Dow Jones Industrial Average Pares Losses; Microsoft Boosts Nasdaq

2 Stocks Squeezing Shorts; Plus, Big, Bullish Buyout Bets

Oct 21, 2016 at 4:28 PM
facebook twitter linkedin

The Dow Jones Industrial Average (DJIA) spent most of the day fighting back from early losses -- and even briefly turned higher -- struggling against the dollar's eight-month highs and downwardly revised guidance from Dow stock General Electric Company (NYSE:GE). However, earnings beats by fellow blue chips McDonald's Corporation (NYSE:MCD) and Microsoft Corporation (NASDAQ:MSFT) helped to ease the selling pressure, with the latter actually lifting the Nasdaq Composite (COMP) into the black. Elsewhere, San Francisco Fed President John Williams advocated for a "pace of gradual rate increases, preferably sooner rather than later," which reduces the risk of "excessive inflation, asset-market bubbles, and ultimately economic correction and recession."

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

The Dow Jones Industrial Average (DJIA - 18,145.71) lost 16.6 points, or 0.1%, after being down triple digits early in the day. MSFT led the nine Dow winners with a gain of 4.2%, while the 21 Dow losers were led by Verizon Communications Inc (NYSE:VZ), which lost 1.9%. Week-over-week, the Dow gained 0.04%.

The S&P 500 Index (SPX - 2,141.16) dropped fractionally, finishing down 0.2 point. For the week, the SPX gained 0.4%. The Nasdaq Composite (COMP - 5,257.40) gained 15.6 points for the day, or 0.3%, while notching a weekly win of 0.8%.

The CBOE Volatility Index (VIX - 13.34) fell 0.4 point, or 3%, for a weekly loss of 17.2%.

Closing Indexes Summary October 21
NYSE and Nasdaq Stats October 21

5 Items on Our Radar Today

  1. East Coast users of several major websites suffered downtime today, after infrastructure provider Dyn was the subject of a series of troubling cyber attacks. Websites affected included Twitter Inc (NYSE:TWTR), Reddit, Airbnb, Spotify, and others, with, Inc. (NASDAQ:AMZN) reporting similar issues. The FBI and U.S. Department of Homeland Security are currently investigating. (Reuters)
  2. McDonald's Corporation (NYSE:MCD) reported an earnings beat this morning, sending shares surging. Although year-over-year earnings were down, the fast food giant still came in ahead of analyst expectations. (CNBC)
  3. One natural gas company got a lift after discovering a huge new oil field.
  4. Can Visa Inc (NYSE:V) pull off an American Express-style earnings beat?
  5. Why now might be the time to invest in Yelp Inc (NYSE:YELP).

Corporate Earnings October 21
Unusual Options Activity October 21
Data courtesy of Trade-Alert


December-dated crude futures tacked on 22 cents, or 0.4%, to end at $50.85 per barrel. Russian comments indicating their cooperation with a proposed output freeze boosted black gold, while a stronger dollar and the eighth weekly jump in the active oil rig count tempered oil's gains. Crude oil gained 1% for the week, comparing most-active contracts, for its fifth consecutive weekly gain.

December-dated gold futures made fractional gains for the day, tacking on 20 cents, to end the week at $1,267.70 per ounce. Week-over-week, gold gained 1%, despite a stronger dollar.

Stay on top of overnight news & big morning movers. Sign up now for Schaeffer's Opening View.

Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released! 



Special Offers from Schaeffer's Trading Partners