Stocks Snap Win Streak as Oil Prices Plunge

Chevron and Caterpillar were the two worst Dow stocks today

by Karee Venema

Published on Jul 11, 2018 at 4:30 PM
Updated on Jul 11, 2018 at 4:30 PM

Stocks took a hit today, as investors were rattled by plummeting oil prices and the Trump administration's threat to impose fresh tariffs on $200 billion in Chinese goods. Big losses for industrial giant Caterpillar (CAT) and energy stock Chevron (CVX) took a toll on the Dow, with the blue-chip index snapping its four-day win streak. The S&P 500 and Nasdaq also closed lower for the first time since last Tuesday, while the VIX climbed back above 13.

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

The Dow Jones Industrial Average (DJI - 24,700.45) gave back 219.2 points, or 0.9%. Caterpillar and Chevron led 24 Dow stocks lower, losing 3.2% apiece, while Walt Disney (DIS) paced the five advancers with its 1.9% gain. Verizon (VZ) finished flat.

The S&P 500 Index (SPX - 2,774.02) shed 19.8 points, or 0.7%, while the Nasdaq Composite (IXIC - 7,716.61) surrendered 42.6 points, or 0.6%.

The Cboe Volatility Index (VIX - 13.63) added 1 point, or 7.8%, but ran out of steam near its 40-day moving average.

Closing Indexes Summary July 11

NYSE and Nasdaq Stats July 11

5 Items on Our Radar Today

  1. U.S. President Donald Trump suggested at today's North Atlantic Treaty Organization (NATO) summit that member countries should boost their defense spending to 4% of gross domestic product (GDP). This is more than double the current NATO target of 2% of GDP. (Bloomberg)
  2. American Airlines (AAL) lowered its second-quarter unit revenue growth forecast, saying it now expects the total revenue per available seat mile (TRASM) to rise in the 1%-3% range, versus its previous guidance of 1.5%-3.5% growth. In reaction, AAL stock fell 8% in today's trading. (MarketWatch)
  3. JPMorgan Chase stock flashed a bearish technical signal ahead of earnings.
  4. Papa John's stock hit a new two-year low after the pizza maker's latest PR disaster.
  5. Nomura says traders should buy these two FAANG stocks.

Corporate Earnings July 11

Unusual Options Activity July 11

Data courtesy of Trade-Alert

Crude Plummets as Libyan Exports Resume

Oil prices plummeted today, as signs that Libya is on track to return to full oil production overshadowed the biggest weekly decline in domestic crude supplies in almost two years. At the close, August-dated crude futures were down $3.73, or 5%, to settle at $70.38 per barrel -- the biggest daily percentage drop for a most-active futures contract in over a year.

Gold tracked copper's losses today amid heightened trade tensions, while a stronger dollar only created stiffer headwinds. Gold for August delivery shed $11, or 0.9%, to close at $1,244.40 an ounce.

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