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Bank Stocks Boost Dow, S&P to Record Highs After GOP Tax Bill Update

The Dow and S&P closed at all-time peaks for a third straight day

Managing Editor
Dec 12, 2017 at 4:31 PM
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The Dow Jones Industrial Average (DJIA) finished with a triple-digit gain -- notching its third straight record close -- as Boeing (BA) rallied on news of a dividend hike and Goldman Sachs (GS) surged with its fellow bank stocks. Specifically, financial shares spiked after inflation data strengthened the case for the Fed to raise rates tomorrow, and as Senate Majority Whip John Cornyn suggested a Republican tax bill could come soon. This helped drive the S&P 500 Index (SPX) to a third straight record close, too, though the Nasdaq Composite (IXIC) snapped its four-day winning streak as chip stocks sold off.

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

The Dow Jones Industrial Average (DJIA - 24,504.80) finished 118.8 points, or 0.5%, higher, after notching an intraday high of 24,552.97. Goldman Sachs (GS) led 16 Dow stocks higher with its 3% win, while 3M Company (MMM) paced the 14 decliners with its 1.1% loss.

The S&P 500 Index (SPX - 2,664.11) finished 4.1 points, or 0.2%, higher, after topping out at an all-time peak of 2,669.72. The Nasdaq Composite (IXIC - 6,862.32) shed 12.8 points, or 0.2%.

The CBOE Volatility Index (VIX - 9.92) added 0.6 point, or 6.2%, to snap a five-day losing streak.

Closing Indexes Dec 12

 

NYSE Anf Nasdaq Dec 12

5 Items on Our Radar Today

  1. Bitcoin's meteoric rise has created a halo lift for its peers, with smaller cryptocurrencies ether and litecoin surging to record highs today. Plus, Coinbase.com, which trades bitcoin, was the most downloaded app in Apple's U.S. app store last week. (Bloomberg)
  2. Amid a challenging retail environment created by Amazon (AMZN), Unibail-Rodamco is slated to buy global mall operator Westfield Corp for $16 billion. The move will open up U.S. and U.K. markets to the French firm. (Reuters)
  3. Options bulls flocked to Tesla stock after Pepsi's semi truck order.
  4. VeriFone stock hopes to repeat its earnings history. 
  5. Live Nation stock could have room to run.

 

    There are no notable earnings to report.

Unusual Options Activity Dec 12
Data courtesy of Trade-Alert

Commodities

Crude slated for January delivery fell 85 cents, or 1.5%, to close at $57.14 per barrel, amid uncertainty surrounding the North Sea pipeline shutdown. The U.S. Energy Information Administration (EIA) also raised its 2018 production forecast to a record-high 10.02 million shares, though it also lifted its West Texas Intermediate price forecasts for 2017 and 2018.

February-dated gold futures lost $5.20, or 0.4%, to settle at $1,241.70 an ounce, its third straight losing session and lowest point since July 27.  The U.S. dollar and stocks rose ahead of tomorrow's Fed decision, dulling the demand for the safe-haven asset. 

 

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