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Dear Trading God Friend, Â
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Stocks declined on Thursday, with energy companies leading the declines.
The Dow and broader U.S. stock market traded lower on Thursday, as volatile oil prices and a grim economic outlook weighed on investors' sentiment.
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Two of Wall Street's major indices finished in negative territory, with the Dow Jones Industrial Average (DIA) plunging 360.57 points, or 1.4%, to 25,706.71.
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The broad S&P 500 Index (SPY) of large-cap stocks declined 0.6% to close at 3,152.16. Eight of 11 primary sectors finished lower, with energy leading the declines. Financials, industrials and utility companies also recorded heavy losses.
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On the opposite side of the spectrum, shares of information technology and consumer discretionary companies rallied.
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The technology-focused Nasdaq Composite Index (QQQ) bucked the downtrend, rising 0.5% to finish at 10,547.75. That marked a new record high for the index.
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A measure of implied volatility known as the CBOE VIX (VXX) briefly traded above 30 on Thursday, as investors remained on edge. The so-called "investor fear index" peaked at 31.48 on a scale of 1-100 where 20 represents the historic average. It would eventually settle up 4.3% at 29.28.
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Energy stocks were under pressure on Thursday as oil prices declined. U.S. West Texas Intermediate (WTI) futures fell $1.45, or 3.6%, to $39.45 a barrel. ICE Brent futures fell $1.06, or 2.5%, to $42.23 a barrel.
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In economic data, jobless claims rose less than expected last week, while continuing claims continued to decline.
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The number of Americans filing for first-time unemployment benefits increased by 1.314 million for the week ended July 4, the Department of Labor said.
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The Final Word: The coronavirus pandemic continues to spread rapidly across the United States, with nearly 3.1 million confirmed infections. Wednesday saw the highest number of new cases at just over 60,000.
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We'll talk soon, Â
Dan
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Dan The Trading God
You Could Make $300 to $1100 Per Contract With This Simple Trade
Imagine getting really good at mastering just ONE simple trade. A trade that appears like clockwork between 9:30-10:45am on most trading days. This free step-by-step guide, by options expert, Dave Acquino, shows you how to spot and take these trades so you can walk away with daily profits!
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