% drop.

The S&P 500 Index (SPX - 2,626.07) hit an all-time peak of 2,634.89, but erased these gains to close down 1 point, or 0.04%. The Nasdaq Composite (IXIC - 6,824.34) spent the entire session in the red, giving back 88 points, or 1.3%, at the close.

The CBOE Volatility Index (VIX - 10.70) rose 0.7 point, or 6.7%, for its highest close since Nov. 17.

Closing Indexes Summary Nov 29

NYSE and Nasdaq Nov 29

5 Items on Our Radar Today

  1. The Fed's Beige Book showed "a slight improvement in the outlook among contacts in reporting districts" through mid-November. The report also signaled "modest or moderate" wage growth, and said inflation pressures "have strengthened since the last report." (Bloomberg)
  2. Amazon (AMZN) subsidiary Amazon Web Services (AWS) today announced a raft of products to help companies delve further into the artificial intelligence (AI) sphere. Included in the bunch is DeepLens, an AI-powered camera that costs $250. (The Verge)
  3. Western Digital (WDC) stock breached two key technical levels amid today's big retreat.
  4. Chipotle Mexican Grill (CMG) said it is searching for a new CEO, after announcing its co-founder and current chief will be stepping down. CMG stock settled up more than 5% on the day.
  5. 2 reasons Guggenheim downgraded Wingstop stock.

Corporate Earnings Chart Nov 29

Unusual Options Activity Nov 29
Data courtesy of Trade-Alert

Commodities

Oil prices brought their daily losing streak to three, as uncertainty over Russia's willingness to agree to a long-term supply-cut extension at tomorrow's Organization of the Petroleum Exporting Countries (OPEC) meeting overshadowed a bigger-than-expected drop in weekly U.S. crude inventories. At the close, January-dated crude was down 69 cents, or 1.2%, at $57.30 per barrel.

A strengthening dollar put pressure on gold prices today. Gold for February delivery -- now the most active contract -- settled down $11.90, or 0.9%, at $1,287.30 an ounce.

 

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