Blue-Chip Earnings Send Dow Jones Industrial Average to a 216-Point Gain

3M Co and Caterpillar Inc led the DJI higher thanks to well-received earnings reports

by Karee Venema

Published on Oct 23, 2014 at 4:25 PM
Updated on Apr 20, 2015 at 5:32 PM

It was quite a day for the Dow Jones Industrial Average (DJI), which was up more than 216 points at the close -- easily erasing yesterday's loss -- thanks to strong quarterly earnings reactions for 3M Co (NYSE:MMM) and Caterpillar Inc. (NYSE:CAT). This burst of buying power was witnessed elsewhere, as well, with the S&P 500 Index (SPX) and Nasdaq Composite adding 1.2% and 1.6%, respectively. What's more, all three major market indexes are on pace to snap their four-week losing streaks.

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

The Dow Jones Industrial Average (DJI - 16,677.90) took off right at the open, and remained comfortably higher throughout the day. At its session high, the blue-chip barometer was up more than 300 points, before paring these gains to 216.6 points, or 1.3%, by the close. Of the DJI's 30 components, 26 finished in the green, led by CAT's 5% rally, while AT&T Inc.'s (NYSE:T) 2.4% drop paced the four decliners.

In similar fashion, the S&P 500 Index (SPX - 1,950.82) spent the entire session in the green, and settled up 23.7 points, or 1.2%. The Nasdaq Composite (COMP - 4,452.79) put in the best performance of its peers, tacking on 70 points, or 1.6%.

Amid today's broad-market rally, the CBOE Volatility Index (VIX - 16.53) gave back 1.3 points, or 7.5%.

CLOSING SUMMARY – INDICES

CLOSING SUMMARY – NYSE AND NASDAQ

5 Items on Our Radar Today:

  1. MMM put in a strong showing against its fellow Dow components, after reporting a better-than-expected third-quarter profit of $1.98 per share. Sales, meanwhile, arrived at $8.1 billion -- slightly below the consensus estimate of $8.2 billion. The maker of Post-It notes also narrowed its full-year per-share profit forecast to $7.40 to $7.50 from its previous range of $7.30 to $7.55. (Reuters)
  2. In the wake of strong purchasing managers index (PMI) data from overseas, a similar report for the U.S. showed Markit's flash reading fell to a three-month low in October. Elsewhere, weekly jobless claims edged higher last week -- but remained near 14-year-lows, and below the all-important 300,000 threshold. (MarketWatch; FOX Business)
  3. KING took a bounce -- but was it of the dead-cat variety?
  4. 3D Systems Corporation (NYSE:DDD) got smacked with a round of bearish brokerage attention, following its nearly 16% plunge.
  5. Blue chips weren't the only ones getting a post-earnings boost, with Nokia Corporation (ADR) (NYSE:NOK) and Tractor Supply Company (NASDAQ:TSCO) rallying in the wake of their results.
EARNINGS

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

STOCKS – NOTABLE CALL ACTIVITY

STOCKS – NOTABLE PUT ACTIVITY

Commodities:

Crude oil turned higher today, amid reports that Saudi Arabia is cutting production. By the close, the December-dated contract was up $1.57, or 1.9%, to $82.09 per barrel.

Gold tumbled amid today's risk-on rally, with gold for December delivery giving back $16.40, or 1.3%, to settle at $1,229.10 per ounce.


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