Dow Jones Industrial Average Skyrockets; 'Fear Gauge' Erases Weekly Gain

American Express Company (AXP) and General Electric Company (GE) are leading the blue chips higher

Oct 17, 2014 at 1:04 PM
facebook twitter linkedin

The Dow Jones Industrial Average (INDEXDJX:DJI) has explored a near 750-point range this week, but is poised to snap its six-session losing streak today. In early afternoon action, the blue-chip barometer is 302 points, or 1.9%, higher at 16,419.46 -- and is on pace for its best session of the year -- with help from a stellar earnings report from General Electric Company (NYSE:GE). In fact, all 30 Dow components are in the black right now, led by a 4.4% gain for American Express Company (NYSE:AXP) after its own quarterly earnings results. Outside of the earnings confessional, Wall Street is cheering an upbeat report on new-home construction, an unexpected surge in consumer confidence, and a rebound in crude oil prices, while digesting the latest comments from Fed Chair Janet Yellen.

Elsewhere, the S&P 500 Index (SPX) has added 30.5 points, or 1.6%, while the Nasdaq Composite (COMP) has rebounded 64.6 points, or 1.5%, looking to erase its weekly deficit. As traders adopt a risk-on attitude, the CBOE Volatility Index (VIX) has dropped 4.5 points, or 17.7%, negating its week-to-date gains. The market's "fear gauge" has explored a range of more than 10 points this week, and tagged a fresh two-year high of 31.06 on Wednesday.

On the New York Stock Exchange, 828 equities are trading lower, compared to 2,206 advancing, resulting in an advance/decline ratio of 2.66. Likewise, 34 stocks have tagged new annual highs, compared to 11 in annual-low terrain. ITT Educational Services, Inc. (NYSE:ESI) is the top performer on the Big Board, up 86% at $10.38, after reporting encouraging enrollment figures.

It's a similar setup on the Nasdaq, with 1,524 stocks trading higher, compared to 973 in the red, resulting in an advance/decline ratio of 1.56. Twenty-three securities have notched new highs, compared to 22 exploring new lows. The best performer on the index so far is Westmoreland Coal Company (NASDAQ:WLB), which has added 21.7% to flirt with $37.30, as traders applaud M&A news.


Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released! 



Special Offers from Schaeffer's Trading Partners