Dow Adds 547 Points as Earnings Drive Stock Gains

Oil pushed higher as Saudi Arabia and Kuwait remained at odds

Managing Editor
Oct 16, 2018 at 4:31 PM
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U.S. stocks closed significantly higher in today's trading, with bullish sentiment stoked by impressive corporate earnings. Specifically, a strong post-report rally from UnitedHealth (UNH) helped send the Dow more than 567 points higher at its intraday peak, while traders also cheered results from big-cap names like Goldman Sachs (GS) and Johnson & Johnson (JNJ). Big earnings moves could continue to be a theme tomorrow, with results from Netflix (NFLX) and IBM (IBM) hitting the Street after tonight's closing bell.

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

  • Founder and CEO Bernie Schaeffer calls out the major VXX moving average that just jumped back into play.
  • Analysts expect an earnings surprise from PayPal.
  • The fracking stock with massive call volume.
  • Plus, bet on a bounce for Lowe's; 2 stocks drilled after earnings; and a steel stock breakdown.

The Dow Jones Industrial Average (DJI - 25,798.42) surged 547.9 points, or 2.2%, for the day. All 30 Dow stocks closed in the black, with UNH as the top performer, finishing up 4.7%. Meanwhile, Verizon (VZ) picked up just 0.2%.

The S&P 500 Index (SPX - 2,809.92) added 59.1 points, or 2.2%, while the Nasdaq Composite (IXIC - 7,645.49) rose 214.8 points, or 2.9%, on the day.

The Cboe Volatility Index (VIX - 17.62) lost 3.7 points, or 17.3%, for the day. The VIX notched its third consecutive close below the crucial 21.70-22.50 area.

Closing Indexes Summary Oct 16

NYSE and Nasdaq Stats Oct 16

5 Items on our Radar Today

  1. Uber rival Lyft today announced its new 30-day riding subscription, which allows up to 30 free rides of up to $15 each (or more at a discounted rate) for $299 per month. The program is called the All-Access Pass, and the company said it is "the first step toward... making car ownership optional." (CNBC)
  2. Another noteworthy launch today comes from Kroger (KR), which revealed that within the past week, it had begun delivering wine through a partnership with Drinks, an online winery site. The service is available in 14 states, including Florida and California. (MarketWatch)
  3.  Why you should bet on a Lowe's stock bounce.
  4.  Domino's and BlackRock stocks fell despite earnings beats.
  5. Steel Dynamics breached crucial chart support ahead of earnings.

Corporate Earnings Oct 16

Unusual Options Activity Oct 16

Data courtesy of Trade-Alert

Gold Ends at 2-Month High

Oil moved higher as talks collapsed between Saudi Arabia and Kuwait regarding the restarting of production in the the "neutral zone" oil fields. November-dated crude futures added 14 cents, or 0.2%, to close at $71.92 per barrel.

Gold futures remained little changed, as investors continued to seek refuge in the precious metal amid a continuously volatile market. December-dated gold added 70 cents, or 0.06%, to close at $1,231 per ounce -- its highest finish since July 31.

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