M&A Buzz Boosts Dow Jones Industrial Average; Tech Stocks Outperform

3 Reasons to Consider Apple Options Right Now

Oct 24, 2016 at 4:25 PM
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The Dow Jones Industrial Average (DJIA) spent the day higher, as stocks reacted to multiple M&A announcements. In addition, investors digested a handful of speeches from Fed officials, including one from Chicago Fed President Charles Evans, who -- in the wake of earlier comments on interest rates from St. Louis Fed President James Bullard -- said that "undershooting the unemployment rate (and) overshooting the inflation target" could be required in order for the Federal Reserve to hit its inflation goal "sooner rather than later." And while the Dow and S&P 500 Index (SPX) closed with solid gains, tech stocks stole the show, with the Nasdaq Composite (COMP) rallying 1%.

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

The Dow Jones Industrial Average (DJIA - 18,223.03) gained 77.3 points, or 0.4%. Of the 21 Dow winners, Microsoft Corporation (NASDAQ:MSFT) ended with the biggest gains, finishing up 2.3%. Merck & Co., Inc. (NYSE:MRK) paced the the nine Dow decliners, settling down 0.7%.

The S&P 500 Index (SPX – 2,151.33) rose 10.2 points, or 0.5%, while the Nasdaq Composite (COMP – 5,309.83) added 52.4 points, or 1%.

The CBOE Volatility Index (VIX – 13.02) lost 0.3 point, or 2.4%, to close at its lowest mark since Oct. 6.

Closing Indexes Summary October 24
NYSE and Nasdaq Stats October 24



5 Items on Our Radar Today

  1. Scottrade Financial Services Inc. will be purchased by TD Ameritrade Holding Corp. (NASDAQ:AMTD) and Toronto-Dominion Bank (NYSE:TD) -- AMTD's biggest shareholder -- in a cash-and-stock deal valued at $4 billion. Pending regulatory approval, the deal is expected to close by next September, and will generate an estimated $450 million in annual savings. (Bloomberg)
  2. Outdoor retailer REI announced that it will be closing for Black Friday for the second year in a row, encouraging customers and employees to #OptOutside instead of pacing the aisles on the famous shopping holiday. (Fortune)
  3. What sent T-Mobile US Inc (NASDAQ:TMUS) to an all-time high.
  4. One streaming service that got a vote of confidence ahead of earnings.
  5. The bearish brokerage note that sent drugmaker Ariad Pharmaceuticals, Inc. (NASDAQ:ARIA) spiraling.

Corporate Earnings october 24
Unusual Options Activity October 24
Data courtesy of Trade-Alert

Commodities:

December-dated crude futures fell 33 cents, or 0.7%, to $50.52 per barrel, after Iraq indicated it would not participate in an Organization of Petroleum Exporting Countries' (OPEC) output cap. 

December-dated gold futures fell $4, or 0.3%, to $1,263.70 per ounce, after the U.S. dollar hit an eight-month high in the wake of this morning's upbeat factory data.

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