Oil Sends Dow Jones Industrial Average, S&P, and Nasdaq to Record Highs

What It Means for Stocks When the Dow Transports Lead the Rally

Nov 21, 2016 at 4:26 PM
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The Dow Jones Industrial Average (DJIA) jumped out of the gate and never looked back, as stocks reacted to soaring oil prices and well-received comments from one Fed official. The Dow was joined by the S&P 500 Index (SPX) and Nasdaq Composite (COMP), with the three major U.S. benchmarks simultaneously settling at record closing highs for first time since Aug. 15. What's more, the Russell 2000 Index (RUT) extended its daily win streak to 12 -- the longest for the small-cap barometer since June 2003 -- while also closing at its highest perch to date. In fact, this is the first time the Dow, SPX, COMP, and RUT closed at all-time peaks on the same day since Dec. 31, 1999.

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

The Dow Jones Industrial Average (DJIA - 18,956.69) settled near its record intraday high of 18,960.76, up 88.8 points, or 0.5%. Twenty-four of the Dow's 30 components gained ground, led by DuPont's (NYSE:DD) 1.8% pop. 3M Co (NYSE:MMM) paced the decliners with its 0.8% analyst-induced drop.

The S&P 500 Index (SPX - 2,198.18) added 16.3 points, or 0.8%, while the Nasdaq Composite (COMP - 5,368.86) rose 47.4 points, or 0.9%. In intraday action, the SPX hit an all-time best of 2,198.70, while the COMP tagged a record peak of 5,369.83.

The CBOE Volatility Index (VIX - 12.42) shed 0.4 point, or 3.4%, to settle at its lowest level since Sept. 28.

Indexes closing summary November 21
NYSE and NASDAQ stats November 21

5 Items on Our Radar Today

  1. Oracle Corporation (NYSE:ORCL) announced it will buy Dyn, a DNS provider that was the victim of a massive data breach in late October. While the amount of the acquisition has not been disclosed, some are valuing it at roughly $600 million.  (USA Today)
  2. Canada said it will phase out using traditional coal power over the next 13 years. Just four provinces still use coal-powered electricity, with the elimination plan in place to meet greenhouse-gas reduction targets by 2030.  (MarketWatch)
  3. Why one brokerage firm said Apple Inc. (NASDAQ:AAPL) "lacks the courage to lead the next generation of innovation."
  4. These 2 "FANG" stocks soared on upbeat analyst attention.
  5. 3 retailers to watch ahead of earnings.

Quarterly Earnings November 21

Unusual Options Activity November 21
Data courtesy of Trade-Alert

Commodities:

Oil prices surged, after Russian President Vladimir Putin waxed optimistic that a production deal will likely be agreed upon at meeting among the Organization of the Petroleum Exporting Countries (OPEC) on Nov. 30, and signaled Russia's willingness to cooperate. At the close, the now-expired November-dated crude contract was up $1.12, or 2.5%, at $46.81 per barrel. Meanwhile, the new front-month January-dated crude contract settled $1.21, or 2.6%, higher at $47.57 per barrel.

Gold futures staged a modest rebound -- after closing at a nine-month low on Friday -- as the greenback took a breather from its recent rally. By session's end, gold for December delivery was up $1.10, or 0.1%, at $1,209.80 an ounce.

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