Dow Snaps Losing Streak as Bank Stocks Surge
It was a roller-coaster session for the Dow Jones Industrial Average (DJIA), with the index ultimately surging higher in afternoon trade to snap a four-day losing streak. Stocks responded to the release of the Trump administration's tax plan, which calls for a 20% corporate tax rate. The financial sector also continued to rally, helping the Dow overcome Nike's post-earnings pullback and guiding the S&P 500 Index (SPX) and Nasdaq Composite (COMP) higher. It was the Russell 2000 Index (RUT) that had the best day, however, as a surge in small-cap stocks pushed the index to an all-time high, marking its best session since March.
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The Dow Jones Industrial Average (DJIA - 22,340.71) explored both sides of breakeven, but eventually settled up 56.4 points, or 0.3%. Sixteen of 30 Dow stocks closed higher, led by United Technologies' 2.1% rise. Verizon closed flat, while General Electric had the worst day, losing 2.2%.
The S&P 500 Index (SPX - 2,507.04) jumped 10.2 points, or 0.4%, hitting a record high of 2,511.75 in the process. The Nasdaq Composite (COMP - 6,453.26) closed up 73.1 points, or 1.2%.
The CBOE Volatility Index (VIX -9.87) fell below 10 again, givnig up 0.3 point, or 3%.
5 Items on Our Radar Today
Talking with reporters today, President Trump said he isn't happy with Health and Human Services Secretary Tom Price, under fire for his use of taxpayer-funded private jets When asked if he'll fire Price, Trump said he's looking "very closely" at the possibility. (Bloomberg) According to Reuters, music streaming service Spotify is now being valued at roughly $16 billion. This is a $3 billion increase since June, and Spotify is projected to boast a more than $20 billion market cap when the company finally goes public. (Reuters)The software stock surging on Amazon tailwinds. One solar stock in analysts' bearish crosshairs. An ETF that could surge in the fourth quarter.
Data courtesy of Trade-Alert
Commodities
Oil prices ticked higher today, thanks to news thatdomestic crude inventories surprisingly fell during the past week. November-dated crude futures added 26 cents, or 0.5%, to settle at $52.14 per barrel.
Gold edged lower today as stocks and the dollar gained. Gold set for December delivery finished down $13.90, or 1.1%, to end at $1,287.80 per ounce.