Dow Jones Industrial Average Closes Up; Nasdaq Nabs Another New High

Sell These 25 Stocks Now

Apr 27, 2017 at 4:26 PM
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After a blowout start to the trading week -- a rare occurrence for the Dow Jones Industrial Average (DJIA) -- the blue-chip barometer explored a slim 70-point range today, eventually settling with a modest gain. Traders took a tentative approach after the White House released a less-than-detailed tax plan yesterday, and also mulled over the possibility of a government shutdown. Nevertheless, tech stocks outperformed ahead of a raft of big-name earnings reports, with the Nasdaq Composite (COMP) hitting a record intraday high for the fourth straight day, and settling at its highest perch to date.

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

  • Sell these 25 stocks now, if past is prologue.
  • 2 oil majors to put on the earnings watch list.
  • Call buyers may want to take a closer look at Merck and Eli Lilly.
  • Plus, Paypal's big day; how we won big with RH call options; and how to find prime trading opportunities.

The Dow Jones Industrial Average (DJIA - 20,981.33) traded on both sides of breakeven, before settling up 6.2 points, or 0.03%. Intel led 17 Dow stocks higher with its 1.4% gain, while Caterpillar paced the 13 decliners with its 1.9% loss.

The S&P 500 Index (SPX - 2,388.77) added 1.3 points, or 0.06%. The Nasdaq Composite (COMP - 6,048.94) closed 23.7 points, or 0.4%, higher, after notching a record intraday peak of 6,050.46.

The CBOE Volatility Index (VIX - 10.36) gave back 0.5 point, or 4.5%.

closing indexes summary april 27
nyse and nasdaq stats april 27

5 Items on Our Radar Today:

  1. American Airlines boosted the pay of pilots and flight attendants by an average of 6.5%, or $930 million through 2019. While AAL CEO Doug Parker said, "investments in our team are investments in our product," Wall Street was quick to disagree. AAL stock fell more than 5%, even after the airline reported better-than-expected earnings. (Bloomberg)
  2. United Airlines has settled with Dr. David Dao, the passenger who was forcibly removed from an overbooked flight earlier this month. Under the terms of the agreement, the amount of the settlement will not be released, though United said in a statement it was an "amicable resolution."  (CNBC)
  3. Earnings and price-target hikes helped send Paypal stock to a new record high.
  4. A quick look at how we tripled our money by buying call options on RH.
  5. Using short interest as a contrarian indicator can help find prime trading opportunities.

Corporate Earnings April 27
Unusual Options Activity April 27
Data courtesy of Trade-Alert

Commodities

Concern over a domestic supply glut and news that Libya has resumed production at a pair of key oil fields pressured crude oil prices. June-dated crude settled down 65 cents, or 1.3%, at $48.97 per barrel -- its lowest level since March 28.

Gold rose for the first session in four, bouncing back from Wednesday's multi-week low. At the close, gold for June delivery was up $1.70, or 0.1%, at $1,265.90 an ounce.

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