Dow Jones Industrial Average Topples 18K

Dow Hits 18K; Plus, 3 Oil Stocks for Frugal Option Buyers

by Josh Selway

Published on Apr 18, 2016 at 4:30 PM
Updated on Apr 18, 2016 at 4:34 PM

The Dow Jones Industrial Average (DJIA) overcame early oil-induced losses to topple the 18,000 level for the first time since July. A huge day from Walt Disney Co (NYSE:DIS) helped to push the Dow higher, even as crude futures fell following Sunday's unsuccessful meeting between major oil producers in Doha, Qatar. Now at nine-month highs, the Dow could see some big moves tomorrow, with a number of blue chips on tap to report earnings

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

The Dow Jones Industrial Average (DJIA - 18,004.16) added 106.70 points, or 0.6%, for its first close above 18,000 since July 20. Twenty-seven of the 30 Dow components closed higher, led by DIS' 2.9% pop. The three losers were led by AAPL's 2.2% decline. 

The S&P 500 Index (SPX - 2,094.34) picked up 13.6 points, or 0.7%. Meanwhile, the Nasdaq Composite (COMP - 4,960.02) ended the day 21.8 points, or 0.4%, higher. 

The CBOE Volatility Index (VIX - 13.35) closed down 0.3 point, or 2%. 

Indexes closing summary April 18


NYSE and NASDAQ stats April 18


5 Items on Our Radar Today:

  1. Citi lowered its projections for the U.S. economy over the next two years, citing headwinds -- including a slow global economy and a noncommittal Fed -- that will last longer than expected. Specifically, Citi sees growth of 1.7% in 2016 and 2.1% in 2017.  (MarketWatch)
  2. Speaking of the Fed, New York Fed President William Dudley also offered up a cautious tone on the U.S. economy. In a Monday morning address, Dudley -- a voting member of the Federal Open Market Committee (FOMC) -- said future changes in interest rates will likely be gradual due to "significant uncertainties," and because "the headwinds to growth from the financial crisis have not fully abated." Meanwhile, Minnesota Fed President Neel Kashkari again called for reforms on the biggest U.S. banks. (CNBC; Reuters)
  3. The gold stock on Barclays' radar
  4. How Amazon.com, Inc. (NASDAQ:AMZN) options traders responded to the company's swipe at Netflix, Inc. (NASDAQ:NFLX)
  5. Why Hasbro, Inc.'s (NASDAQ:HAS) record-setting run may not be over.


Quarterly Earnings April 18


Unusual Options Activity April 18
Data courtesy of Trade-Alert

Commodities:

Crude futures nosedived after no output freeze was agreed upon yesterday. However, news that a workers' strike prompted Kuwait to slash its crude production by half helped oil prices come off their lows. At the close, crude dated for May delivery was down 58 cents, or 1.4%, at $39.78 per barrel. 

Concern that weakness in oil prices would spill over into the equities market led some traders to "safe haven" assets like gold. As such, June-dated gold eked out a daily win of 40 cents to end at $1,235 per ounce. 

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