Dow Jones Industrial Average Soars 191; S&P, Nasdaq Notch New Highs

4 Biotechs That Could Move Big Next Week

by Alex Eppstein

Published on Aug 5, 2016 at 4:26 PM

The Dow Jones Industrial Average (DJIA) took off this morning on a stronger-than-expected nonfarm payrolls report and never looked back. Specifically, the Dow finished with a triple-digit win, easily erasing its weekly deficit, with blue-chip stock Merck & Co., Inc. (NYSE:MRK) leading the way higher thanks this drugmaker's misfortune. As usual, with stocks and rate-hike expectations soaring, safe-haven gold tumbled -- suffering its worst day since late May. Meanwhile, the S&P 500 Index (SPX) and Nasdaq Composite (COMP) each hit record highs thanks to the jobs report.


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

The Dow Jones Industrial Average (DJIA - 18,543.53) spent the entire day in the green, finishing up 191.5 points, or 1%. MRK paced the 27 winning Dow components, adding 10.4%, while Verizon Communications Inc. (NYSE:VZ), Procter & Gamble Co (NYSE:PG), and The Coca-Cola Co (NYSE:KO) each finished slightly lower. On a weekly basis, the Dow added 0.6%.

The S&P 500 Index (SPX - 2,182.87) popped 18.6 points, or 0.9%, to close at an all-time high. The Nasdaq Composite (COMP - 5,221.12) jumped 54.9 points, or 1.1%, for its highest settlement price ever. On a week-over-week basis, the SPX and COMP advanced 0.4% and 1.1%, respectively.

The CBOE Volatility Index (VIX - 11.39) fell 1 point, or 8.3%, and tagged an annual closing low. For the week, the market's "fear gauge" shed 4%.

Closing Indexes Summary August 5

NYSE and Nasdaq Volume August 5

5 Items on Our Radar Today:

  1. According to the Labor Department, the U.S. economy added 255,000 jobs in July, far more than expected. Also, the unemployment rate held steady at 4.9%, while average hourly earnings rose by eight cents. (Reuters)
  2. With back-to-school season in full swing, 12 states -- including Florida, Ohio, and Texas -- will allow shoppers to buy school supplies and clothing this weekend without charging sales tax. (USA Today)
  3. 4 solar stocks losing the confidence of Wall Street.
  4. The stock that ruined Oprah Winfrey's day.
  5. Ahead of the Olympics, bearish bets have heated up on the iShares MSCI Brazil Index (ETF) (EWZ).


Corporate Earnings August 5

Unusual Options Activity August 5
Data courtesy of
Trade-Alert

Commodities:

A surging dollar weighed on crude oil today, with pressure exacerbated by another weekly rise in the number of operational rigs in U.S. oil fields. At the close, September-dated crude was down 13 cents, or 0.3%, at $41.80 per barrel. On a weekly basis, liquid gold tacked on 0.5%.

The dollar also dealt a blow to gold, while a red-hot stock market dimmed the appeal of "safe havens." Specifically, gold for December delivery dove $23, or 1.7%, to settle at $1,344.40 per ounce -- its worst single-day plunge in 10 weeks. On a week-over-week basis, gold declined 1%.

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