The Dow soared triple digits on tax-reform hopes
The Dow Jones Industrial Average (DJIA), S&P 500 Index (SPX), and the Nasdaq Composite (IXIC) each touched record highs today, as a new budget plan passed by the Senate fueled optimism about tax reform. Traders also considered President Trump's comments on who will head the central bank after Fed Chair Janet Yellen's term is up, with Trump specifically naming Yellen, Fed Governor Jerome Powell, and Stanford economist John Taylor. Later tonight, Yellen is scheduled to speak on monetary policy.
Meanwhile, even General Electric (GE) stock got in on the rally, rebounding from a two-year low to end the session higher, despite the blue chip's lackluster earnings report. Led by a rally in bank and tech stocks, the Dow and S&P both extended their daily and weekly win streaks to six -- the Dow's longest of the year, and the SPX's longest since the first quarter.
Continue reading for more on today's market, including:
- The stock market is blazing its hottest streak in four years.
- How options traders are playing Kimberly-Clark stock ahead of earnings.
- Analyst: The retail stock that will survive the Amazon explosion.
- Plus, how to buy the right option; the tech stock that exploded today; and 2 stocks that tanked after earnings.
The Dow Jones Industrial Average (DJIA - 23,328.63) ended within a point of its new record high, with a gain of 165.6 points, or 0.7%. While Boeing (BA) led the pack of 27 Dow gainers with a 2.2% gain, Procter & Gamble (PG) paced the 3 losers with a 3.6% drop after earnings. For the week, the Dow gained 2%.
The S&P 500 Index (SPX - 2,575.21) hit a record high of its own at 2,575.44, before ending up 13.1 points, or 0.5%. The Nasdaq Composite (IXIC - 6,629.05) touched an all-time peak of 6,640.03, and ended up 24 points, or 0.4%. The SPX and IXIC added 0.8% and 0.4%, respectively, for the week.
The CBOE Volatility Index (VIX - 9.97) lost 0.1 point, or 0.8%. For the week, the VIX gained 3.7%.
5 Items on Our Radar Today
- Snapchat parent Snap slashed 18 jobs from its recruiting unit and said it will slow hiring in 2018 due to the stock's recent price action, with SNAP stock trading below its IPO price of $17 since July. (CNBC)
- Speaking of job cuts, Merck announced it will cut 1,800 sales jobs in efforts to restructure its U.S. team. The drugmaker also plans to add 960 positions to create a new chronic care sales force that focuses on treatments for diabetes, sleep, respiratory conditions, and women's health. (CNBC)
- Understanding in-, at-, and out-of-the-money options.
- The tech stock that exploded to a two-year high today.
- 2 stocks that tanked after earnings.
Data courtesy of Trade-Alert
Commodities
Crude ended higher today, after trading flat most of the day. Oil prices were pushed higher thanks to reports of declining Iraqi exports, and after the number of active U.S. oil rigs declined for a third straight week. November-dated oil futures ended up 18 cents, or 0.4%, at $51.47 per barrel. Black gold ended the week just 2 cents higher.
Gold closed lower, as hopes of a U.S. tax reform boosted the dollar, and traders' appetite for riskier assets. December-dated gold ended down $9.50, or 0.7%, at $1,280.50 an ounce. For the week, gold dropped 1.9% -- its steepest weekly drop in about a month.