Dow Jones Industrial Average Skyrockets 303 Points, Roars to Record Highs

What This Rare VIX Signal Means for Stocks

Mar 1, 2017 at 4:21 PM
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The Dow Jones Industrial Average (DJIA), S&P 500 Index (SPX), and Nasdaq Composite (COMP) all notched record highs, as stocks responded positively to President Donald Trump's congressional address. Traders also welcomed a mostly positive set of economic reports, with the Fed's Beige Book describing "generally optimistic" business conditions. March rate-hike speculation continued to intensify, as well, with Dallas Fed President Robert Kaplan again calling for lift-off sooner rather than later, with the U.S. "much closer to meeting our employment and inflation objectives." Against this backdrop, the Dow skyrocketed north of 21,000 for the first time ever, tying the tech-boom record for the fastest rally from one 1,000-point marker to the next.

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

  • What this rare VIX signal means for stocks.
  • The biotech stock that blew up by 53%.
  • 2 ETFs you'll want to own this month, if history is any indicator.
  • Plus... 2 insurance stocks to watch, a FANG technical alert, and Oprah's big day.

The Dow Jones Industrial Average (DJIA 21,115.55) shot higher out of the gate and never looked back, adding 303.3 points, or 1.5%, in addition to topping out at a record 21,169.11 intraday. Twenty-eight Dow stocks advanced, paced by JPMorgan Chase & Co.'s (NYSE:JPM) 3.3% jump. On the other hand, Wal-Mart Stores Inc (NYSE:WMT) and Intel Corporation (NASDAQ:INTC) lost 0.7% apiece.

The S&P 500 Index (SPX - 2,395.96) drove to a gain of 32.3 points, or 1.4%, and touched its highest mark ever at 2,400.98. The Nasdaq Composite (COMP - 5,904.03) added 78.6 points, or 1.4%, while nabbing its own all-time high of 5,911.79.

The CBOE Volatility Index (VIX - 12.54) plunged 0.4 point, or 2.9%, surrendering a brief foothold atop its 80-day moving average.

closing indexes summary march 1
NYSE and Nasdaq stats march 1

5 Items on Our Radar Today

  1. The Fed Beige Book said all 12 central bank districts grew at a "modest-to-moderate" rate. However, optimism showed signs of waning relative to the January report, with "uncertainty" mentioned more than twice as many times. (MarketWatch)
  2. Wells Fargo & Co (NYSE:WFC) cracked down on executive compensation, following a scandal in which millions of accounts were opened without authorization. CEO Tim Sloan and seven other top officers will not receive cash bonuses for 2016, resulting in a total cut of roughly $32 million. (USA Today)
  3. 2 insurance stocks for your March watch list.
  4. The FANG stock verging on a golden cross.
  5. The earnings beat padding Oprah's portfolio.

Corporate earnings march 1

Unusual Options Activity March 1
Data courtesy of Trade-Alert

Commodities

Domestic crude stockpiles rose less than expected last week, but reached their highest level ever, pressuring oil prices. Specifically, April-dated crude futures surrendered 18 cents, or 0.3%, to land at $53.83 per barrel.

Gold fell after hawkish comments from Fed officials increased the odds of a March rate hike, and strengthened the dollar. By day's end, gold for April delivery was down $3.90, or 0.3%, to settle at $1,250 per ounce.

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