Dow Wins Another Week Despite Energy, Tech Struggles

The Fed was in focus at the start of the week, with investors pricing in an interest rate hike from the central bank ahead of its June meeting -- which resulted in heavy options trading on the housing sector. Traders were also digesting a continued sell-off in the energy and tech sectors, including sharp losses from Apple stock. These themes continued to play out throughout the week, with oil prices crashing and so-called FAANG stocks extending their losses. But even with the S&P 500 Index (SPX) and Nasdaq Composite (COMP) struggling for gains for a second straight week, the Dow Jones Industrial Average (DJIA) is safely on pace for a fourth straight weekly win. 

Options Traders Pound Struggling Energy, Tech Stocks

The substantial drop in energy and tech stocks had options traders in high gear. Specifically, put volume exploded on the United States Oil Fund (USO), as the exchange-traded fund (ETF) hit a fresh annual low. Tech traders targeted the Technology Select Sector SPDR Fund (XLK), which also saw an abundance of put trading, as well as the PowerShares QQQ Trust (QQQ). This weakness from tech stocks wound up producing a rare Nasdaq-100 Index (NDX) signal, and may have created an enticing buying opportunity, especially for these two semiconductor stocks. 

Amazon Avoids FAANG Weakness with Whole Foods Purchase

Even so, Apple stock wasn't the only FAANG member to struggle this week. Shares of Google parent Alphabet fell sharply after a bearish analyst note, while Netflix stock also struggled, despite an ambitious price-target hike. In fact, AAPL's drop put pressure on two of the iPhone maker's suppliers. On the other hand, shares of Amazon managed a strong finish to the week thanks to news the company will buy Whole Foods for $13.7 billion -- which may have benefited AMZN options traders. This M&A activity sent shock waves throughout Wall Street, with most grocery stocks -- including Dow component Wal-Mart and Kroger stock -- selling off on the news.  

Nike Stock Gets Crushed

Speaking of Dow stocks, Nike had an awful week, after the company announced a major restructuring effort. Additional losses ensued due to an analyst downgrade the following morning, and that's not even mentioning an ongoing EU probe. Fellow blue chip General Electric also made headlines, thanks to news of a CEO change. Meanwhile, another Dow stock provided some big gains for options traders. 

Looking at some other high-profile names, Tesla stock received one of its most bullish analyst predictions yet, while semiconductor stocks Nvidia, Micron, and AMD stayed relevant, as well. Traders also digested some major moves from biotechs, including one drug stock's rare feat -- though disappointing drug news pressured Merck stock lower. 

Fed Speeches on Tap Next Week

A number of stocks remain on our radar going forward, including two airline stocks for bulls -- one of which already provided big gains for options traders. Goodyear Tire & Rubber is another name to watch, but you'll probably find these two small-cap stocks more exciting. In the meantime, investors will be keeping a close eye on several upcoming speeches from regional Fed presidents.