Dow Jones Industrial Average Pops 216 Points Ahead of Trump Tax Plan

Analyst: Buy This FANG Stock Ahead of Earnings

Apr 24, 2017 at 4:29 PM
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The Dow Jones Industrial Average (DJIA) jumped 200 points out of the gate, and spent the whole session trading higher. Stocks reacted to the first-round results of the French presidential election, as well as anticipation that President Donald Trump will unveil his tax plan on Wednesday. Trump's chief economic advisor, Gary Cohn, and Treasury Secretary Steven Mnuchin are expected to meet with Republican leaders tomorrow on Capitol Hill. Bank stocks were the big winners -- and helped boost the S&P 500 Index (SPX) -- while strong days for Amazon and Hasbro stocks sent the Nasdaq Composite (COMP) into uncharted territory. Against this risk-on backdrop, the CBOE Volatility Index (VIX) plunged 25%.

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

  • 5 signs today's stock surge was a relief rally.
  • Analyst: Buy this FANG stock ahead of earnings.
  • 2 must-see stock charts this week.
  • Plus, a spiraling drug stock; a closer look at surging chipmakers; and the Dow stock hitting new highs.

The Dow Jones Industrial Average (DJIA - 20,763.89) added 216.1 points, or 1%. JPMorgan Chase led 25 Dow stocks higher with its 3.5% pop, while Nike paced the four decliners with its 0.7% loss. General Electric was unchanged.

The S&P 500 Index (SPX - 2,374.15) closed up 25.5 points, or 1.1%, clearing recent resistance at 2,350. The Nasdaq Composite (COMP - 5,983.82) hit an intraday high of 5,989.92, before settling with a 73.3-point, or 1.2%, gain -- its loftiest close on record.

The CBOE Volatility Index (VIX - 10.84) plunged 3.8 points, or 25.9%, to mark its lowest close since Feb. 14.

closing indexes summary april 24

nyse and nasdaq stats april 24

5 Items on Our Radar Today:

  1. The White House has called for a rare full-Senate briefing on Wednesday to discuss North Korea, and what Trump is calling a "real threat to the world." The briefing will reportedly include Secretary of State Rex Tillerson, Secretary of Defense Jim Mattis, Director of National Intelligence Dan Coats, and Joint Chiefs of Staff Chairman General Joseph Dunford, with all 100 senators invited to attend. (MarketWatch)
  2. The Supreme Court declined to hear a case from General Motors to block ignition-switch suits due to a clause in its 2009 bankruptcy. In 2016, a 2nd U.S. Circuit Court of Appeals ruled that GM was not protected from the claims because many of the plaintiffs were not notified of the faulty ignition switches and/or the company's bankruptcy. (Reuters)
  3. A "buy the rumor, sell the news" scenario sent this drug stock down nearly 15%.
  4. Founder and CEO Bernie Schaeffer took a closer look at the surging semiconductor sector
  5. Shares of this Dow component hit a fresh record high ahead earnings -- and more gains could be on the way.

corporate earnings april 24
unusual options activity april 24
Data courtesy of Trade-Alert

Commodities

Crude prices slid for a sixth straight day, after Russian officials said the country's oil output could hit a 30-year high if the Organization of the Petroleum Exporting Countries (OPEC) and non-OPEC members choose not to extend an output agreement past June. At the close, crude for June delivery was down 39 cents, or 0.8%, at $49.23 per barrel.

Gold futures fell today, as traders took a risk-on approach to the stock market. Gold for June delivery ended the session down $11.60, or 0.9%, at $1,277.50 an ounce.

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