Upbeat Earnings Lift Dow Jones Industrial Average

The Oil Signal Not Seen Since 2013

by Celeste Taylor

Published on Oct 18, 2016 at 4:24 PM

The Dow Jones Industrial Average (DJIA) spent the day in the black, helped by a number of strong earnings reports, including wins for blue-chip stocks UnitedHealth Group Inc (NYSE:UNH) and Goldman Sachs Group Inc (NYSE:GS). On the economic data front, the consumer price index (CPI) rose by 0.3% in September, in line with economists' inflation expectations. On a year-over-year basis, the CPI rose 1.5%, marking the biggest gain since 2014, and fueling expectations for a 2016 rate hike from the Fed.  

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

The Dow Jones Industrial Average (DJIA - 18,161.94) ended the day up 75.5 points, or 0.4%. Leading the 21 winners was UnitedHealth Group Inc (NYSE:UNH), with a gain of 6.9%. Meanwhile, the nine Dow losers were led by International Business Machines Corp. (NYSE:IBM), which lost 2.6% after earnings.

The S&P 500 Index (SPX - 2,139.60) also managed a win, gaining 13.1 points, or 0.6%, for the session. The Nasdaq Composite (COMP - 5,246.30) outperformed its peers, advancing 44 points, or 0.9%.

The CBOE Volatility Index (VIX - 15.28) lost 0.9 point, or 5.7%.

Closing Indexes Summary October 18
NYSe and Nasdaq Stats October 18
 

5 Items on Our Radar Today

  1. Harley-Davidson Inc (NYSE:HOG) rallied 8.9%, after the company reported earnings and said its Milwaukee-Eight engine bolstered U.S. sales. In addition, the motorcycle maker said it would be taking further measures -- namely, layoffs -- to cut costs. (Bloomberg)
  2.  A U.S. federal judge indicated that he will likely approve a $15 billion settlement for Volkswagen Group. The settlement, which would give owners of cars affected by Volkswagen emissions doctoring, will receive an official ruling by Friday, Oct. 25. (USA Today)
  3. Tesla Motors Inc (NASDAQ:TSLA) revved up ahead of tomorrow's mystery event.
  4. One blue-chip stock hit by analysts after reporting its 18th quarter of revenue decline.
  5. The travel stock that rallied nearly 50%.

Corporate Earnings October 18
Unusual Options Activity October 18
Data courtesy of Trade-Alert

Commodities:

November-dated crude futures gained 0.7%, or 35 cents, to end the day back above the $50 level, at $50.29 per barrel. Optimistic comments about a global production cut from an Organization of the Petroleum Exporting Countries (OPEC) official helped boost black gold.

December-dated gold futures gained $6.30, or 0.5%, to close at $1,262.90 an ounce. A weaker dollar lifted the precious metal.

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