Dow Jones Industrial Average Nabs Fresh Record High; Nasdaq Declines

'FANG' Options Flash 'Buy'

Nov 23, 2016 at 4:23 PM
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The Dow Jones Industrial Average (DJIA) closed at a record high for a third straight session, as a positive earnings reaction for machinery maker Deere & Company (NYSE:DE) provided a big boost to Dow stock Caterpillar Inc. (NYSE:CAT). And while the S&P 500 Index (SPX) and Russell 2000 Index (RUT) also notched record closing highs -- with the latter bringing its win streak to 14, a 20-year best -- a sell-off in biotechs weighed on the Nasdaq Composite (COMP).

Stocks also reacted to a mixed round of economic data, which seemingly strengthened the case for a December rate hike. This was echoed in the release of the minutes from the Fed's November meeting, at which the majority of central bank officials agreed that a rate hike could come "relatively soon" -- a phrase used by Fed Chair Janet Yellen just last week. U.S. markets will be shuttered tomorrow for the Thanksgiving holiday, and will be closing at 1 p.m. ET on Friday.

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

The Dow Jones Industrial Average (DJIA - 19,083.18) hit a new all-time intraday best of 19,083.76, before settling up 59.3 points, or 0.3%. Nineteen of the Dow's 30 components closed higher, led by CAT's 2.7% gain. Microsoft Corporation (NASDAQ:MSFT) paced the 11 decliners with its 1.2% drop.

In a burst of last-minute buying, the S&P 500 Index (SPX - 2,204.72) swung higher to add 1.8 points, or 0.1%. The Nasdaq Composite (COMP - 5,380.68), meanwhile, gave back 5.7 points, or 0.1%.

The CBOE Volatility Index (VIX - 12.43) edged up 0.02 point, or 0.2%.

Indexes closing summary November 23
NYSE and NASDAQ stats November 23

5 Items on Our Radar Today

  1. Morgan Stanley weighed in on the recently approved merger of Elon Musk firms Tesla Motors Inc (NASDAQ:TSLA) and SolarCity Corp (NASDAQ:SCTY). The brokerage firm said the deal offers "zero value" to TSLA shareholders, and that Tesla's "bigger mission remains developing a sustainable transportation system." (MarketWatch)
  2. Donald Trump plans to nominate the first two females to his administration. Specifically, Trump picked South Carolina Governor Nikki Haley to be the U.N. Ambassador, and Betsy DeVos to be secretary of education. (Bloomberg)
  3. GoPro Inc (NASDAQ:GPRO) and Fitbit Inc (NYSE:FIT) options were hot amid a rally in small-cap stocks.
  4. The disappointing drug news that sent these 3 biotechs spiraling.
  5. 20 retail stocks to watch after Black Friday, courtesy of Schaeffer's Senior Quantitative Analyst Rocky White.

Quarterly Earnings November 23
Unusual Options Activity November 23

Data courtesy of Trade-Alert

Commodities:

Oil prices closed lower, as a rising dollar and a weekly rise in U.S. rig counts overshadowed a drop in domestic crude inventories for the week. January-dated crude futures settled down 7 cents, or 0.2%, at $47.96 per barrel.

Gold futures tumbled, as the U.S. Dollar Index (DXY) climbed to a fresh 13-year high. By the close, gold for December delivery was down $21.90, or 1.8%, at $1,189.30 an ounce -- the lowest settlement since February. Gold prices continued to decline after the Fed minutes were released.

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