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Nasdaq, VIX Break Records; Dow Jones Industrial Average Gains Despite IBM Drop

New VIX Record; Plus, 3 Drug Stocks Feeling the Pain

Managing Editor
Jul 19, 2017 at 4:27 PM
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The Dow Jones Industrial Average (DJIA) finished at a record closing high, despite a sharp loss from IBM, which reported subpar earnings results. The S&P 500 Index (SPX) also ended higher, touching another all-time peak. The big story, however, continues to be the tech-rich Nasdaq Composite (COMP), which notched its own record high and logged a ninth straight win -- the longest streak in more than two years. Likewise, tech titan Apple stock also ended a ninth straight session in the black -- its longest streak since August 2014. Amid an escalating appetite for risk, the CBOE Volatility Index (VIX) -- or the stock market's "fear gauge" -- closed below 10 for the fifth straight session, a new record. 

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

  •  3 drug stocks that felt the pain today.
  •  2 'golden' finance stocks for your watch list. 
  •  These Dow stocks are through the roof ahead of earnings.
  • Plus, eBay options insurance; a new FAANG record; and a solid bank stock.

The Dow Jones Industrial Average (DJIA - 21,640.75) added 66 points, or 0.3%, for a new record close. Of the 30 Dow stocks, 26 ended positive, led by a 1.6% gain for DuPont. IBM stock was the biggest loser, dipping 4.2%.

The S&P 500 Index (SPX - 2,473.83) added 13.2 points, or 0.5%, to end at an all-time high. The Nasdaq Composite (COMP - 6,385.04) added 40.7 points, or 0.6%. It also hit an intraday peak of 6,387.73.

The CBOE Volatility Index (VIX - 9.79) shed 0.1 point, or 1%, to end below 10 for its fifth straight session.

Closing Indexes Summary July 19

NYSE and Nasdaq July 19

5 Items on Our Radar Today:

  1. President Trump said senators should stay in Washington to work on a re-draft of the healthcare bill. "We shouldn't leave town, and we should hammer this out and get it done." This comes just after the most recent healthcare proposal collapsed on Monday. (CNBC)
  2. Acquiring a private education for their children is becoming increasingly hard for middle-class parents. The average tuition of private elementary schools increased more than 400% from 1979 to 2011, according to a National Bureau of Economic Research paper. (Bloomberg)
  3. Investors may be buying options insurance ahead of eBay earnings.
  4. The FAANG stock that hit a new record high today.
  5. The bank stock that broke the earnings trend.

Corporate Earnings Chart July 19
Unusual Options Activity July 18
Data courtesy of Trade-Alert

Commodities

Oil prices rallied to a six-week high, after the Energy Information Administration said U.S. crude supplies fell for a third consecutive week. By the close, August-dated oil futures were up 1.6% or 72 cents, settling at $47.12 per barrel.

Gold futures eked out a fourth straight win, following a wishy-washy session. By the close, August-dated gold futures were up 10 cents at $1,242 an ounce. 

 

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