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Dow Jones Industrial Average Matches Longest Streak of Record Closing Highs

5 Reasons We Rejected This Trade Idea

Feb 27, 2017 at 4:26 PM
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The Dow Jones Industrial Average (DJIA) ended on a 12th consecutive closing high -- matching its longest streak ever, set in 1987 -- while the S&P 500 Index (SPX) nabbed its own all-time peak. On a percentage basis, though, stocks gained only modestly, as uncertainty prevailed ahead of tomorrow's gross domestic product (GDP) data, as well as President Donald Trump's speech before Congress. Also in view today were comments from Dallas Fed President Robert Kaplan, who urged the central bank to hike interest rates "sooner rather than later."

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

  • 5 reasons we rejected this bearish options trade idea.
  • 2 stocks crushing short sellers.
  • How to trade these 3 stocks joining the SPX.
  • Plus... Ambarella earnings on deck, Apple's big endorsement, and why one stock nearly doubled.

The Dow Jones Industrial Average (DJIA 20,837.44) added 15.7 points, or 0.1%, and touched a record high of 20,851.33. However, just 11 of 30 Dow stocks advanced, led by Caterpillar Inc.'s (NYSE:CAT) 2.1% gain. Of the 19 blue-chip losers, Verizon Communications Inc. (NYSE:VZ) was worst off, down 1.3%.

The S&P 500 Index (SPX - 2,369.73) rose 2.4 points, or 0.1% -- and tagged a record peak of 2,371.54. Meanwhile, the Nasdaq Composite (COMP - 5,861.90) bested its peers, tacking on 16.6 points, or 0.3%.

The CBOE Volatility Index (VIX - 12.09) jumped 0.6 point, or 5.4% for its first close above the 12 level since mid-January.

Indexes closing summary February 27
NYSE and NASDAQ stats February 27

5 Items on Our Radar Today

  1. Amit Singhal, senior vice president of engineering for Uber, has resigned from his position with the ride-hailing service, less than two months after assuming it. Uber CEO Travis Kalanick asked Singhal to step down after sexual harassment allegations from his time with Alphabet Inc (NASDAQ:GOOGL) came to light. (Recode)
  2. Wendy's Co (NASDAQ:WEN) announced plans to introduce self-ordering kiosks at roughly 1,000 locations by the end of 2017. The fast-food giant has been testing the technology at several locations in Ohio, and the company's chief information officer expects a positive return on investment within two years. (New York Post)
  3. Pre-earnings bears have been bombarding Ambarella Inc (NASDAQ:AMBA).
  4. Apple Inc.'s (NASDAQ:AAPL) big endorsement from the Oracle of Omaha.
  5. Why this drug stock soared 76%.

Quarterly Earnings February 27

Unusual Options Activity February 27
Data courtesy of Trade-Alert

Commodities

Oil prices edged slightly higher, as traders weighed output cuts overseas -- due to compliance with the Organization of the Petroleum Exporting Countries (OPEC) agreement -- against the prospect of additional U.S. production. By day's end, April-dated crude futures were up just 6 cents, or 0.1%, to settle at $54.05 per barrel.

Gold rebounded from Kaplan's hawkish rate-hike comments to end with its third consecutive gain -- and at a more than three-month high -- as uncertainty ahead of President Trump's speech brought investors to so-called "safe havens." By day's end, April-dated gold had added 50 cents to close at $1,258.80 per ounce.

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

 

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