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

All three benchmarks fell lower today

Managing Editor
Jan 18, 2022 at 4:32 PM
facebook twitter linkedin


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:

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

  1. 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)
  2. 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)
  3. Retail giant dragged by analyst downgrade.
  4. Another great Schaeffer's top pick for your 2022 portfolio.
  5. Why call traders should pick this chemical specialist.

Corporate Earnings Jan 18

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. 

 

Stop leaving money on the table with the same old broken options trading approach...

There is no options strategy that more perfectly capitalizes during earnings season better than this simple call and put buying strategy. Perfect for aggressive traders looking to recover their suffering portfolios so far in 2022. With the simplest possible options strategy, Schaeffer's team with 100+ years of options trading excellence, target 200% gains on every single trade. So many trades are being beaten down by the market, but don't be one of them! Don't waste another second... join us right now before the next trade is released! 

 
Schaeffer's Daily Bulletin Offer
 


 


 
Special Offers from Schaeffer's Trading Partners