Stocks Finish Higher; Fed Warns on Trade

Oil prices slipped after an unexpected jump in domestic inventories

Managing Editor
Jul 5, 2018 at 4:24 PM
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U.S. stocks finished the day higher, shrugging off both an ADP payrolls miss and a warning on trade from the Fed. According to the newly released minutes from the June Federal Open Market Committee (FOMC) meeting, "Most participants noted that uncertainty and risks associated with trade policy had intensified and were concerned that such uncertainty and risks eventually could have negative effects on business sentiment and investment spending." However, ahead of Friday's jobs report and the implementation of tariffs on $32 billion in Chinese goods, traders took their bullish cues from reports of a possible U.S.-EU auto tariff truce.

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

  • 2 retail stocks set to rally.
  • A major buying opportunity on Micron stock.
  • Plus, Facebook's latest bull note; the healthcare stock set to soar; and a big post-holiday cooldown for crude oil.

The Dow Jones Industrial Average (DJI - 24,356.74) finished up 181.9 points, or 0.8%. Walgreens (WBA) paced the 28 gainers with a 2.7% advance, while Chevron (CVX) took the biggest loss of 0.6%.

The S&P 500 Index (SPX - 2,736.61) settled 23.4 points, or 0.9%, higher. The Nasdaq Composite (IXIC - 7,586.43) also managed a modest gain and finished up 83.8 points, or 1.1%.

The Cboe Volatility Index (VIX - 14.97) shed 1.2 points, or 7.3%, to notch its lowest daily close since June 22.

Closing Indexes Summary July 5

NYSE and Nasdaq Stats July 5

5 Items on Our Radar Today

  1. Scott Pruitt, the scandal-plagued head of the Environmental Protection Agency (EPA), resigned his post today, according to a tweet from President Donald Trump. Pruitt, who is the subject of 13 federal inquiries, was described by Trump as having done an "outstanding job." (Twitter; The Hill)
  2. Tesla (TSLA) CEO Elon Musk is back in the headlines today, with the electric car exec criticizing media coverage of his company in a Twitter rant. Musk's remarks come amid a brutal week for Tesla stock, despite the automaker meeting a self-imposed Model 3 production goal during the final week of the second quarter. (CNBC)
  3. Facebook stock received an ambitious price target.
  4. Healthcare stock ALGN could soar in the third quarter, if history is any indicator.
  5. Why stock volatility could surge in the second half, per Schaeffer's Senior Quantitative Analyst Rocky White.

There are no earnings of note today.

Unusual Options Activity July 5

Data courtesy of Trade-Alert

Crude Falls on Inventory Jump

Oil futures ended today's session lower, after the Energy Department reported a surprise 1.2 million-barrel increase in domestic supplies last week. August-dated crude finished down $1.20, or 1.6%, at $72.94 a barrel.

Gold futures finished higher for the second day in a row as the U.S. dollar weakened, but pared some of its gains in electronic trading as investors digested the Fed's meeting minutes. Gold for August delivery settled up $5.30, or 0.4%, at $1,258.80 per ounce.

 

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