Dow Jones Industrial Average Adds 238 on Oil Surge, Bargain Hunting

One Drugmaker's Soul-Crushing Day

Nov 16, 2015 at 4:26 PM
facebook twitter linkedin


The Dow Jones Industrial Average (DJIA) got off to a shaky start this morning, with the Paris terrorist attacks keeping some traders on the sidelines. However, the wobbly footing didn't last long, as bargain hunting and an energy rebound stoked the bullish flames. After wrapping up its worst week in eight months, black gold shot higher as France issued airstrikes on oil-rich Syria, and amid reports that a major oil cartel is scaling back production. By the close, Chevron Corporation (NYSE:CVX) and Exxon Mobil Corporation (NYSE:XOM) ushered the Dow to a triple-digit win, and the S&P 500 Index (SPX) and Nasdaq Composite (COMP) put dents in their month-to-date deficits.

Continue reading for more on today's market, including

The Dow Jones Industrial Average (DJIA - 17,483.01) settled at a session high, snapping its three-day losing streak. By the close, the blue-chip barometer was up 237.8 points, or 1.4%. Only Intel Corporation (NASDAQ:INTC) and Pfizer Inc. (NYSE:PFE) sat out the rally, dropping 0.03% and 0.3%, respectively. CVX and XOM led the advancers, gaining a respective 4.4% and 3.6%.

The S&P 500 Index (SPX - 2,053.19) fared even better, gaining 30.2 points, or 1.5%. The tech-heavy Nasdaq Composite (COMP - 4,984.62) spent the most time in the red, but ultimately advanced 56.7 points, or 1.2%.

The CBOE Volatility Index (VIX - 18.16) surrendered its short-lived foothold north of 20, dropping 1.9 points, or 9.6%.

151116recap1

15116recap2

5 Items on Our Radar Today:

  1. The U.S. and Russia should combine forces to battle "jihadist terrorism which is threatening the whole world," opined French President Francois Hollande. Meanwhile, as President Obama vowed to "degrade and ultimately destroy" ISIS without U.S. combat troops, a handful of U.S. governors vowed to turn away Syrian refugees. (Reuters; USA Today; MarketWatch)
  2. The Empire State manufacturing index moved from minus 11.4 in October to minus 10.7 in November, signaling a fourth straight month of contraction. (AP, via CNBC)
  3. Option traders are pricing in a relatively ambitious earnings reaction for HD.
  4. Warren Buffett explained why Berkshire Hathaway Inc. (NYSE:BRK.A) cut its stake in WMT ahead of earnings.
  5. 3 tech stocks that scored some early analyst love.


151116recap4


151116recap5

Commodities:

Crude enjoyed a rebound today, as France initiated airstrikes against oil-rich Syria, fueling concerns about supplies. Meanwhile, output from the Organization of the Petroleum Exporting Countries (OPEC) reportedly fell for a third straight month in October. Against this backdrop, December-dated oil bounced $1, or 2.5%, to end at $41.74 per barrel.

The Paris attacks sparked demand for tangible, "safe haven" assets, helping gold rebound from a five-year low. By the close, December-dated gold was $2.70, or 0.3%, higher at $1,083.60 an ounce -- the malleable metal's best session of the month.


A Schaeffer's exclusive!

The Expert's Guide

Access your FREE trading earnings guide for Q3 before it's too late!


  
 
Special Offers from Schaeffer's Trading Partners