Dow Wins Fourth Straight as VIX Sinks

Wall Street's "fear gauge" hit its lowest point in over two months

Managing Editor
Jan 16, 2020 at 4:33 PM
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The Dow roared to a fourth straight win and new record high today, thanks to upbeat retail sales and jobs data. The blue-chip index's over 200-point win can also be attributed to the details of the newly signed "phase one" trade deal with China, where it was revealed China could purchase nearly $200 billion more in U.S. goods in the coming years.

The S&P 500 and Nasdaq both finished comfortably in the black after hitting record highs as well, as the former crossed the 3,300 level for the first time. Against this positive backdrop, Wall Street's "fear gauge," the Cboe Volatility Index (VIX), logged another loss.

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

  • Red-hot Tesla stock was just downgraded.
  • Options traders blasted Fastenal stock ahead of earnings. 
  • Plus, a steel stock to target; Campbell Soup's buy signal; and an upgrade for IRBT.

The Dow Jones Industrial Average (DJI - 29,297.64) gained 267.4 points, or 0.9%. Cisco Systems (CSCO) led the 26 winners with a 1.7% win, while Pfizer (PFE) paced the four laggards with a 0.7% drop.

The S&P 500 Index (SPX - 3,316.81) added 27.5 points, or 0.8%, while the Nasdaq Composite (IXIC - 9,357.13) finished 98.4 points, or 1.1%, higher.

The Cboe Volatility Index (VIX - 12.32) lost 0.1 point, or 0.8%.

closing indexes summary jan 16

nyse and nasdaq stats jan 16

5 Items on Our Radar Today

  1. Hyundai and Kia are expanding their involvement with electric vehicles. Kia and Hyundai are both investing a total of 100 million euro in U.K. startup Arrival Ltd, a startup that makes battery-powered delivery vans. The vans will be sold at the start of 2021. (Reuters)
  2. The Senate approved the U.S.-Mexico-Canada Agreement today, sending the trade pact to President Donald Trump's desk. The deal replaces the North American Free Trade Agreement, and new trading rules among the North American countries. (MarketWatch)
  3. Buy the dip on this steel stock
  4. Here's how a Campbell Soup call could double.
  5. iRobot stock just picked up a big upgrade.

corporate earnings jan 16

unusual options activity jan 16

Data courtesy of Trade-Alert

Gold Extends Slide as Stocks Surge

Oil logged solid gains today, as U.S energy demand got a boot from the newly Senate-approved USMCA trade agreement. February-dated crude futures added 71 cents, or 1.2%, to end at $58.82 per barrel.

Gold prices took a hit today, as the demand for safe-haven assets softened amid surging U.S. equities. February gold futures gave back $3.50, or 0.2%, to end at $1,550.50 an ounce.

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