Dow Jones Industrial Average Adds 213, S&P Snaps Losing Streak

France has declared a national day of mourning for tomorrow

Alex Eppstein
Jan 7, 2015 at 4:18 PM
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The Dow Jones Industrial Average (INDEXDJX:DJI) rebounded sharply after two consecutive days of steep losses, powered by gains in crude and an encouraging jobs report. The Dow also caught a small tailwind from the latest Federal Open Market Committee (FOMC) meeting minutes to end on an advance of nearly 213 points. The S&P 500 Index (SPX) and Nasdaq Composite (COMP) ended sharply higher, as well -- snapping their five-session losing streaks -- and the risk-on attitude sent the CBOE Volatility Index (VIX) backpedaling south of 20.

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

  • The trader who shelled out millions for a downside bet on Advanced Micro Devices, Inc. (NASDAQ:AMD).
  • A closer look at this well-timed wager on Dick's Sporting Goods Inc (NYSE:DKS).
  • How Ebola is impacting these 3 stocks.
  • Plus ... The Fed chimes in on interest rates, France responds to terrorist attacks, and a look at the Consumer Electronics Show (CES).

The Dow Jones Industrial Average (DJI - 17,584.52) spent the entire session north of breakeven, and snapped its two-day losing streak, adding 212.9 points, or 1.2%. Twenty-seven of the Dow's 30 components ended higher, led by Home Depot Inc's (NYSE:HD) 3.4% advance. International Business Machines Corp. (NYSE:IBM) and Verizon Communications Inc. (NYSE:VZ) both shed 0.7%, and Chevron Corporation (NYSE:CVX) rounded out the trio of losers with a fractional dip.

The S&P 500 Index (SPX - 2,025.90) and Nasdaq Composite (COMP - 4,650.47) ended their week-long swoons. The SPX gained 23.3 points, or 1.2%, while the COMP tacked on 57.7 points, or 1.3%.

The CBOE Volatility Index (VIX - 19.31) retreated 1.8 points, or 8.6%, to close back below 20.

CLOSING SUMMARY – INDICES

CLOSING SUMMARY – NYSE AND NASDAQ

5 Items on Our Radar Today:

  1. According to the FOMC's latest meeting minutes, the central bank is inching closer to a rate hike amid changing economic conditions -- and with little regard for low inflation. However, after last month's policy meeting, Fed Chair Janet Yellen clarified that the central bank will wait at least two more meetings before upping interest rates from near-zero levels. The FOMC also believes low energy prices could be a boon to the economy, with the main domestic threat being a global recession. (CNBC)
  2. France upped its terror threat level and declared Thursday a national day of mourning, following a deadly attack on satirical French newspaper Charlie Hebdo. The FBI is assisting local law enforcement agencies in an attempt to apprehend the attackers, who remain on the loose. (NBC News)
  3. A pair of potential contrarian plays that made a splash at CES.
  4. Herbalife Ltd. (NYSE:HLF) had a volatile day, in the wake of a searing comparison from Bill Ackman.
  5. Traders responded positively as analysts weighed in on these three stocks.
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 snapped a four-session losing streak, after the Energy Information Administration reported a surprise weekly decline in crude stockpiles. When all was said and done, February-dated oil had added $0.72, or 1.5%, to settle at $48.65 per barrel.

Gold's three-day winning streak came to an end, as traders assumed a risk-on attitude amid a broad-market rally. By the close, the February-dated contract was down $8.70, or 0.7%, to settle at $1,210.70 per ounce.


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