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Dow Jones Industrial Average Up; S&P, Nasdaq Edge Higher

Buy Calls On This Steel Stock

Apr 4, 2017 at 4:26 PM
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The Dow Jones Industrial Average (DJIA) explored a 95-point trading range today, eventually settling with a modest gain thanks to a big boost from Caterpillar shares. Traders kept a close eye trained on D.C., where -- ahead of his end-of-week meeting with Chinese President Xi Jinping -- President Donald Trump waxed optimistic over an infrastructure plan worth at least $1 trillion, due in May. Elsewhere, a late-session burst of buying power helped the S&P 500 Index (SPX) eke out a gain, even as bank stocks declined, while the Nasdaq Composite (COMP) narrowly avoided its first three-day losing streak of 2017. 
 
Continue reading for more on today's market, including:

  • History says it's a good time to buy calls on this steel stock.
  • Tesla stock's rally above $300 could have legs.
  • Options traders targeted these 2 hospital stocks on reports of a revamped healthcare bill.
  • Plus, Apple stock does it again; M&A buzz moves Staples, Kate Spade shares; and 2 auto stocks in technical trouble.

The Dow Jones Industrial Average (DJIA - 20,689.24) was down 44 points at its intraday low, before swinging to a 39-point, or 0.2%, gain. Twenty-one of the Dow's 30 components closed higher, paced by CAT's 2% rise. Nike led the nine decliners with its 1% drop.

The S&P 500 Index (SPX - 2,360.16) added 1.3 points, or 0.06%, while the Nasdaq Composite (COMP - 5,898.61) tacked on 3.9 points, or 0.07%. Both indexes snapped a two-day losing streak.

The CBOE Volatility Index (VIX - 11.79) ended down 0.6 point, or 4.8%.

closing indexes summary april 4
nyse and nasdaq stats april 4

5 Items on Our Radar Today

  1. Richmond Fed President Jeffrey Lacker resigned today, after confirming he disclosed sensitive information to Medley Global Advisors in 2012. In a statement, Lacker said, "I deeply regret the role that I may have played in confirming … confidential information." Lacker -- who was expected to retire in October -- will be replaced on an interim basis by First Vice President Mark Mullinix. (MarketWatch)
  2. In his annual letter to shareholders, JPMorgan Chase CEO Jamie Dimon addressed an array of issues, including the need for regulatory change. He said that banks "have too much capital" in the current system, and that the concern that financial institutions can become "too big to fail ... has been solved."(Reuters)
  3. Another bullish brokerage note had Apple stock topping out at a fresh record high of $144.89.
  4. While rumors of a potential sale sent Staples stock soaring, Kate Spade shares plunged.
  5. Following Monday's sector sell-off, these 2 auto stocks are now trading near key technical levels.

corporate earnings april 4

unusual options activity april 4
Data courtesy of Trade-Alert

Commodities

Increased expectations of a weekly drop in domestic crude inventories lifted oil prices today. May-dated crude closed up 79 cents, or 1.6%, at $51.03 per barrel. 

Gold futures rose for a third straight session, as uncertainty swirls around Thursday's meeting between Trump and Xi. Gold for June delivery tacked on $4.40, or 0.4%, to settle at $1,258.40 an ounce -- its loftiest close since Feb. 27.

 

AI has exploded ever since ChatGPT set the world on fire near the end of 2022.

Numerous companies with connections to artificial intelligence have seen their stocks soar.

That includes Nvidia, the poster boy of AI.

Its stock has skyrocketed 716% since ChatGPT’s debut. But here’s the thing …

While everyone’s still counting their money from this first AI boom … Nvidia and countless others have moved on to the next stage.

That includes Big Tech, which is currently making a series of peculiar investments in a few strange companies. This has nothing to do with tech. At least on the surface …

Yet, these strange investments could be the early ripples of a massive wave …Without them, ChatGPT could stop operating … Amazon, Google, Microsoft and more could see profits drop drastically.

In fact, Elon Musk says these investments are critical when it comes to solving the number one problem facing AI.

Now, Silicon Valley legend Michael Robinson has identified two companies that could play a significant role in the solution.

Their stocks just may be the key to AI 2.0.

Find out more about these two companies today.
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