Despite a strong jobs report, the Nasdaq couldn't erase its weekly deficit
The Dow Jones Industrial Average (DJIA) finished higher today, riding a stronger-than-expected jobs report to a third straight weekly win and a record closing high. Markets also cheered the signing of a short-term spending bill that postponed a government shutdown for two weeks. The S&P 500 Index (SPX) and Nasdaq Composite (IXIC) also closed in the black, although only the former was able to eke out weekly win and record-high close of its own. Elsewhere, Wall Street's fear gauge, the CBOE Volatility Index (VIX), fell to its lowest close in a month. Investors will now turn their eyes to next week's Fed meeting -- where a rate hike is widely expected -- and continue to monitor updates regarding the progress of the Republican tax bill.
Continue reading for more on today's market, including:
- Buy this blue-chip stock now, if past is prologue.
- How traders are lining up before the Bitcoin futures launch.
- Behind the Valeant stock and options spike.
- Plus, the drugmaker cutting its workforce; a big day for biotechs; and 2 hedging strategies for nervous traders.
The Dow Jones Industrial Average (DJIA - 24,329.16) finished 117.7 points, or 0.5%, higher, a new record close. For the week, the Dow gained 0.4%. Microsoft (MSFT) led 24 Dow stocks higher with its 2% win, while Coca-Cola (KO) once again paced the six decliners with its 1% loss. General Electric (GE) stock finished flat.
The S&P 500 Index (SPX - 2,651.50) finished 14.5 points, or 0.6%, higher, also a new record close. It added 0.3% for the week. The Nasdaq Composite (IXIC - 6,840.08) added 27.2 points, or 0.4%. It shed 0.1% for the week.
The CBOE Volatility Index (VIX - 9.58) lost 0.6 point, or 5.7%, falling to its lowest close since Nov. 6. The VIX shed 16.2% for the week.
5 Items on Our Radar Today
- Atlanta and other parts of the south could receive up to four inches of snowfall, sparking a flurry of airline delays and cancellations. Delta has cancelled 375 flights as Atlanta remains under a storm warning until 10:00 a.m. ET tomorrow. For some areas, it marks the earliest seasonal snowfall on record. (Bloomberg)
- In news that will surely disappoint a bevy of semiconductor makers, Elon Musk announced the electric car company was intent on developing its own customized AI hardware chips. The chips are vital to Tesla's Autopilot automated-driving function. Despite the development, Model 3 production remains months behind schedule. (Wired)
- Teva Pharmaceuticals could cut 10,000 jobs, according to reports.
- The biotech ETF testing a key technical level.
- How nervous traders can hedge with options.
Data courtesy of Trade-Alert
Commodities
Crude slated for January delivery jumped 67 cents, or 1.2%, to close at $57.36 per barrel, as tensions increased in Nigeria over a possible strike, and November Chinese crude imports rose. For the week, though, black gold lost 1.7% -- its worst week in two months.
February-dated gold futures dropped $4.70, or 0.4%, to settle at $1,248.40 an ounce, the lowest point since late July. The rising dollar and rebounding U.S. stocks lessened the demand for the safe-haven asset. For the week, gold shed 2.6% -- its third straight weekly loss and the malleable metal's worst week since May.