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Dow Jones Industrial Average Hits Record High; S&P 500 Follows Suit

Durable goods orders posted their biggest monthly gain ever

by 8/26/2014 4:19:51 PM
Stocks quoted in this article:

The Dow Jones Industrial Average (DJI) spent the whole session above the 17,100 level, helped by a raft of strong economic data -- including a banner month for durable goods. In fact, just before noon ET, the Dow touched a record high of 17,153.80. Not to be outdone, the S&P 500 Index (SPX) notched its own all-time high of 2,005.04 -- and closed above 2,000 for the first time ever -- while the Nasdaq Composite (COMP) hit a 14-year peak of 4,575.59.

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

  • These options traders are confident that Lululemon Athletica inc. (NASDAQ:LULU) will break out following next month's earnings report.
  • Soaring Arrowhead Research Corp (NASDAQ:ARWR) got the attention of these option bulls.
  • Short-term speculators rushed Amazon.com, Inc.'s (NASDAQ:AMZN) options pits to bet on an end-of-week rally.
  • Plus ... Durable goods heat up, potential bad news for flyers, and a breakdown of trader sentiment on a pair of investment banks.
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The Dow Jones Industrial Average (DJI - 17,106.70) added 29.8 points, or 0.2%, to close above 17,100 for the first time since July 22. Seventeen of the Dow's 30 components ended in the green, led by UnitedHealth Group Inc. (NYSE:UNH), Pfizer Inc. (NYSE:PFE), and International Business Machines Corp. (NYSE:IBM), which each tacked on 1.0%. On the flip side, General Electric Company (NYSE:GE) and Nike Inc (NYSE:NKE) both lost 0.7%, pacing the blue-chip decliners.

The S&P 500 Index (SPX - 2,000.02) managed to close above the 2,000 level (barely) for the first time in history, ending with a gain of 2.1 points, or 0.1%. The Nasdaq Composite (COMP - 4,570.64) tacked on 13.3 points, or 0.3%, to best the other two indexes on a percentage basis.

The CBOE Volatility Index (VIX - 11.63) resumed its downtrend, giving up 0.07 point, or 0.6%, for its fifth straight close below 12.

CLOSING SUMMARY  INDICES

CLOSING SUMMARY  NYSE AND NASDAQ

5 Items on Our Radar Today:

  1. Strong international demand for aircraft helped durable goods orders pop 22.6% in July from the previous month, the Commerce Department said. It was the largest single-month gain ever for the data series, and easily bested economists' expectations of 7.5% growth. (Reuters, via CNBC)
  2. American Airlines Group Inc (NASDAQ:AAL) pulled its fares from websites owned by Orbitz Worldwide, Inc. (NYSE:OWW), due to an impasse in negotiations. The change is effective immediately for all future AAL flights, while those of AAL-owned US Airways will follow suit on Sept. 1. OWW tanked on the news, finishing 4.6% lower. (Chicago Tribune)
  3. Find out how options traders are positioned on these two major financial firms.
  4. Among Tuesday's biggest gainers was Wall Street rookie Mobileye NV (NYSE:MBLY).
  5. Which Dow component's front-month options can be had for a relative bargain?
EARNINGS

For a look at today's options movers and commodities activity, head to page 2.

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