Dow Jones Industrial Average Scores New High, 8th Straight Win

How to Prepare for a Volatility Pop

Feb 21, 2017 at 4:25 PM
facebook X logo linkedin

The Dow Jones Industrial Average (DJIA) notched its eighth straight win, as the Dow, S&P 500 Index (SPX), and Nasdaq Composite (COMP) all finished with new record highs. Traders applauded a round of earnings from big-name retail stocks, including blue chips Wal-Mart Stores Inc (NYSE:WMT) and Home Depot Inc (NYSE:HD), and energy stocks outperformed as oil prices rose. Continued optimism about U.S. President Donald Trump's upcoming tax plan announcement also helped keep stocks in record-breaking territory.

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

  • With the scales tipping toward a VIX spike, here's how to play a volatility pop, according to Schaeffer's Senior V.P. of Research Todd Salamone.
  • retail stocks targeted by bullish options traders.
  • One trader bet on this gold stock to double by 2018.
  • Plus, 3 plunging biotechs, the analyst looking at the iPhone 10, and Yahoo and Verizon renegotiate.

The Dow Jones Industrial Average (DJIA 20,743.00) added 119 points, or 0.6%, after peaking at 20,757.64 in intraday trading. Among the 30 Dow stocks, 23 finished higher, led by WMT, which tacked on 3%. The six Dow losers were led by Caterpillar Inc (NYSE:CAT), which dropped 0.8%. Pfizer Inc (NYSE:PFE) finished flat for the second session in a row.

The S&P 500 Index (SPX - 2,365.38) gained 14.2 points, or 0.6%, after touching a record high of 2,366.71. Meanwhile, the Nasdaq Composite (COMP - 5,865.95) also notched its best close ever, gaining 27.4 points, or 0.5%, after peaking at 5,867.88.

The CBOE Volatility Index (VIX - 11.57) added 0.1 point, or 0.7%.

Indexes closing summary February 21
NYSE and NASDAQ stats February 21

5 Items on Our Radar Today

  1. Wells Fargo & Co (NYSE:WFC) announced it had fired four senior managers following the bank's phony account scandals. The board unanimously voted to oust the four senior managers, who will receive no bonus for 2016. (Forbes)
  2. Restaurant Brands International Inc (NYSE:QSR), parent company of Burger King and Tim Hortons, will purchase Popeyes Louisiana Kitchen Inc (NASDAQ:PLKI) for $1.8 billion, or about $79 per share. QSR reportedly plans to expand PLKI's market reach, though the fried chicken chain already boasts 2,000 locations worldwide. (Reuters)
  3. Verizon Communications Inc. (NYSE:VZ) and Yahoo! Inc. (YHOO) traded higher after renegotiating their merger agreement.
  4. The analyst looking ahead to Apple Inc.'s (NASDAQ:AAPL) iPhone 10/X.
  5. biotech stocks that plummeted on disappointing drug data.

Quarterly Earnings February 21
Unusual Options Activity February 21
Data courtesy of Trade-Alert


March-dated crude futures gained 66 cents, or 1.2%, to finish at $54.06 per barrel, after new data from Organization of the Petroleum Exporting Countries (OPEC) showed compliance among members regarding the output cuts agreed on in January. 

April-dated gold futures dropped 20 cents to $1,238.90 per ounce. The precious metal was pressured lower as expectations for a rate hike next month boosted the dollar.

Get your daily dose of Dow futures, stock news, and more with Schaeffer's Opening View.


Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI