Energy Tailwinds Help Stocks Bounce Back

Oil rallied on OPEC buzz, snapping a five-day losing streak

May 30, 2018 at 4:23 PM
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Stocks rallied today, overcoming the political uncertainty in Europe that resulted in an almost 400-point Dow drop yesterday. Despite lackluster economic data, the Dow spent the entire day in positive territory. The blue-chip index was led by energy giants Exxon Mobil (XOM) and Chevron (CVX), as oil prices surged thanks to reports the Organization of the Petroleum Exporting Countries (OPEC) could in fact maintain current output levels. The S&P 500 and Nasdaq also had big days, while the Russell 2000 (RUT) hit another record high.

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

The Dow Jones Industrial Average (DJI - 24,667.78) ended near session highs, closing up 306.3 points, or 1.3%. Twenty-seven of 30 Dow components closed in the black, and the leaders -- XOM and CVX -- added 3.9% and 3.1%, respectively. Cisco Systems (CSCO) had the worst day, settling down 0.3%.

The S&P 500 Index (SPX - 2,724.01) added 34.2 points, or 1.3%, and the Nasdaq Composite (IXIC - 7,462.45) climbed 65.9 points, or 0.9%.

The Cboe Volatility Index (VIX - 14.94) lost 2.1 points, or 12.2%, but held above its 20-day moving average.

Closing Indexes Summary May 30

NYSE and Nasdaq May 30

5 Items on Our Radar Today

  1. The Federal Reserve today proposed a change to the Volcker Rule, which stops large banks from trading for profit. The new proposal is supposedly meant to cut requirements for financial firms that do less trading. (CNBC)
  2. President Trump today signed what's being called the "right to try" bill, giving terminally ill patients access to treatments not yet approved by the Food and Drug Administration (FDA). At the signing Trump also suggested some drug companies could soon voluntarily lower drug prices. (The HillReuters)
  3. These discount retailers will head to the earnings confessional.
  4. Lululemon stock could hit new highs by Friday.
  5. The Model 3 update that lifted Tesla stock.

Corporate Earnings Chart May 30

Unusual Options Activity May 30

Data courtesy of Trade-Alert

Oil Prices Explode on OPEC Buzz

Oil roared higher on today's OPEC production-cap reports, snapping a five-session losing streak. July-dated crude futures finished up $1.48, or 2.2%, at $68.21 per barrel.

Gold also gained today, thanks mostly to a weaker dollar. August-dated gold was up $2.40, or 0.2%, at $1,306.50 per ounce by the close.

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