Dow Jones Industrial Average Slips With Fed in Focus

The Dow Jones Industrial Average (DJIA) spent most of the day in positive territory, as Apple Inc. (NASDAQ:AAPL) rallied on iPhone 7 hype, but stocks eventually succumbed to hawkish Fed comments and dropping oil prices. Amid growing expectations for a June rate hike -- and with a lot more Fed fodder to dissect this week--  the Dow, S&P 500 Index (SPX), and Nasdaq Composite (COMP) all slipped into the red by the close.

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

• How option players responded to Freeport-McMoRan Inc's (NYSE:FCX) canceled spin-off plans.
• Apple's "key beneficiary" wasn't the only stock riding iPhone 7 tailwinds.
• The latest Netflix, Inc. (NASDAQ:NFLX) rally has traders betting on short-term support. 
• Plus ... Bank of America scores a legal win, Bullard talks inflation, and a pre-earnings options frenzy for Best Buy.
  

The Dow Jones Industrial Average (DJIA – 17,492.93) ended in the red, down 8 points, or 0.1%. DuPont Co (NYSE:DD) led the 10 DJIA winners -- the only blue chip to surpass AAPL -- up 1.9%, while Microsoft Corporation (NASDAQ:MSFT) shed 1.2% to finish the day with the biggest loss.

The S&P 500 Index (SPX – 2,048.04) followed suit, losing 4.3 points, or 0.2%. The Nasdaq Composite (COMP – 4,765.78) fell 3.8 points, or 0.1%.

The CBOE Volatility Index (VIX - 15.82) jumped 0.6 point, or 4.1%, to finish the day with a gain.

5 Items on Our Radar Today:

1. It looks like Bank of America Corp (NYSE:BAC) may be off the hook for $1.27 billion in penalties related to the mortgage crisis, following a federal appeals court ruling. (MarketWatch)

2. St. Louis Fed President James Bullard said inflation could escalate under pressure from a "relatively tight" jobs market, which "is an important factor supporting" the case for a rate hike. (CNBC)

3. Best Buy Inc (NYSE:BBY) options were flying off the shelves before the retailer's upcoming earnings report.

4. Goldman Sachs is anticipating big gains for this oil-and-gas stock.

5. This aerospace stock just won an $11.3 billion contract, sparking lots of buzz in the options pits.

Data courtesy of Trade-Alert

Commodities:

July-dated crude futures fell 33 cents, or 0.7%, to $48.08 per barrel. Iran's refusal to cooperate with an output freeze, as well as a strengthening dollar, contributed to today's decline of black gold.

June-dated gold fell 0.1%, or $1.40, to $1,251.50 per ounce -- a three-week low -- due to a stronger dollar and continued hawkish Fed comments. It was the yellow metal's fourth straight loss.