Stocks Extend Impressive Gains After Dovish Fed

Oil climbed after data showed a smaller-than-expected rise in U.S. crude supplies

by Karee Venema

Published on Jan 30, 2019 at 4:32 PM

The Dow jumped triple digits out of the gate on positive earnings reactions for Apple (AAPL) and Boeing (BA). Buyers flooded the S&P 500 and Nasdaq, too, after strong earnings from chipmaker Advanced Micro Devices (AMD) and upbeat jobs data. However, bulls really kicked it into high gear after the mid-afternoon Fed announcement showed the central bank unanimously voted to keep interest rates unchanged. Plus, the Fed said it will "be patient" with future rate hikes and suggested in a separate statement it could alter the shrinking of its balance sheet, given "economic and financial developments."

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

  • February's hottest stocks.
  • The Brazil news that sent Cleveland-Cliffs to the top of the Big Board.
  • Amazon call options are popular ahead of earnings.
  • Plus, 2 retail stocks for bears; Visa's pre-earnings bull signal; and one pharma stock's worst day ever.

The Dow Jones Industrial Average (DJI - 25,014.86) closed above 25,000 for the first time since Dec. 4, adding 434.9 points, or 1.8%. Apple (AAPL) and Boeing (BA) paced the 27 Dow advancers, tacking on 6.8% and 6.3%, respectively. Walmart (WMT) led the three decliners with its 2% drop.

The S&P 500 Index (SPX - 2,681.05) jumped 41.1 points, or 1.6%, while the Nasdaq Composite (IXIC - 7,183.08) climbed 154.8 points, or 2.2%.

The Cboe Volatility Index (VIX - 17.66) slumped 1.5 points, or 7.7%, to settle back below its 120-day moving average.

Closing Indexes Jan 30

NYSE and Nasdaq Jan 30

5 Items on our Radar Today

  1. The European Union (EU) is reportedly considering excluding Chinese tech firms from 5G technology expansion, which could require possibly amending the language of a 2016 cybersecurity law. The talks are said to be in the early stages, and follow U.S. accusations of spying against Chinese telecom giant Huawei. (Reuters)
  2. Apple has accused Facebook (FB) of violating its policies, saying the social media site paid users to download a data-collecting app. The iPhone maker revoked Facebook's "enterprise certificates," and said in a statement this is a "clear breach of their agreement." A FB spokesperson replied, saying the app had a "clear on-boarding process." (CNBC)
  3. Bears could cash in on these 2 retail stocks.
  4. Visa flashed a bullish technical signal ahead of tonight's earnings report.
  5. This pharma stock just had its worst day ever.

Corporate Earnings Jan 30

Unusual Options Activity Jan 30

Data courtesy of Trade-Alert

Gold Extends Gains After Fed Decision

Oil prices jumped after data from the Energy Information Administration (EIA) showed domestic crude inventories rose by a smaller-than-expected 900,000 barrels last week. Crude for March delivery gained 92 cents, or 1.7%, to settle at $54.23 per barrel.

Gold brought its daily win streak to four, with the April contract edging up 30 cents to close at $1,315.50 an ounce. The most active gold contract continued to climb after the Fed announcement, last seen at $1,322.20 an ounce in electronic trading.

Streaming Stock Sees a Pre-Earnings Lift
Roku stock is well into overbought territory
2 Energy Stocks That Could Fizzle
Crude oil prices are flirting with YTD highs, but these stocks could dip
What to Make of Rising Analyst Buy Ratings
The percentage of "buy" ratings on SPX stocks just surpassed the 2014 peak
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