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

Oct 23, 2014 at 4:25 PM
facebook twitter linkedin

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%.



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.

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




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.


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