Trump Comments Boost Dow Jones Industrial Average to Record Highs

Tesla Stock Could Have Gas In the Tank

by Celeste Taylor

Published on Feb 9, 2017 at 4:23 PM

The Dow Jones Industrial Average (DJIA) soared triple-digits and snagged a new all-time high -- along with the S&P 500 Index (SPX) and Nasdaq Composite (COMP) -- as traders reacted to comments from U.S. President Donald Trump, who promised to release a "phenomenal" tax announcement within the next "two or three weeks." Further boosting stocks was a surprise dip in weekly jobless claims, as well as dovish comments from St. Louis Fed President James Bullard. Later, Chicago Fed President Charles Evans spoke in favor of gradual rate increases. 

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

  • Behind this Dow stock's red-hot options volume.
  • The cloud stock blitzed by option bulls.
  • Why soaring Tesla Inc (NASDAQ:TSLA) could have gas in the tank.
  • Plus, an $850 sale in jeopardy, the stock that Trump couldn't save, and the recycling stock that's more than tripled in 12 months.

The Dow Jones Industrial Average (DJIA 20,172.40) notched a new all-time high of 20,206.36 in intraday trading, gaining 118.1 points, or 0.6%. Nike Inc (NYSE:NKE) tacked on 2.7% to lead the 26 Dow leaders, while Intel Corporation (NASDAQ:INTC) led the four Dow losers, dropping 2.5%.

The S&P 500 Index (SPX - 2,307.87) also notched a new all-time high of 2,311.08, adding 13.2 points, or 0.6%, by the bell. The Nasdaq Composite (COMP - 5,715.18) rounded out the triple with its own all-time best of 5,722.70, gaining 32.7 points for the day, or 0.6%.

The CBOE Volatility Index (VIX - 10.88) fell 0.6 point, or 5%.

Indexes closing summary February 9
NYSE and NASDAQ stats February 9

5 Items on Our Radar Today

  1. A federal judge quashed Anthem Inc's (NYSE:ANTM) proposed buyout of rival CIGNA Corporation (NYSE:CI), a deal worth $48 billion. The judge ruled that the merger would reduce competition in the insurance market, though ANTM reportedly plans to file an appeal on the ruling. (USA Today)
  2. Sears Holdings Corp (NASDAQ:SHLD) settled a lawsuit that alleged CEO Eddie Lampert benefited from a deal to sell 235 of the best retail locations to Seritage Growth Properties (NYSE:SRG), which is also controlled by Lampert. The $40 million settlement will be paid to Sears. (Reuters)
  3. Why this $850 million sale could be stopped in its tracks.
  4. Turns out Trump couldn't save Twitter Inc (NYSE:TWTR).
  5. The new partnership helping this recycling expert extend its 240% year-over-year lead.

Quarterly Earnings February 9
Unusual Options Activity February 9
Data courtesy of Trade-Alert

Commodities

March-dated crude futures rose 66 cents, or 1.3%, to finish at $53 per barrel, thanks to a surprise drop in gasoline stockpiles. However, renewed strength in the dollar kept crude's gains in check.

April-dated gold futures slipped to $1,236.80 per ounce, down $2.70, or 0.2% -- snapping the yellow metal's five-day winning streak. Traders turned away from the safe haven commodity as President Trump promised a forthcoming tax announcement.

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