Stocks Plunge as Amazon, Intel Pace Tech Sell-Off

S&P breached its closely watched 200-day trendline for the first time since Brexit

by Emma Duncan

Published on Apr 2, 2018 at 4:25 PM

U.S. stocks finished the day in the red, due to increased trade war concerns and a massive tech sell-off. The Dow and Nasdaq both finished down triple digits, with Amazon (AMZN) stock suffering another Trump Twitter blow, and Intel (INTC) shares plummeting on Apple chip concerns. The S&P 500, meanwhile, marked its lowest close since November, and breached its closely watched 200-day moving average for the first time since the "Brexit" backlash of June 2016.

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

  • Buy calls on this Amazon rival
  • The FAANG stock testing a key level.
  • Options traders are expecting a big earnings reaction for this stock.
  • Plus, TSLA drops to a key market cap; FIT plunges to record lows; and one analyst says to buy the dip on Darden.

The Dow Jones Industrial Average (DJI - 23,644.19) finished 458.9 points, or 1.9%, lower, after being down more than 750 points at its session low. UnitedHealth (UNH) was the biggest gainer of the just two Dow stocks finishing in positive territory, adding 1.5%. McDonald's (MCD) was the only other stock to end higher, gaining 0.9%. Intel (INTC) was the worst of the decliners, shedding 6.1%.

The S&P 500 Index (SPX - 2,581.88) shed 59 points, or 2.2%. The Nasdaq Composite (IXIC - 6,870.12) lost 193.3 points, or 2.7%.

The Cboe Volatility Index (VIX - 23.62) finished the day 3.7 points, or 18.3%, higher.

Closing Indexes Summary April 2

NYSE and Nasdaq Stats April 2

5 Items on Our Radar Today

  1. Manufacturing giant General Electric (GE) has decided to sell a portion of its healthcare business to Veritas Capital for just over $1 billion. The change comes less than a year after John Flannery took his seat as the new GE CEO. (Bloomberg)
  2. London has seen a surge in murders over the past two months -- surpassing New York City. The count made its way to 37 for the English city, while the Big Apple suffered 35 homicides in February and March. Reports suggest that most of the deaths were from stabbings, as handguns were banned in 1997. However, London's City Hall stated that it “remains one of the safest [cities] in the world.” (MarketWatch)
  3. The Autopilot update dropped TSLA back to $45 billion market cap
  4. Fitbit stock fell to a record low after a downgrade.
  5. Analyst: Buy the dip on this Olive Garden parent.

There were no earnings of note today.

Unusual Options Activity April 2

Data courtesy of Trade-Alert

Gold Surges on Falling Dollar, Trade War Concerns

Oil futures ended the day lower, seeing the steepest one-day fall since early February. The fall came amid escalating concerns about a global trade war, and after Russian oil output rose last month. May-dated crude finished down $1.93, or 3%, at $63.01 per barrel.

June-dated gold finished Monday higher as the dollar struggled, and trade war concerns renewed an appetite for safe-haven assets. Gold futures settled up $19.60, or 1.4%, at $1,346.90 an ounce. 

VIX Options Signal Points to Possible Volatility Spike
VIX open interest is at an annual low
Altaba Stock May Be Sending Up a Buy Signal
AABA has seen some unusual options activity in the past couple of weeks
VFC Call Options Hot Ahead of Fiscal First-Quarter Earnings
VFC stock touched an all-time high earlier today
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