Boeing popped on positive trade headlines, while subscriber growth boosted Verizon
Positive U.S.-China trade headlines fueled a risk-on session today, with negotiators extending talks to a third day. The Dow climbed 256 points, boosted by a strong gain for trade-sensitive stock Boeing (BA). Verizon (VZ) also created tailwinds for the blue-chip index, thanks to impressive subscriber growth. This helped offset struggling bank stocks and anxiety surrounding tonight's prime-time appearance from President Donald Trump, who is expected to address funding for a border wall as the partial government shutdown heads toward a 19th day.
Continue reading for more on today's market, including:
- The best stocks to own during a government shutdown.
- Bed Bath & Beyond stock flashes warning signs before earnings.
- Why Procter & Gamble stock could keep climbing.
- Plus, time to take profits on Clovis Oncology; one chip stock swings lower; and this weed stock soared on a bull note.
The Dow Jones Industrial Average (DJI - 23,787.45) was up 333 points at its intraday peak before settling with a 256.1-point, or 1.1%, gain. Twenty-six Dow stocks closed higher, led by a 3.8% pop for Boeing. On the losing side, Travelers (TRV), Goldman Sachs (GS), and Chevron (CVX) shed 0.4% apiece, while JPMorgan Chase (JPM) gave back 0.2%.
The S&P 500 Index (SPX - 2,574.41) tacked on 24.7 points, or 1%, while the Nasdaq Composite (IXIC - 6,897.00) added 73.5 points, or 1.1%.
The Cboe Volatility Index (VIX - 20.47) found support near its 80-day moving average, paring its loss to 0.9 point, or 4.4%.
5 Items on our Radar Today
- The shares of Sears Holdings were down 50% at their session low today, after the embattled retailer's independent board of directors rejected a $4.4 billion buyout bid from Chairman and CEO Eddie Lampert's hedge fund, ESL Investments. However, the penny stock was up 30% at the close, on news a bankruptcy judge approved a potential $121 million lifeline. (MarketWatch)
- BP said it discovered 1 billion barrels of oil at its Thunder Horse field and 400,000 barrels at its Atlantis field in the Gulf of Mexico. The energy firm also said it will spend $1.3 billion to develop the next phase at the latter site, with production expected to begin in 2020. (CNBC)
- History suggests it's time to take profits on Clovis Oncology.
- This chip stock erased early gains after running into familiar resistance.
- This weed stock soared almost 16% after a bull note at Cowen.
Data courtesy of Trade-Alert
Oil Climbs on OPEC Output Cuts
Oil closed higher for a seventh straight day -- its longest daily win streak since July 2017 -- after data showed oil production from the Organization of the Petroleum Exporting Countries (OPEC) hit a six-month low in December. February-dated crude rose $1.26, or 2.6%, to settle at $49.78 per barrel.
Gold prices were pressured today by a surging stock market and strengthening U.S. dollar. At the close, gold for February delivery was down $4, or 0.3%, at $1,285.90 an ounce.