'Fear Index' Falls to Record Low Close; S&P Secures Longest Win Streak in 4 Years

The Dow, S&P, and Nasdaq hit record highs yet again

Oct 5, 2017 at 4:35 PM
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The Dow Jones Industrial Average (DJIA) notched yet another all-time high, as well as its seventh straight win, while the S&P 500 Index (SPX) extended its longest winning streak in four years -- and managed its sixth straight record close, marking the longest streak of that kind since 1997. As for the Nasdaq Composite (IXIC), the tech-rich index also wrapped up an eighth consecutive gain, for its longest rally since July. As the collective appetite for risk grew, the CBOE Volatility Index (VIX) -- or Wall Street's "fear index" -- fell to its lowest close ever.

Financial stocks led the pack higher today, after the Senate confirmed Trump nominee Randal Quarles to the Fed board. Meanwhile, the House of Representatives voted to adopt a $4.1 trillion budget for fiscal 2018, fueling hopes about tax reform. Outside of Capitol Hill, traders digested strong data on factory orders, the trade deficit, and jobless claims, the latter of which sparked optimism about tomorrow's highly anticipated nonfarm payrolls report.

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

  • The S&P signal that sounded just before Black Monday.
  • It may be time to roll the dice on this casino stock.
  • Why Deutsche Bank more than halved its price target on Western Digital.
  • Plus, 2 cybersecurity stocks headed higher; how McDonald's could burn bears; and the blue chip analysts say "buy." 

The Dow Jones Industrial Average (DJIA - 22,775.39) touched a record intraday peak of 22,777.04, and ended 113.8 points, or 0.5%, higher. Twenty-three of the Dow's 30 stocks ended in the black, led by a 2.4% rally for Goldman Sachs (GS). Merck (MRK) stock ended flat, while UnitedHealth (UNH) paced the losers with a 1.3% drop.

The S&P 500 Index (SPX - 2,552.07) finished near its intraday record of 2,552.51, gaining 14.3 points, or 0.6%. The Nasdaq Composite (IXIC - 6,585.36) tagged a record high of 6,587.21, and tacked on 50.7 points, or 0.8%
 
The CBOE Volatility Index (VIX - 9.19) fell 0.4 points, or 4.6%, for its lowest close ever.

Closing Indexes Summary Oct 5
NYSE and Nasdaq Stats Oct 5

5 Items on Our Radar Today

  1. Popular TV streaming platform Netflix upped monthly fees for users in the United States for the first time since 2015, making it more expensive for watchers subscribed to its mid-range and top-tier plan. While the basic plan fee didn't see any surcharges, the company is likely boosting costs to support the creation of original content, after Walt Disney said it plans to pull its content from Netflix. (Reuters)
  2. Toys R Us recalled almost 30,000 Bruin Infant Wiggle Ball toys, or giggle balls as some call them, due to a warning from the U.S. Consumer Product Safety Commission that the toy is a choking hazard. The recall comes not long after the toy store filed for Chapter 11 bankruptcy, which impacted toy stocks like Hasbro and Mattel. (CNBC)
  3. These outperforming cybersecurity stocks could be headed higher.
  4. How McDonald's stock could burn bearish options traders.
  5. Analyst: Buy this surging Dow stock.


Corporate Earnings Oct 5
Unusual Options Activity Oct 5
Data courtesy of Trade-Alert

Commodities

Crude futures rebounded today after falling for three straight sessions, on expectations that Saudi Arabia and Russia would extend production cuts. November-dated oil futures ended with a gain of 81 cents, or 1.6%, at $50.79 per barrel.

Meanwhile, gold settled lower today, as strong economic data lifted the dollar and expectations for an additional rate hike in 2017. December-dated gold ended down $3.60, or 0.3% lower, at $1,273.20 an ounce.

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