Dow Drops More Than 500 Points Ahead of Blue-Chip Earnings

All three benchmarks fell lower today

Emma Duncan

Managing Editor

Jan 18, 2022 at 4:32 PM

GS
MSFT
ATVI
SPX
IXIC
DJIA

All three major indexes started off the holiday-shortened week with steep losses, dragged lower by surging bond yields and more disappointing bank earnings. The Dow secured its third-straight triple-digit drop and the tech-laden Nasdaq logged its first close below the 200-day moving average since April 2020.

Goldman Sachs (GS) missed fourth-quarter estimates and shared a large increase in operation spending. Also in focus is the buyout of Activision Blizzard (ATVI) by Microsoft (MSFT) for $68.7 billion in cash. Another round of big bank earnings is expected before the bell tomorrow, as well as some from blue chips UnitedHealth Group (UNH) and Procter & Gamble (PG).

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

Options traders target volatile electric vehicle stock.
Bank powerhouse suffering a pre-earnings plunge.
Plus, analyst drags retailer; another top 2022 pick; and chemical name could be a call trader favorite.

The Dow Jones Average (DJI - 35,368.47) shed 543 points, or 1.5% for the day. Visa (V) led the seven gainers today, adding 0.5%, and GS paced the laggards with a 7% fall.

The S&P 500 Index (SPX - 4,577.11) moved 85.7 points lower, or 1.8%, while the Nasdaq Composite (IXIC - 14,506.90) dropped 386.9 points, or 2.6%, for today's session.

Lastly, the CBOE Volatility Index (VIX - 22.79) added 3.6 points, or 18.8% for the day.

Closing Indexes Summary Jan 18

NYSE and Nasdaq Stats Jan 18

Former New York Post Digital Editor-in-Chief Michelle Gotthelf Tuesday filed a sexual harassment lawsuit against Col Allan, a previous boss she had at the news platform. (Bloomberg)
Workwear retail name Carhartt is under scrutiny by some, and being praised by others, after its CEO Mark Valade sent an email saying all employees will be required to be vaccinated by Feb. 15. (MarketWatch)
Retail giant dragged by analyst downgrade.
Another great Schaeffer's top pick for your 2022 portfolio.
Why call traders should pick this chemical specialist.

Unusual Options Activity Jan 18

Oil Climbs to an 8-Year High

Crude jumped to an eight-year high in today's session, after supply disruption inquiries related to a drone attack in Houthi took place as a threat to the United Arab Emirates (UAE). February-dated oil added $1.61, or 1.9%, to finish at $85.43 for the day.

Brushing off an early morning lift, gold futures sank in today's trading, as the broader-market weighed heavy. February-dated gold fell $4.10, or 0.2%, to close at $1,812.40 per ounce.

Follow @Schaeffers

Two High-Octane Trade Ideas. One Simple Goal: Intraday Profits.

Dynamite Day Trading Signals delivers two same-day options trades every week — powered by proprietary intraday analysis and 43+ years of trading expertise.

But this isn’t just another stream of alerts.

It’s a structured plan with clear entry and exit points – designed for traders who want to act fast, trade smart, and wrap up gains before the closing bell.

No guesswork. No overnight exposure – Just two well-researched setups per week — whether you prefer buying premium or selling it.

And the results speak for themselves: subscribers have locked in +245.8% total profit over the last six months (since inception!).

👉 Start your one-month trial now for just $10, and be ready for the next trade alert.