Dow Jones Industrial Average, S&P Boom on Crude

The Sentiment Signal Not Seen Since March 2009

Jan 14, 2016 at 4:21 PM
facebook X logo linkedin

The Dow Jones Industrial Average (DJIA) snapped back from a brutal Wednesday, tacking on triple digits on the back of an energy rally that sent components Chevron Corporation (NYSE:CVX) and Exxon Mobil Corporation (NYSE:XOM) sharply higher. Also stoking traders' risk-on appetite was an earnings-induced rally from blue chip JPMorgan Chase & Co. (NYSE:JPM), as well as dovish remarks from St. Louis Fed President James Bullard. Meanwhile, the broader S&P 500 Index (SPX) clawed out of correction territory (albeit barely), and the small-cap-rich Russell 2000 Index (RUT) also bounced -- but not before plumbing two-year lows and briefly taking out the key 1,000 level.

Continue reading for more on today's market, including

The Dow Jones Industrial Average (DJIA - 16,379.05) surged 227.6 points, or 1.4%, as 28 of 30 blue chips ended higher. Leading the way were energy stocks CVX and XOM, up 5.1% and 4.6%, respectively. Only Nike Inc (NYSE:NKE) and Home Depot Inc (NYSE:HD) settled in the red, slipping 0.5% and 1.5%, respectively.

The S&P 500 Index (SPX - 1,921.84) popped 31.6 points, or 1.7% -- and out of correction territory. The Nasdaq Composite (COMP - 4,615.00) added nearly 89 points, or 2%, to outpace its peers.
The CBOE Volatility Index (VIX - 23.95) slid 1.3 points, or 5%, but closed atop its 10-day moving average for the 10th straight session.


5 Items on Our Radar Today:

  1. U.S. jobless claims unexpectedly increased last week to a seasonally adjusted 284,000, but remained south of the crucial 300,000 mark for a 45th straight week -- the longest streak in more than 40 years. Meanwhile, import prices fell for a sixth consecutive month in December, resulting in a full-year drop of 8.2% -- the biggest decrease since 2008. (Reuters, via CNBC

  2. St. Louis Fed President James Bullard warned that the "worrisome" decline in inflation expectations may prompt the central bank to rethink its timetable on future rate hikes. "For me, inflation expectations are a key factor and if they continue to decline I would put increasing weight on that," he said. (Reuters)

  3. Two biotechs catching the attention of put players.

  4. Why SolarCity Corp (NASDAQ:SCTY) could be in trouble, on and off the charts.

  5. Schaeffer's contributor Adam Warner pays tribute to his father with these four options trading lessons.


Data courtesy of Trade-Alert


Crude prices bounced back amid short-covering activity, and in the process snapped a streak of eight straight daily losses. This, despite speculation that sanctions against Iran will likely be lifted, potentially exacerbating a global supply glut. By day's end, February-dated futures were up 72 cents, or 2.4%, at $31.20 per barrel.

Rebounds in oil and stocks weighed on gold, dimming the appeal for "safe haven" strategies. Gold for February delivery lost $13.50, or 1.2%, to settle at $1,073.60 per ounce -- its largest one-day decline in about a month.


Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI