Earnings Send Dow Jones Industrial Average, S&P to Higher Highs

Valeant Hits Back; Plus, Today's Jaw-Dropping Tech IPO

Jul 14, 2016 at 4:27 PM
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The Dow Jones Industrial Average (DJIA) surged triple digits, securing its fifth win in a row, as well as record intraday and closing highs. The broader S&P 500 Index (SPX) also hit an all-time high, as a solid start to earnings season fueled momentum in stocks. Adding to the fire was the Bank of England (BoE), which -- despite unexpectedly leaving interest rates as is -- hinted that it will loosen monetary policy at its August meeting.

On the data front, weekly jobless claims came in below estimates, while the producer price index (PPI) rose more than forecast in June. And on a busy day for central bank speeches, Kansas City Fed President Esther George once again described the U.S. economy as "relatively resilient."


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

The Dow Jones Industrial Average (DJIA - 18,506.41) shot 134.3 points, or 0.7% higher, and touched a record 18,537.57 at its intraday peak. Twenty-six of the 30 blue-chip stocks ended in the green, with Goldman Sachs Group Inc (NYSE:GS) the top performer, up 2.9%. UnitedHealth Group Inc (NYSE:UNH) was the worst off of the four losers, slipping nearly 0.5%.

The S&P 500 Index (SPX - 2,163.75) tacked on 11.3 points, or 0.5%, for its highest close ever. The Nasdaq Composite (COMP - 5,034.06) settled at its loftiest perch of 2016, adding 28.3 points, or 0.6%.

The CBOE Volatility Index (VIX - 12.82) dipped 0.2 point, or 1.7%, and finished at its lowest mark since August.

Indexes closing summary July 14

NYSE and NASDAQ stats July 14

5 Items on Our Radar Today: 

  1. In addition for calling for patience on interest rate hikes, Atlanta Fed President Dennis Lockhart said the upcoming presidential election may be impacting both corporate and personal spending. "I'm prepared to believe that this very unusual election season, with the candidates who have emerged and the uncertainty associated with what will happen, is influencing businesses to some extent on the margin in some of their decisions, and perhaps households as well, in big-ticket decisions," Lockhart explained. (Bloomberg)
  2. Shortly after BlackRock, Inc. (NYSE:BLK) reported a 3.7% drop in quarterly profit, CEO Larry Fink expressed concerns over the stock market. "I don't think we should be at new highs," he said -- adding that retail investors have been "pulling money out" of mutual funds since the "Brexit" vote results last month. (CNNMoney)
  3. Traders took notice as Monsanto Company (NYSE:MON) was thrust back in the M&A spotlight.
  4. The latest streaming deal sending Twitter Inc (NYSE:TWTR) higher.
  5. While Tesla Motors, Inc. (NASDAQ:TSLA) struggled, this China-based rival sizzled on a glowing sales outlook.


Quarterly Earnings July 14

Unusual Options Activity July 14
Data courtesy of
Trade-Alert

Commodities:

Crude oil regained some footing amid a broad-market rally, and was further bolstered by the dollar, which weakened on the BoE's surprise rate decision. August-dated crude futures gained 93 cents, or 2.1%, to close at $45.68 per barrel.

On the flip side, the BoE decision not to lower rates hit gold, while the precious metal's safe-haven appeal diminished amid strong gains in stocks. By day's end, gold for August delivery was down $11.40, or 0.9%, at $1,332.20 per ounce.

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