Dow Sets the Pace for a Winning Day on Wall Street

Rumors that a policy hawk could lead the Fed gave investors pause in afternoon trading

Oct 24, 2017 at 4:37 PM
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The Dow Jones Industrial Average (DJIA) rallied sharply out of the gate this morning, thanks to strong earnings from components Caterpillar (CAT), 3M (MMM), and McDonald's (MCD). But while the Dow pushed deeper into record-high territory, upside was relatively muted for the Nasdaq Composite (IXIC), as weakness in biotech stocks (like Biogen) offset earnings-driven gains. And in the final hour of trading, the bullish momentum for equities was further dampened by rumors that policy hawk John Taylor has emerged as the front runner to be the next Fed chief.

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

  • 2 FAANG stocks analysts expect to soar.
  • Why GrubHub shorts could be sweating ahead of earnings.
  • Inside Boeing's earnings history.
  • Plus, the insurance stock that got hammered after earnings; the surprising news that sank Whirlpool shares; and the Dow stock ripe for a bullish trade.

The Dow Jones Industrial Average (DJIA - 23,441.76) touched a record high of 23,485.25, before ending with a gain of 167.8 points, or 0.7%. While 3M led the pack of 17 Dow advancers with a 5.9% gain, IBM (IBM) paced the 13 losers with a 2.3% drop.

The S&P 500 Index (SPX - 2,569.13) ended up 4.2 points, or 0.2%. The Nasdaq Composite (IXIC - 6,598.43) added 11.6 points, or 0.2%.
 
The CBOE Volatility Index (VIX - 11.16) gained 0.09 point, or 0.8%.

Closing Indexes Summary Oct 24
NYSE and Nasdaq Stats Oct 24

5 Items on Our Radar Today

  1. McDonald's announced plans to offer delivery services from 5,000 of its U.S. restaurants and 10,000 of its global locations by the end of the year. (CNBC)
  2. General Motors plans to cut its production on sedans in efforts to increase focus on making trucks and sports utility vehicles. The big-name car stock hit a record high earlier today thanks to the company's third-quarter earnings beat. (CNBC)
  3. Obamacare woes pressured insurance stock Centene after earnings.
  4. The end of a 100-year relationship sent Whirlpool stock spiraling.
  5. Why now is the time to buy call options on Dow component AXP.


Corporate Earnings Oct 24

Unusual Options Activity Oct 24
Data courtesy of Trade-Alert

Commodities

Crude prices rose again today, after Saudi Arabia affirmed its commitment to production cuts. December-dated oil futures ended up 57 cents, or 1.1%, at $52.47 per barrel.

Meanwhile, gold ended lower today, with the safe-haven asset backpedaling amid strength in equities. December-dated gold ended down $2.60, or 0.2%, at $1,278.30 an ounce.

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