Stock Market News For Jan 17, 2018
Zacks Investment Research | Jan 16, 2018 10:12PM ET
Benchmarks ended in the red on Tuesday after recent political tensions weighed on sentiment despite strong quarterly earnings results. Better-than-expected fourth-quarter earnings results and updated 2018 earnings projection from UnitedHealth led key U.S. indexes to reach new highs initially.
However, all the three indexes fell at the close with the Dow posting its biggest reversal in a day since Feb. 10, 2016 after briefly moving above the 26,000 mark for the first time. Additionally, oil prices fell after investors decided to lock in gains, which in turn weighed on the energy sector. Markets were closed on Monday due to Martin Luther King Jr. Day.
How the Benchmarks Fared?
The Dow Jones Industrial Average (DJI) decreased 7.68 points to close at 25,792.86. The S&P 500 fell 0.4% to close at 2,776.42. The tech-laden Nasdaq Composite Index closed at 7,224.00, losing 0.5%. The fear-gauge CBOE Volatility Index (VIX) increased 14.5% to close at 11.63. A total of around 8.30 billion shares were traded on Tuesday, higher than the last 20-session average of 6.48 billion shares. Decliners outnumbered advancers on the NYSE by a 2.04-to-1 ratio. On Nasdaq, a 2.18-to-1 ratio favored declining issues.
What Weighed On the Benchmarks?
Markets lost some of its early shine on Tuesday and closed in negative territory after special Counsel Robert Mueller reportedly subpoenaed President Trump’s former chief strategist Steve Bannon last week. A subpoena of this kind was issued by Mueller for the first time over the investigation of a possible link between Russian officials and members of Trump election campaign.
Additionally, oil prices fell after investors decided to lock in recent gains. Oil prices moved more than $70 a barrel recently, which prompted investors to indulge in profit-taking on Tuesday. Decrease in oil prices led the Energy Select Sector SPDR (XLE (NYSE:XLE)) to decline 1.3%, emerging as the worst performing sector of S&P 500.
Some of the sectors key components, including Chevron Corporation (NYSE:CVX) and Exxon Mobil Corporation (NYSE:XOM) fell 1.2% and 0.6%, respectively. Both Chevron and Exxon Mobil hold a Zacks Rank #3 (Hold). You can see Zacks Investment Research
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