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Stocks Snap Win Streak as Shutdown Drags On

Oil closed lower for the first time in 10 days

Jan 11, 2019 at 4:34 PM
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The Dow spent the entire session trading in negative territory as the partial government shutdown dragged out to a 21st day -- matching the longest U.S. government shutdown on record from late 1995-early 1996. Traders also eyed an in-line drop in consumer prices last month and looked ahead to the start of fourth-quarter earnings season, which kicks off next week. And while the Dow, S&P 500, and Nasdaq all snapped their five-day win streaks, they closed higher for a third straight week.

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

  • Technical alarm sounds ahead of Alcoa earnings.
  • Casino stock rallies into key resistance amid Icahn buzz.
  • Plus, options bulls blitz Tilray; behind GM's big surge; and the pizza stock Cowen's buying.

The Dow Jones Industrial Average (DJI - 23,995.95) was down 203 points at its session low, but pared this loss to 6 points, or 0.02%, by the close. Fifteen Dow stocks finished in the red, led by a 1.1% drop for Walgreens Boots Alliance (WBA). Pfizer (PFE) paced the 15 advancers with its 1.3% gain. For the week, the Dow added 2.4%.

The S&P 500 Index (SPX - 2,596.26) gave back 0.4 point, or 0.01%, while the Nasdaq Composite (IXIC - 6,971.48) shed 14.6 points, or 0.2%. On a weekly basis, the SPX rose 2.5%, and the Nasdaq gained 3.4%.

The Cboe Volatility Index (VIX - 18.19) surrendered 1.3 points, or 6.7%, to settle below the key 18.30 level. Week-over-week, the market's "fear gauge" slipped 14.9%.

Closing Indexes Jan 11

NYSE and Nasdaq Jan 11

5 Items on our Radar Today

  1. The U.S. House of Representatives today passed a bill that would restore funding to the Interior Department and Environmental Protection Agency, which have both been shuttered since the government shutdown began on Dec. 22. However, Senate Republican Leader Mitch McConnell adjourned the governing body for the weekend without bringing the bill up for a vote. (Reuters)
  2. Prices at full-service U.S. restaurants rose by the most since 2011 in December, according to a new report from the Labor Department. The 0.5% jump in restaurant prices last month helped offset increasing labor and food costs. (Bloomberg)
  3. Options bulls blasted Tilray as it wrapped up its best week in months.
  4. Breaking down General Motors stock's big rally.
  5. Cowen initiated coverage on this pizza stock with an "outperform" rating.

Corporate Earnings Jan 11

Unusual Options Volume Jan 11

Data courtesy of Trade-Alert

Oil Snaps Win Streak, Scores Big Weekly Gain

Oil snapped its longest win streak in nine years, with crude futures for February delivery shedding $1.00, or 1.9%, to close at $51.59 per barrel. Week-over-week, oil rose 7.6%.

Gold recovered from Thursday's drop, with the February-dated contract settling up $2.10, or 0.2%, at $1,289.50 an ounce. For the week, the malleable metal added 0.3%.

 

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