Dow Jones Industrial Average Rolls to New High as Trump Rally Continues

This Bearish Signal Has Sounded Just Twice Since the Dot-Com Bubble

Dec 8, 2016 at 4:28 PM
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It was another big day for the Dow Jones Industrial Average (DJIA), as the blue-chip index extended its win streak to four days on the back of surging bank stocks. In fact, the Dow, S&P 500 Index (SPX), and Nasdaq Composite (COMP) all hit fresh record highs as the so-called Trump rally continued, with the latter two indexes grabbing their fifth straight win. With the Federal Reserve's December meeting less than a week away, traders this morning reacted to the European Central Bank's (ECB) latest stimulus decision, on top of a decline in weekly jobless claims. Rising oil prices -- which climbed back atop the critical $50 level -- only added to the bullish backdrop for stocks. 

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

The Dow Jones Industrial Average (DJIA - 19,614.81) gained 65.2 points, or 0.3%. Half of the Dow's 30 components finished higher, led by a 2.5% charge from Goldman Sachs Group Inc (NYSE:GS). Caterpillar Inc. (NYSE:CAT), United Technologies Corporation (NYSE:UTX), and Nike Inc (NYSE:NKE) all finished 1.1% lower to pace the 14 losers, while Cisco Systems, Inc. (NASDAQ:CSCO) closed flat. 

The S&P 500 Index (SPX - 2,246.19) closed with a 4.8-point, or 0.2%, win. The Nasdaq Composite (COMP - 5,417.36) picked up 23.6 points, or 0.4%. 

The CBOE Volatility Index (VIX - 12.64) also closed higher, adding 0.4 point, or 3.4%. 

Indexes closing summary December 8
Nyse and Nasdaq closing stats December 8

5 Items on Our Radar Today

  1. Japan-based video game company Nintendo is set to release its first-ever mobile game next week, called Super Mario Run. The game, which will be available on iPhones, will be free to download, but accessing the entire game will cost $9.99. (USA Today)
  2. President-elect Donald Trump continues to fill out his cabinet, nominating Oklahoma Attorney General Scott Pruitt to run the Environmental Protection Agency (EPA). Pruitt is known to be a fierce critic of climate regulation, and a strong supporter of the oil-and-gas industry.  (Reuters)
  3. The Apple Inc. (NASDAQ:AAPL) rumors that enticed Netflix, Inc. (NASDAQ:NFLX) option bulls. 
  4. How Amazon.com, Inc. (NASDAQ:AMZN) weekly options have been flying off the shelves.
  5. Famous short seller Citron Research called this company the "Philidor of the pharma industry," sending the shares tumbling. 

Quarterly earnings December 8

Unusual Options Activity December 8
Data courtesy of Trade-Alert

Commodities:

Oil prices snapped their two-day losing streak, climbing back atop the key $50 level ahead of a weekend meeting between the Organization of the Petroleum Exporting Countries (OPEC) and other major oil producers. January-dated crude futures added $1.07, or 2.2%, to close at $50.84 per barrel. 

Gold futures moved lower amid a strengthening U.S. dollar. Gold dated for February delivery gave back $5.10, or 0.4%, to close at $1,172.40 per ounce. 

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