China Surprise Sparks Big Day for Dow Jones Industrial Average

Crude headed higher, while gold fell back below the $1,200 mark

Apr 20, 2015 at 4:20 PM
facebook twitter linkedin

After concerns from China sent the Dow Jones Industrial Average (DJIA) to a nearly 300-point loss on Friday, stimulus news from the mainland helped whet investors' risk-on appetite today -- with the blue-chip barometer notching a triple-digit win. Adding to the bullish buzz were relatively subdued comments from New York Fed President William Dudley, as well as a strong start to the week's busy earnings docket. Meanwhile, the day's burst of buying power brought round-number levels back in play, with the S&P 500 Index (SPX) edging north of 2,100, while the Nasdaq Composite (COMP) stopped just shy of the 5,000 mark.

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

The Dow Jones Industrial Average (DJIA - 18,034.93) was up almost 266 points at its session high, before settling 208.6 points, or 1.2%, higher. Twenty-six of the Dow's 30 components gained ground, led by a 3.4% pre-earnings pop for IBM (NYSE:IBM). GE paced the four decliners with its 0.8% loss.

Likewise, the S&P 500 Index (SPX - 2,100.40) spent the entire session in the green, adding 19.2 points, or 0.9%. The Nasdaq Composite (COMP - 4,994.60), meanwhile, outperformed its peers, tacking on 62.8 points, or 1.3%.

In the wake of last Friday's spike, the CBOE Volatility Index (VIX - 13.30) shed 0.6 point, or 4.3% -- and closed back below its 10- and 20-day moving averages.



5 Items on Our Radar Today:

  1. On Wednesday, Comcast Corporation (NASDAQ:CMCSA) and Time Warner Cable Inc (NYSE:TWC) are scheduled to meet with the Department of Justice (DoJ) to go over the broadcast giants' proposed merger. Rumors are circulating that DoJ antitrust attorneys will recommend blocking the roughly $40 billion deal for the sake of consumers. (Bloomberg)
  2. Less than two weeks after announcing the sale of the bulk of its real estate portfolio, GE is reportedly contemplating unloading its commercial lending and leasing division -- worth roughly $74 billion -- to Wells Fargo & Co (NYSE:WFC). (Reuters)
  3. It's going to be a big week on the earnings front, and this morning, Halliburton Company (NYSE:HAL), Hasbro, Inc. (NASDAQ:HAS), and Morgan Stanley (NYSE:MS) started things off on a strong note. (Bloomberg)
  4. A slight breather for this streaming giant had option bears pouncing.
  5. Option bulls responded favorably to Groupon Inc's (NASDAQ:GRPN) $360 million sale.

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




Crude oil pared a portion of Friday's losses, amid surprise stimulus moves out of China and reports of declining stockpiles at the delivery point for U.S. crude. By the close, crude for May delivery was up 64 cents, or 1.2%, at $56.38 per barrel.

A strengthening dollar sent gold tumbling below the highly watched $1,200 mark. At session's end, June-dated gold was down $9.40, or 0.8%, at $1,193.70 per ounce.


If you are not making money with options, you aren’t buying options like this…

There is no options strategy that more perfectly approaches trading the fastest moving and most volatile stocks available in the marketplace than this one. In fact, there is no strategy that better utilizes put options for optimal returns and a real trading edge over other traders in the exact same market. New options traders fail out at an incredible rate without proper trade research, execution timing, and option picking. Capitalize on Schaeffer’s 100+ years of options trading excellence with the most coveted product launch in company history. Don't waste another second... join us right now before the next round of trades are released!



Special Offers from Schaeffer's Trading Partners