Stock Market News for May 10, 2017 – Zacks –

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The Nasdaq notched record high on Tuesday after Apple’s market value broke through the $800 billion barrier for the first time. The S&P 500 and the Dow, however, closed lower after North Korean ambassador to the UK said that the country will proceed with its sixth nuclear test. Additionally, drop in oil prices adversely affected energy shares.

For a look at the issues currently facing the markets, make sure to read today’s Ahead of Wall Street article.

The Dow Jones Industrial Average (DJI) declined 0.2% to close at 20,975.78. The S&P 500 fell 0.1% to close at 2,396.92 retreating from intraday record of 2,403.84. The tech-laden Nasdaq Composite Index advanced 0.3% to a record close at 6,120.59. The fear-gauge CBOE Volatility Index (VIX) finished below 10, close to levels not seen since late 2006. Decliners outnumbered advancing stocks on the NYSE by a 1.27 to 1 ratio.

Nasdaq Boosted By Apple

The tech-laden Nasdaq finished at a record high after reaching an intraday high of 6,133.00. The upside was driven by news about Apple’s (AAPL Free Report) impressive total market capitalization that crossed $800 billion.  Shares of the company rose 0.6% on Tuesday.

According to the company’s latest quarterly report, Apple’s shares exceeded a price of $153.44 per share and the company’s 5.214 billion outstanding shares takes its total market capitalization just above $800 billion.

North Korean Ambassador’s Comments

North Korean ambassador to the UK, Choe Il on Tuesday commented that North Korea is ready to conduct its sixth nuclear test. Choe Il went a step ahead by threatening to destroy U.S. strategic assets in case U.S. makes any provocations.  These comments had an adverse impact on investors’ sentiments which ultimately had a negative impact on the broader market.

Oil Prices Drop

Oil prices settled lower on Tuesday as investors kept a close watch on rising U.S. crude production amid Saudi Arabia’s oil minister Khalid Al-Falih’s comments regarding a possible extension of cuts in crude production by major oil producers. 

Investors digested the short-term Energy Outlook report released by the U.S. Energy Information Administration (EIA) on Tuesday. The EIA predicted U.S. crude production would increase at an average 9.31 million barrels per day in the current year, an increase of 1% from the earlier forecast.  Moreover, EIA projects next year’s output at 9.96 million barrels per day, an increase of 0.6% from the earlier prediction.

Fall in oil prices dragged down energy shares, which ultimately had an adverse impact on the broader market. WTI crude prices dropped by $0.55, or 1.2%, to $45.88 a barrel. The broader Energy Select Sector SPDR (XLE) declined 0.8%, emerging as the worst performing sectors of S&P 500. Some of the key holdings of the energy sector in the S&P 500 including Chevron Corp (CVX Free Report) , ConocoPhillips (COP Free Report)  and Occidental Petroleum (OXY Free Report)  fell by 1.5%, 1.8% and 1.2% respectively. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.   

Stocks that made Headlines

American Airlines Up on Record April Traffic, Upbeat Q2 View

Premier passenger carrier, American Airlines Group Inc. (AAL Free Report) saw its shares rise 4.76% to $47.08 at the close of business on Apr 9, following the release of its traffic report for the month of April. (Read More)

Cincinnati Bell Reports Narrower-than-Expected Q1 Loss

Cincinnati Bell Inc. (CBB Free Report) reported mixed financial numbers in the first quarter of 2017. (Read More)

Electronic Arts Q4 Earnings Decrease, Revenues Rise Y/Y

Electronic Arts (EA Free Report) reported fourth-quarter fiscal 2017 results, wherein the company reported earnings (on a GAAP basis) of $1.81 per share compared with the prior-year quarter’s earnings of $2.79. (Read More)

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