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Earnings, Oil Keep Dow Jones Industrial Average Rally Alive

The Energy Stock with Huge Upside Potential

Jan 26, 2017 at 4:24 PM
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The Dow Jones Industrial Average (DJIA) today kept its renewed Trump rally alive after breaking through a major psychological hurdle at 20,000 in the previous session. The Dow climbed to a fresh record high of 20,125.58 early in the session, and held fairly steady throughout the day, as traders weighed another hefty round of corporate earnings against a mixed bag of economic reports. A two-week high in crude oil prices helped give stocks a boost. Meanwhile, the S&P 500 Index (SPX) and Nasdaq Composite (COMP) both hit new intraday highs, but struggled to hold onto their gains.
 
Continue reading for more on today's market, including:
 

  • 2 drug stocks highlighting weakness in the biotech sector.
  • Schaeffer's Quantitative Analyst Chris Prybal weighs in on a pair of stocks flashing "buy" signals.
  • An under-the-radar energy play with huge upside potential for options traders.
  • Plus, 3 tech stocks moving on earnings, the buzz that sent Charter Communications to record highs, and why Ford Motor bulls are sweating.

The Dow Jones Industrial Average (DJIA - 20,100.91) rose 32.4 points, or 0.2%, for the day. DuPont (NYSE:DD) led 17 of the 30 components higher with a 1.7% gain, while Verizon Communications, Inc. (NYSE:VZ) paced the losers, shedding 1.3% amid acquisition rumors.

The S&P 500 Index (SPX - 2,296.68) slipped 1.7 points, or less than 0.1%, after hitting a record intraday high of 2,300.99. The Nasdaq Composite (COMP - 5,655.18) explored both sides of breakeven, and tapped an all-time intraday peak of 5,669.61, before ending just 1.2 point, or 0.02%, lower.

The CBOE Volatility Index (VIX - 10.63) dropped 0.2 point, or 1.7%, for its third consecutive close at two-and-a-half-year lows.

indexes closing summary jan 26b
nyse and nasdaq stats jan 26

5 Items on Our Radar Today

  1. Tensions continue to rise between the U.S. and Mexico as the presidents of both countries took to Twitter to discuss hot-button issues -- including the North American Free Trade Agreement (NAFTA) and the likelihood of Mexico paying for a border wall, as promised repeatedly by President Trump. The two also disagreed over the cancellation of a planned meeting for next week, with Mexican President Enrique Pena Nieto insisting he called off the meeting, while Trump says the decision was mutual. Separately, atomic scientists today moved the symbolic "Doomsday Clock" up by 30 seconds, to two and a half minutes from midnight. (CNBC, Reuters)
  2. Following last Saturday's massive nationwide protest marches, another group is organizing against the current administration: scientists. A movement apparently started on Reddit, and now spreading across many social media networks, is looking to plan protests after the White House website -- freshly updated after Trump took office -- has axed references to climate change, sparking concerns that proven scientific evidence will be ignored in upcoming policy changes. (CNBC)
  3. 3 tech names making big moves after earnings.
  4. The blue-chip M&A chatter that sent Charter Communications, Inc. (NASDAQ:CHTR) to record highs.
  5. How overblown optimism sent Ford Motor Company (NYSE:F) sliding after earnings.

quarterly earnings jan 26
unusual options activity jan 26
Data courtesy of Trade-Alert

Commodities

Expectations for rising crude demand gave oil prices a boost. Despite Wednesday's data showing an uptick in domestic inventories, March-dated crude oil climbed $1.03, or 2%, to $53.78 per barrel -- its highest settlement in two weeks.

Gold futures slid to a two-week low, moving inversely to a stronger U.S. dollar and rising stocks. February-dated gold gave back $8, or 0.7%, to close at $1,189.80 an ounce.

Stay on top of overnight news & big morning movers. Sign up now for Schaeffer's Opening View.

 

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