Dow Jones Industrial Average Edges Higher After Fed Decision

This Exploding Penny Stock Has Room to Run

Josh Selway
May 3, 2017 at 4:30 PM
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The Dow Jones Industrial Average (DJIA) spent most of the day trading in the red, but clawed its way higher after the Fed's policy announcement. The central bank kept interest rates unchanged, as expected, and said the economic slowdown in the first quarter was "transitory," bolstering expectations for a June rate hike, which gave bank stocks a lift. This followed a slight beat from the ADP private-sector jobs report, as much of the attention now turns to Friday's nonfarm payrolls report. Meanwhile, the S&P 500 Index (SPX) and Nasdaq Composite (COMP) both closed lower, due in part to Apple stock's post-earnings pullback. 

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

  • The Goldman Sachs nod that boosted Valeant stock
  • This exploding penny stock could have room to run, if shorts hit the bricks. 
  • How options traders played Gilead Sciences' earnings setback. 
  • Plus, how Uber derailed one cloud stock; regulators raid a drug company; and options traders brace for the French elections. 

The Dow Jones Industrial Average (DJIA - 20,957.90) rallied in the second half of the day to post an 8-point, or 0.04%, win. Of the 16 Dow components that closed higher, the best day came from Merck, which added 1.5%. Disney stock paced the 14 losers, closing down 2.5%.

The S&P 500 Index (SPX - 2,388.13) closed down 3 points, or 0.1%. The Nasdaq Composite (COMP - 6,072.55) finished the day 22.8 points, or 0.4%, in the red, halting its seven-session streak of record intraday highs.

The CBOE Volatility Index (VIX - 10.68) managed a 0.1-point, or 0.9%, win. 

Closing Indexes Summary May 3

NYSE and Nasdaq Stats May 3


5 Items on Our Radar Today:
  1. Streaming entertainment company Hulu is now offering a service that features over 50 channels of live TV for $39.99 per month. This will include all affiliates of the Walt Disney Company, such as ABC, as well as CBS and Fox. (USA Today)
  2. Facebook is hiring 3,000 workers to find and remove disturbing or violent videos from its site. CEO Mark Zuckerberg broke the news in a Facebook post, saying, "If we're going to build a safe community, we need to respond quickly." (ABC News)
  3. How Uber caused this cloud stock to sell off. 
  4. The Department of Justice raid that weighed on this drug stock. 
  5. Options data suggests skepticism is growing ahead of the French elections. 

Corporate Earnings May 3
Unusual Options Activity May 3
Data courtesy of Trade-Alert

Commodities

Oil prices got a bump today, as traders weighed a smaller-than-expected decline in weekly crude inventories and a slimmer-than-expected rise in gasoline supplies. June-dated crude futures finished with a 16-cent, or 0.3%, gain at $47.82 per barrel. 

Gold prices fell today, and continued its trek after-hours after the Fed's policy statement, which boosted the U.S. dollar. At the close, gold set for June delivery was down $8.50, or 0.7%, at $1,248.50 per ounce. 

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