Dow Tops 25K; Russell 2000 Hits Another High

Caterpillar and GE had big days

May 21, 2018 at 4:26 PM
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The Dow rallied today, gaining roughly 300 points and topping the 25,000 level for the first time since mid-March. Stocks reacted to Treasury Secretary Steve Mnuchin's comments that the trade war with China is "on hold" for the moment, news that resulted in big days from names like Caterpillar (CAT) and Boeing (BA). Fellow blue chip General Electric (GE) also rallied on the heels of an $11 billion M&A deal, while another strong showing from semiconductor and energy stocks guided the S&P and Nasdaq to wins, as well. But like last week, the Russell 2000 Index (RUT) may be the index to watch, with the small-cap barometer hitting record highs for a fourth straight session.

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

  • This pharma stock buy signal has never been wrong.
  • Wedbush thinks Turtle Beach, up 800% this year, can go higher.
  • Citron tweet sent put traders to this e-commerce stock.
  • Plus, the retailer attracting pre-earnings option players; Snap gets upgraded; and a big Tesla price-target hike.

The Dow Jones Industrial Average (DJI - 25,013.29) jumped 298.2 points, or 1.2%. BA had the best day of the 28 Dow components that closed higher, adding 3.6%, and Merck (MRK) and Johnson & Johnson (JNJ) were the two losers, giving back 1% and 0.4%, respectively.

The S&P 500 Index (SPX - 2,733.01) added 20 points, or 0.7%, and the Nasdaq Composite (IXIC - 7,394.04) gained 39.7 points, or 0.5%.

The Cboe Volatility Index (VIX - 13.08) fell 0.3 point, or 2.5%.

Closing Indexes Summary May 21

NYSE and Nasdaq May 21

5 Items on Our Radar Today

  1. Goldman Sachs said it believes the fiscal outlook in the U.S. is "not good." The financial giant cited a growing deficit and government debt in light of the recent tax overhaul, which could make it difficult for Congress to act and stabilize the economy during a recession. (CNBC)
  2. Weeks after pulling out of the Iran nuclear deal, the Trump administration threatened "the strongest sanctions in history" on Iran, should it not meet a number of demands. For example, the White House is asking Iran to drop its nuclear program. (Reuters)
  3. Options traders flocked to Kohl's ahead of tomorrow's earnings release.
  4. Why one analyst thinks Snap stock may have bottomed.
  5. Tesla just got its highest price target on Wall Street.

Unusual Options Volume May 21

Data courtesy of Trade-Alert

Oil Prices Tick Higher on Sanction Buzz

Oil prices gained again today, amid talks of more sanctions on Iran and Venezuela, the latter of which just wrapped up an election many are calling a farce. Crude for June delivery was up 96 cents, or 1.4%, by the close to settle at $72.24 per barrel -- a new three-year high.

Gold prices ended lower today, but managed to pare some of their early losses. After touching a new year-to-date low earlier, June-dated gold futures finished down 40 cents, or 0.03%, at $1,290.90 per ounce.


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