Dow Closes Above 23K After Best Day in a Month

The DIJA, SPX and IXIC all hit record highs

Oct 18, 2017 at 4:29 PM
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The Dow Jones Industrial Average (DJIA) had another record-shattering session, closing above the 23,000 level for the first time ever -- just one day before the 30th anniversary of Black Monday. IBM stock helped propel the Dow to its best day in more than a month, as the blue chip rallied after earnings, and a surge in financial stocks ushered the S&P 500 Index (SPX) to a record high of its own. Traders also digested the Federal Reserve's Beige Book, which showed the U.S. economy expanded at a "modest to moderate" pace in September and early October.

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

  • The volatility signal flashing for the first time in almost 50 years.
  • 3 stocks that garnered new "buy" ratings.
  • PayPal stock's 11-month win streak ahead of earnings.
  • Plus, the pharma stock that hit a multi-year high; what the NAAIM survey's huge drop means for stocks; and how options traders are playing Honeywell ahead of Friday's earnings.

The Dow Jones Industrial Average (DJIA - 23,157.60) hit a record high of 23,172.93 in early trading, ending with a gain of 160.2 points, or 0.7%. While IBM led the pack of 18 Dow gainers with an 8.9% jump -- its largest one-day percentage gain ever -- Chevron (CVX) paced the 12 losers with a 1.7% drop, after being downgraded on valuation concerns.

The S&P 500 Index (SPX - 2,561.26) touched a record high of its own at 2,564.11, before closing up 1.9 points, or 0.07%. The Nasdaq Composite (IXIC - 6,624.22) also hit a record high of 6,635.52, ending up 0.6 point, or 0.01%.
 
The CBOE Volatility Index (VIX - 10.07) lost 0.2 point, or 2.3%.

Closing Indexes Summary Oct 18
NYSE and Nasdaq Stats Oct 18

5 Items on Our Radar Today

  1. Toyota recalled more than 300,000 Sienna minivans in the U.S. today, over safety concerns involving shift levers, which can transfer grease to other parts of the car and cause accidents. The carmaker plans to notify owners of affected models by mail in mid-December. (CNBC)
  2. Starting today, select Kohl's stores in Los Angeles and Chicago started selling Amazon's smart home products and accepting returns for the online commerce giant. Kohl's and Amazon announced a partnership back in September. (CNBC)
  3. The pharma stock that hit a 15-year high today.
  4. The rare sentiment signal pointing to bigger stock gains.
  5. How options traders are playing Honeywell stock ahead of earnings.


Corporate Earnings Oct 18

Unusual Options Activity Oct 18
Data courtesy of Trade-Alert

Commodities

Crude closed higher again today, as conflict in the oil-rich Kirkuk region of Iraq continues. In addition, the Energy Information Administration (EIA) reported a bigger-than-expected drop in domestic oil supplies last week. November-dated oil futures ended up 16 cents, or 0.02%, at $52.04 per barrel -- a three-week high.

Gold fell for a third day, once again in response to a strengthening U.S. dollar. December-dated gold ended down $3.20, or 0.3%, at $1,283 an ounce.

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