Dow Jones Industrial Average Brings 20,000 Into Focus Ahead of Fed

The $1.35 Million Bet Against the U.S. Dollar

Josh Selway
Dec 13, 2016 at 4:28 PM
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The Dow Jones Industrial Average (DJIA) jumped out of the gate and came within 47 points of the 20,000 mark at its intraday peak, on its way to yet another all-time closing high and a seventh straight win. The S&P 500 Index (SPX) and Nasdaq Composite (COMP) gained alongside the Dow -- thanks in part to a big day for tech shares -- as stocks continued to rise amid the so-called "Trump rally." Of course, all of this comes ahead of tomorrow's Federal Open Market Committee (FOMC) policy announcement, when the central bank is expected to increase interest rates for the first time in a year. 

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

The Dow Jones Industrial Average (DJIA - 19,911.21) traded in positive territory the entire session, adding 114.8 points, or 0.6%. The Dow's 23 advancers were led by Intel Corporation (NASDAQ:INTC), which gained 2.3% amid the tech rally. DuPont (NYSE:DD) shed 0.5% to pace the seven losers. 

The S&P 500 Index (SPX - 2,271.72) rallied 14.8 points, or 0.7%. The Nasdaq Composite (COMP - 5,463.83) rose 51.3 points, or 1%. 

The CBOE Volatility Index (VIX - 12.72) also ended above breakeven, adding 0.1 point, or 0.6%. 

indexes closing summary dec 13
nyse and nasdaq stats dec 13

5 Items on Our Radar Today

  1. The U.S. Transportation Department has proposed a rule that would require all new light-duty vehicles to have vehicle-to-vehicle -- dubbed V2V -- communication technology. This would allow vehicles to essentially communicate with not only one another, but infrastructure, such as traffic lights. (CNET)
  2. President-elect Donald Trump has nominated former Texas Governor Rick Perry to lead the Energy Department. Perry is known as an advocate of fossil fuels, and actually proposed abolishing the same department when he ran for president in 2012.  (The Washington Post)
  3. 3 bank stocks in analysts' crosshairs ahead of the Fed decision. 
  4. The executive exodus that sent shares of Valeant Pharmaceuticals Intl Inc (NYSE:VRX) higher. 
  5. Why options traders may regret betting against this outperforming energy stock.

quarterly earnings dec 13

unusual options activity dec 13
Data courtesy of Trade-Alert

Commodities:

Crude oil futures closed higher yet again, as oil prices held near their highest levels since July 2015. January-dated crude futures added 15 cents, or 0.3%, to close at $52.98 per barrel. 

Meanwhile, the price of gold continued to fall ahead of tomorrow's expected interest-rate hike. By the close, February gold futures were off $6.80, or 0.6%, at $1,159 per ounce -- the lowest settlement in 10 months.

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