Dow, Oil Sink for Second Straight Day

Oil prices fell to five-month lows on oversupply concerns

by Patrick Martin

Published on Jun 12, 2019 at 4:30 PM

The Dow pulled back for its second straight loss today, but held on to the 26,000 level. Subpar inflation data underscored expectations for an interest rate cut soon, weighing on bank stocks. A drop in oil prices and a slumping tech sector also kept the three U.S. benchmarks under pressure all day. On the trade front, President Donald Trump told reporters earlier that he has a "feeling" a deal will be reached with China. Elsewhere, investors kept an eye on Hong Kong, where protesters have clashed with police over a proposed extradition bill.

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

  • 2 red-hot restaurant stocks flashing bull signals.
  • A tariff warning sent this furniture stock to its worst day ever.
  • There's interesting options activity going on with this semiconductor stock.
  • Plus, a big bear bet on Cisco; a Broadcom earnings preview; and more trouble for the New York Knicks. 

The Dow Jones Industrial Average (DJI - 26,004.83) shed 43.7 points, or 0.2%, in today's trading. Johnson & Johnson (JNJ) led the 15 winners with a 1.3% gain, while Goldman Sachs (GS) paced the 15 losers again with a 2.3% drop.

The S&P 500 Index (SPX - 2,879.84) lost 5.9 points, or 0.2%, while the Nasdaq Composite (IXIC - 7,792.72) gave back 29.9 points, or 0.4%.

The Cboe Volatility Index (VIX - 15.91) shed 0.08 point, or 0.5%.

Closing indexes June 12

NYSE and Nasdaq June 12

5 Items on our Radar Today

  1. According to a Wall Street Journal report, Facebook (FB) CEO Mark Zuckerberg may have known about the company's questionable privacy practices. Facebook has come under investigation from the Federal Trade Commission (FTC) for reportedly sharing information of over 87 million users with Cambridge Analytica. (Reuters)
  2. Auto giant Ford Motor (F) is in hot water, after issuing a recall of 1.2 million Explorer SUVs. The recall is for a suspension issue that creates a loss in steering control, and covers models made between 2011 and 2017. The $180 million cost of fixing the defects will be felt in the second quarter, the company says. (Reuters)
  3. One Cisco bear placed a six-figure bet after a downgrade.
  4. Broadcom stock's rally has cooled as earnings loom
  5. Wall Street is leery of the New York Knicks after Kevin Durant's injury.

corporate earnings june 12

unusual options activity june 12

Data courtesy of Trade-Alert

Oil Plummets, Gold Scores Back-to-Back Gains

Black gold fell to its lowest level in five months, after a second straight weekly increase in U.S. crude stockpiles. By the close, July-dated crude fell $2.13, or 4%, to end at $51.14 per barrel.

Gold gained today, its second-straight win, as geopolitical tensions and a slumping U.S. equities market increased demand for safe-haven assets. August-delivered gold added $5.60, or 0.4%, to settle at $1,336.80 an ounce.


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