Dow Swings to Triple-Digit Gain, 4th Straight Win

The Nasdaq is pacing for its best week since July 2015

Feb 14, 2018 at 4:28 PM
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The Dow kicked off the session with a triple-digit deficit, as hotter-than-expected inflation data stoked fears of an accelerated pace of Fed rate hikes. In addition, Wall Street digested a surprise 0.3% decline in January retail sales -- the biggest drop in almost a year. Nevertheless, the recent stock market roller-coaster ride continued, with the Dow swinging to a triple-digit gain by the close, with help from a rally in rate-sensitive bank stocks. A surge in tech stocks also helped the major market indexes reverse higher, with the Dow, S&P, and Nasdaq all notching a fourth straight win. In fact, the Dow and SPX are pacing for their best week since late 2016, while the tech-rich Nasdaq is eyeing its biggest weekly gain since July 2015.

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

  • Buy puts on this Apple supplier, if history is any indicator.
  • The biotech stock barreling higher on groundbreaking drug data.
  • Options traders are expecting a huge earnings move for this cybersecurity stock.
  • Plus, 2 travel stocks to trade right now; Chipotle's changing of the guard; and the retailer that could edge higher next week. 

The Dow Jones Industrial Average (DJI - 24,893.49) explored a range of nearly 436 points, but ultimately settled with a gain of 253 points, or 1%, to top its 10-day moving average for the first time since Jan. 29. Nike (NKE) led the 24 advancing Dow stocks, up 3.2%, while McDonald's (MCD) paced the five losers with a 1.5% drop. Merck (MRK) stock finished flat.

The S&P 500 Index (SPX - 2,698.63) added 35.7 points, or 1.3%, by the close. The Nasdaq Composite (IXIC - 7,143.62) gained 130.1 points, or 1.9%, for its sixth triple-digit move in nine sessions. Both the SPX and IXIC topped their own 10-day trendlines for the first time since late January.

The CBOE Volatility Index (VIX - 19.26) fell for a fourth straight day, surrendering 5.7 points, or 22.9%. The "fear gauge" marked its first close south of 20 since Feb. 2, but found support atop its 20-day moving average.

Closing Indexes Summary Feb 14

NYSE and Nasdaq Stats Feb 14

5 Items on Our Radar Today

  1. Valentine's Day spending will near a record high this year, according to the National Retail Federation (NRF). An estimated $19.6 billion will be spent on the romantic holiday in the U.S., with the average consumer shelling out $143.56 on dinner, jewelry, candy, and other gifts. (Fox Business)
  2. While he can't discuss the details publicly, Rep. Adam Schiff -- a former federal prosecutor and the senior Democrat on the House Intelligence Committee -- stated that there is "ample evidence" of collusion between Russia and the Trump campaign. Still, he conceded that it's "for Bob Mueller to decide" whether there is proof beyond a reasonable doubt.  (USA Today)
  3. Seasonality suggests it's a prime time to trade these 2 travel stocks.
  4. The C-suite news that sent Chipotle (CMG) shares soaring.
  5. Why Target (TGT) stock could muscle higher next week.

Corporate Earnings Feb 14

Unusual Options Activity Feb 14

Data courtesy of Trade-Alert

Oil Prices Bounce After U.S. Inventories Report

Oil prices shook off early losses to end higher, thanks to a smaller-than-anticipated increase in domestic crude inventories last week. By the close, March-dated oil futures were up $1.41, or 2.4%, at $60.60 per barrel.

Gold futures also swung higher from an early deficit, capitalizing on their appeal as an inflationary hedge. Gold for April delivery gained $27.60, or 2.1%, to finish at $1,358 an ounce -- the malleable metal's highest close in almost three weeks.

 

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