Dow Hits Record High as Nasdaq, S&P Pull Back

The SPX closed lower, but managed another record intraday high

Sep 14, 2017 at 4:29 PM
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The Dow Jones Industrial Average (DJIA) closed higher for a fifth straight day, hitting fresh record highs in the process. However, the broader stock market struggled for gains, with the Nasdaq Composite (COMP) and S&P 500 Index (SPX) both retreating from yesterday's record closes -- though the latter index did manage another intraday peak early in the day. For the most part, investors considered this morning's stronger-than-expected update on inflation, which boosted expectations for a December rate hike. Meanwhile, oil prices rose once again, with crude futures taking a brief trek above the $50-per-barrel mark. 

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

  • Time to buy calls on this pharma stock. 
  • Options bulls can't get enough of this surging biotech stock
  • How GrubHub short sellers could send the shares higher. 
  • Plus, bullish expectations for eBay; Morgan Stanley calls out a car rental stock; and an oil stock ready to bounce. 

After notching an all-time intraday peak of 22,216.44, the Dow Jones Industrial Average (DJIA - 22,203.48) closed up 45.3 points, or 0.2% -- a record. Sixteen Dow stocks managed gains, the biggest of which came from United Technologies, which added 2.6%. Procter & Gamble and McDonald's both closed flat, and Travelers stock paced the 12 blue-chip losers by falling 1.3%. 

The S&P 500 Index (SPX - 2,495.62) hit a record high of 2,498.43, but finished with a 2.8-point, or 0.1%, loss. The Nasdaq Composite (COMP - 6,429.08) fell 31.1 points, or 0.5%. 
 
The CBOE Volatility Index (VIX - 10.44) closed lower for a fourth straight day, giving back 0.06 point, or 0.6%. 

Closing Indexexs Summary September 14
NYSEandNasdaq September 14

5 Items on Our Radar Today

  1. Former pharmaceutical executive Martin Shkreli has been ordered to jail while awaiting sentencing. A judge made the decision following a Facebook post in which the "pharma bro" offered $5,000 for a strand of Hillary Clinton's hair, saying it represented "a solicitation of assault in exchange for money." (Reuters)
  2. Tesla CEO Elon Musk teased the company's electric semi-truck on Twitter last night. Musk said the company is set to unveil the truck at an event next month. (USA Today)
  3. The brokerage firm predicting higher highs for eBay
  4. Morgan Stanley: Investor expectations may be too high on this stock. 
  5. Why this oil stock could be ready to bounce. 

Corporate Earnings Chart September 14
Unusual Options Activity September 14
Data courtesy of Trade-Alert

Commodities

Oil prices extended their win streak to four, briefly toppling the closely watched $50-per-barrel level in intraday action. Crude set for October delivery ended the day 59 cents, or 1.2%, higher at $49.89 per barrel -- the loftiest settlement since July 31. 

Gold ended a three-day losing streak, following today's inflation data. December-dated gold added $1.30, or 0.1%, to end at $1,329.30 per ounce. 

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