New Records for S&P, Nasdaq; Dow Jones Industrial Average Extends Win Streak

Buy Calls on This Drug Stock

May 25, 2017 at 4:31 PM
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The Dow Jones Industrial Average (DJIA) kept up its winning ways today, rallying to a sixth straight win. The S&P 500 Index (SPX) and Nasdaq Composite (COMP) also extended their win streaks to six, notching record highs in the process, as retailers and tech stocks led the charge. Stocks overcame a substantial drop in oil prices, following lighter-than-expected supply cuts from the Organization of the Petroleum Exporting Countries (OPEC). Traders are now turning their attention to tomorrow's estimate for first-quarter gross domestic product (GDP), as the Dow tries to close out a flawless week. 

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

  • It's time to buy calls on this drug stock, if recent history is any indicator. 
  • Analyst: Wall Street is low-balling this FANG stock.  
  • The report that had SNAP stock rallying.  
  • Plus, a limited-risk options strategy; a surging stock with more upside; and how we tripled our money on Ctrip.com options. 

The Dow Jones Industrial Average (DJIA - 21,082.95) gained 70.5 points, or 0.3%, finishing fewer than 90 points from its all-time high. Twenty-two of 30 Dow components closed higher, with UnitedHealth stock pacing the winners with a 1.4% rise. DuPont was the biggest decliner, down 1.3%. 

The S&P 500 Index (SPX - 2,415.07) added 10.7 points, or 0.4%, for its best close on record. The SPX earlier peaked at 2,418.71. The Nasdaq Composite (COMP - 6,205.26) also posted an all-time best close, adding 42.2 points, or 0.7%, after touching an intraday high of 6,217.34.

The CBOE Volatility Index (VIX - 9.98) dipped 0.03 point, or 0.3%, for its first close below 10 since May 9. 

Closing Indexes Summary May 25
NYSE and Nasdaq Stats May 25


5 Items on Our Radar Today:
  1. A federal appeals court has upheld a lower ruling, blocking President Trump's immigration ban. The court said it was "unconvinced" the ban was meant for national security. (CNBC)
  2. T-Mobile said its Digits service will be available to the public starting next Wednesday. The service allows users to sync their phone number to multiple devices. (The Verge)
  3. Breaking down a limited-risk options strategy.  
  4. This stock has doubled in the past week -- and more gains could be coming. 
  5. How options traders tripled their money on Ctrip.Com stock

Corporate Earnings May 25
Unusual Options Activity May 25
Data courtesy of Trade-Alert

Commodities

Oil prices fell sharply today, as traders were hoping for bigger supply cuts from oil producers. July-dated crude futures fell $2.46, or 4.8%, to close at $48.90 per barrel. 

Gold futures broke a two-day losing streak today. By the close, June-dated gold was up $3.30, or 0.3%, at $1,256.40 an ounce. 


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