Stocks Close Higher on Merger News, Rising Oil Prices

Sprint ended merger talks with T-Mobile, while Broadcom made a buyout bid for Qualcomm

Nov 6, 2017 at 4:26 PM
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The Dow Jones Industrial Average (DJIA), S&P 500 Index (SPX), and Nasdaq Composite (IXIC) each touched record highs today, even as telecom stocks sank after Sprint (S) ended merger talks with T-Mobile (TMUS). Instead, traders cheered takeover chatter in the chip sector, after Broadcom (AVGO) made an unsolicited $103 billion buyout bid for Qualcomm (QCOM), and energy stocks rallied with oil prices. Traders also digested news that New York Fed President William Dudley is retiring six months early next year, a decision which follows President Trump's Thursday nomination of Fed Governor Jerome Powell to succeed current Fed Chair Janet Yellen. Meanwhile, rumors circulated that Trump prepared an executive order that would eliminate Obamacare's individual mandate, which requires Americans without health coverage to pay tax penalties.

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

  • Did the Santa Claus rally come early this year?
  • The oil ETF that options bulls blasted today.
  • A look at Take-Two Interactive Software stock ahead of earnings.
  • Plus, 2 cruise stocks to watch this week; inside Snap's earnings history; and the drug stock that could quintuple.

The Dow Jones Industrial Average (DJIA - 23,548.42) touched a record intraday high of 23,574.86, and ended with a gain of 9.2 points, or 0.04%. Walt Disney (DIS) led the 12 Dow gainers with a 2% advance, while Verizon (VZ) paced the 18 losers with a 4% drop.

The S&P 500 Index (SPX - 2,591.13) hit a record high of its own at 2,593.38, before closing up 3.3 points, or 0.1%. The Nasdaq Composite (IXIC - 6,764.44) touched an all-time high of 6,790.67, and ended with a gain of 22 points, or 0.3%.
 
The CBOE Volatility Index (VIX - 9.40) added 0.3 point, or 2.8%.

Closing Indexes Summary
NYSE and Nasdaq Nov 6

5 Items on Our Radar Today

  1. 21st Century Fox reportedly held talks to sell a majority of its company to Walt Disney in order to focus solely on news and sports, as the company's senior management believes it cannot compete with the changing media landscape. (CNBC)
  2. Facebook users outside of the U.S. will be able to send money to friends using the app's messenger texting within the next few weeks -- two years after the social media site enabled U.S. users to send cash over Messenger. (Bloomberg
  3. 2 cruise stocks to watch this week.
  4. How options traders are playing Snap stock ahead of earnings.
  5. Analyst: This drug stock could quintuple.


Corporate Earnings Chart November 6

Unusual Options Activity November 6
Data courtesy of Trade-Alert

Commodities

Crude prices settled at their highest level since July 2015, after Saudi Crown Prince Mohammed bin Salman ordered several high-level arrests. December-dated oil futures ended up $1.71, or 3.1%, at $57.35 per barrel -- black gold's best day in nearly a year.

Gold also closed higher in response to geopolitical risk, which caused investors to latch onto safe-haven assets. A drop in the U.S. dollar also helped boost gold. December-dated gold ended up $12.40, or 1%, at $1,281.60 an ounce -- its best session in over a month.

What This Election Year Means for Stocks

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