Well-received Dow component earnings helped the blue-chip index to a new record high
The Dow Jones Industrial Average (DJIA) topped the 23,000 level for the first time in early trading today, thanks to strong earnings from components Johnson & Johnson (JNJ) and UnitedHealth Group (UNH). Traders also cheered reports of a bipartisan healthcare agreement, which could help to preserve the Obamacare subsidies that President Trump put on the chopping block last week. However, despite the Dow's record-shattering day, it wasn't an all-out win for Wall Street.
Continue reading for more on today's market, including:
- As Black Monday turns 30, here's the surprising truth about the S&P's post-crash returns.
- The investment banking stock that soared to nine-year highs.
- Why eBay bears could be in for a post-earnings shock.
- Plus, the retail stock luring in call buyers; an inside look at FCX's latest downgrade; and a down day for gold futures.
The Dow Jones Industrial Average (DJIA - 22,997.44) hit a record high of 23,002.20 in early trading, ending with a gain of 40.5 points, or 0.2%. Leading the pack of 14 Dow gainers was UNH with a 5.5% gain, followed by JNJ's 3.4% pop. Meanwhile, Goldman Sachs (GS) paced the 16 losers with a 2.6% post-earnings drop.
The S&P 500 Index (SPX - 2,559.36) touched a record high of its own at 2,559.71, before closing up 1.7 points, or 0.06%. The Nasdaq Composite (IXIC - 6,623.66) ended down 0.4 point, or 0.01%.
The CBOE Volatility Index (VIX - 10.31) gained 0.4 point, or 4%, ahead of tomorrow's VIX options expiration.
5 Items on Our Radar Today
- PayPal announced that customers will be able to use its mobile payment application, Venmo, to purchase online goods from more than 2 million U.S. retailers starting this week. Deutsche Bank thinks this consumer-to-business payment program will increase Venmo's revenue growth and ultimately drive PayPal stock higher. (Reuters)
- Volvo joined rivals Tesla and General Motors in the electric car business, unveiling an electric sports coupe in collaboration with Chinese parent company Geely. The team also announced a $750 million investment in their new Polestar electric brand. (CNBC)
- Inside Netflix's impressive earnings report.
- The retail stock drawing a fresh batch of call buyers.
- Behind Freeport-McMoRan stock's latest downgrade.
Data courtesy of Trade-Alert
Commodities
Crude closed just a penny, or 0.02%, higher today, with November-dated oil futures ending at $51.88 per barrel. Oil prices have remained elevated amid conflicts this week in the oil-rich Kirkuk region of Iraq.
Gold fell again today to a one-week low, moving inversely to a stronger U.S. dollar. December-dated gold ended down $16.80, or 1.3%, at $1,286.20 an ounce. Meanwhile, palladium fell from the 16-year high it hit Monday.