Dow Closes Back Above 22K as Rate-Hike Expectations Cool

Gold futures bounced back to end higher as Trump dissolved his business advisory councils

Aug 16, 2017 at 4:29 PM
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The Dow Jones Industrial Average (DJIA) managed to reach a fourth straight win, even as stocks pared their gains following the latest Fed meeting minutes. Some members of the policy-setting group argued there's room for patience on future rate hikes, effectively tamping down investors' expectations for further tightening in 2017 -- but central bankers also noted that "uncertainty about the course of federal government policy" could keep a lid on corporate spending and hiring. 

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

  • The surprising truth about how traders are playing VIX options.
  • The FAANG stock President Trump called out on Twitter.
  • The networking stock that sank to six-month lows.
  • Plus, Alphabet lands a 4-digit price target; another analyst turns on SNAP; and the upcoming Dow earnings bearish traders are eyeing.

The Dow Jones Industrial Average (DJIA - 22,024.87) ended with a gain of 25.9 points, or 0.1%. Eighteen of the Dow's 30 stocks ended higher, led by United Tech's 2.4% rally. Goldman Sachs paced the 12 losers, dropping 0.9%.

The S&P 500 Index (SPX - 2,468.11) gained 3.5 points, or 0.1%. The tech-heavy Nasdaq Composite (COMP - 6,345.11) also ended higher, rising 12.1 points, or 0.2%.

The CBOE Volatility Index (VIX - 11.74) lost 0.3 point, or 2.5%. The VIX's intraday low occurred squarely at the key 11.25 level, which represents half its pre-election closing high.

Closing Indexes Summary August 16


NYSE & Nasdaq August 16

5 Items on Our Radar Today

  1.  President Trump has decided to fold his manufacturing advisory council following a slew of CEO resignations, which came in protest to the president's response to Saturday's violence in Charlottesville. Trump said he is disbanding the council to avoid "putting pressure on the businesspeople of the Manufacturing Council & Strategy & Policy Forum." (CNBC)
  2. Federal Reserve Vice Chair Stanley Fischer criticized the Trump administration's efforts to roll back crisis-era financial regulations as "really extremely dangerous and extremely shortsighted." (MarketWatch)
  3.  SunTrust Robinson is looking for Alphabet to bounce back above $1,000 per share.
  4.  SNAP was slapped with its latest "sell" rating.
  5.  Bearish traders prepare for Wal-Mart earnings.

Corporate Earnings Chart August 16


Unusual Options Activity August 16
Data courtesy of Trade-Alert

Commodities

Despite a deeper-than-expected decline in oil inventories, crude futures fell today as domestic production surged to two-year highs. September-dated crude ended down $0.77, or 1.6%, at $46.78 per barrel. 

After trading lower throughout most of the session, gold staged a last-minute turnaround after Trump disbanded two business advisory councils. December-dated gold futures finished up 0.3%, or $3.20, at $1,282.90 per ounce. 

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