The DJIA skyrocketed on solid earnings and economic data, as well as stimulus chatter from the ECB
After a few wishy-washy days, the Dow Jones Industrial Average (DJIA) finally made a decisive turn higher, skyrocketing out of the gate and never looking back. The bullish stars seemingly aligned today, as traders cheered powerhouse earnings from McDonald's Corporation (NYSE:MCD), encouraging economic data, and talk of a stimulus extension from European Central Bank (ECB) President Mario Draghi. Not to be outdone, the S&P 500 Index (SPX) joined in the celebration, and the Nasdaq Composite (COMP) even dodged another biotech bullet, with both indexes notching their highest closes since before the August sell-off.
Continue reading for more on today's market, including:
The Dow Jones Industrial Average (DJIA - 17,489.16) briefly peeked above 17,500 for the first time since Aug. 19, tacking on 320.6 points, or 1.9%, by the close. Just four Dow components ended lower, paced by American Express Company's (NYSE:AXP) post-earnings loss of 5.2%. MCD led the advancing majority, rallying 8.1% to hit a record high.
The S&P 500 Index (SPX - 2,052.51) jumped 33.6 points, or 1.7%, and is on pace to end the week atop its 20-week moving average for the first time since late July. Although healthcare stocks sat out the broader rally, the Nasdaq Composite (COMP - 4,920.05) managed a 79.9-point, or 1.7%, win.
The CBOE Volatility Index (VIX - 14.45) marched to its lowest close since Aug. 18, dropping 2.3 points, or 13.5%. The "fear gauge" is on pace for its fourth straight weekly loss.
5 Items on Our Radar Today:
- Existing home sales increased more than expected in September, according to the National Association of Realtors. The 4.7% increase brought resales to the second-highest monthly pace since early 2007. (Reuters, via CNBC)
- The four-week moving average of weekly jobless claims fell to the lowest rate in more than four decades, even as last week's claims inched higher. (Reuters)
- Yet another drugmaker found itself in trouble, as an FDA warning sent Relypsa Inc (NASDAQ:RLYP) tumbling.
- EBAY climbed after a third-quarter earnings beat, generating enthusiasm among analysts.
- Behold, the greatest pizza-delivery machine the world has ever seen?
Commodities:
Oil futures bounced back from a three-week low, as encouraging economic data and bargain-hunting trumped a stronger dollar. By the close, December-dated crude was up 18 cents, or 0.4%, at $45.38 per barrel.
On the other hand, a stronger greenback and a dovish tone from the ECB weighed on gold, pushing the December contract $1, or 0.1%, lower to $1,166.10 an ounce.