Dow Jones Industrial Average Just Misses 20,000; S&P, Nasdaq Snag New Highs

Time to Buy Puts On This 'FANG' Stock?

Jan 6, 2017 at 4:23 PM
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The Dow Jones Industrial Average (DJIA) began the day with a drop, as traders digested December's nonfarm payrolls report, which showed fewer jobs added than expected. The index soon turned higher, however, as focus shifted to the Fed, with several officials giving speeches throughout the day. Chicago Fed President Charles Evans, for one, expressed confidence in the current economy, indicating he sees two interest rate hikes before the end of this year, though "three is not going to be implausible." After rallying through midday, the Dow stalled out after tapping a fresh record peak less than half a point away from the highly anticipated 20,000 mark. Not to be outdone, the S&P 500 Index (SPX) and Nasdaq Composite (COMP) both snagged new record intraday highs, as well, as tech stocks rallied.
 
Continue reading for more on today's market, including:
 

The Dow Jones Industrial Average (DJIA - 19,963.80) added 64.5 points, or 0.3%, after peaking at an all-time high of 19,999.63. Nike Inc (NYSE:NKE) led 20 of the 30 components higher on a 1.6% gain. Verizon Communications Inc. (NYSE:VZ) tracked the losers, shedding 1.5%. For the week, the DJIA tacked on just over 1%. 

The S&P 500 Index (SPX - 2,276.98) climbed 8 points, or 0.4%, after peaking at 2,282.10, and added 1.7% on the week. The tech-heavy Nasdaq Composite (COMP - 5,521.06) outperformed its peers, tacking on 33.1 points, or 0.6% during the session, and bringing its weekly gain to 2.6%. The COMP notched an all-time high of 5,536.52.

The CBOE Volatility Index (VIX - 11.32) slipped 0.4 point, or 3.2%, to end the week 19.4% lower.

indexes closing summary jan 6
nyse and nasdaq stats jan 6

5 Items on Our Radar Today

  1. Multiple people were killed when a shooter opened fire in Fort Lauderdale-Hollywood International Airport early this afternoon. Police reported one suspect is in custody, after sources said at least nine people were shot, but the situation may still be active, according to law enforcement. (Reuters; CNBC)
  2. Long-troubled Theranos reported today it will cut 155 jobs -- roughly 41% of its total workforce -- as it focuses on its business plans for its key blood-testing product, miniLab. Theranos has been running into problems with regulators for more than a year, as questions arose regarding the methodology and accuracy of its technology. (Bloomberg)
  3. What are "golden crosses" and "death crosses," and how can they help with your trade decisions?
  4. The M&A comments that send Pandora Media Inc (NYSE:P) stock sliding.
  5. A look at how our recommended options trade on athenahealth, Inc (NASDAQ:ATHN) made a profit of 100%.

unusual options activity jan 6
Data courtesy of Trade-Alert

Commodities:

Oil prices finished a choppy session higher, as traders digested clues that major crude producers are sticking to the agreed-upon cuts in output. For the day, February-dated crude finished 23 cents, or 0.4%, higher at $53.99 per barrel. For the week, oil added 0.5%.

After hitting a four-week high on Thursday, gold prices trended lower as the U.S. dollar strengthened despite this morning's largely lackluster jobs report. Gold for February delivery shed $7.90, or 0.7%, to close at $1,173.40 an ounce. Still, the contract added 1.8% for the week.

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