Microsoft Leads 401-Point Dow Comeback
The S&P 500 snapped its lengthy losing streak as stocks roared back
Stocks bounced back in a big way today, with the Dow finishing 401 points higher thanks to a strong earnings reaction from blue-chip tech giant Microsoft (MSFT). Yesterday's steep losses were largely clawed back, as markets today rallied on a combination of positive quarterly reports and well-received economic data. The S&P 500 finally snapped its six-day losing streak, spearheaded by big gains for a pair of high-profile FAANG stocks ahead of earnings.
Continue reading for more on today's market, including:
Analyst: Buy the weakness in housing stocks.Buy LNG stock on sale. 3 stocks popping on activist investor chatter.Plus, pre-earnings skepticism toward EA; options traders flock to GLUU; and HLT gets an Ackman boost.The Dow Jones Industrial Average (DJI - 24,984.55) added 401.1 points, or 1.6%. A mere seven Dow stocks ended the day lower, with Verizon (VZ) leading the way, closing down 1.8%. On the flip side, Microsoft (MSFT) paced the 23 winners with a 5.8% burst.
The S&P 500 Index (SPX - 2,705.57) gained 49.5 points, or 1.9%, snapping its daily losing streak at six. Meanwhile, the Nasdaq Composite (IXIC - 7,318.34) jumped 209.94 points, or nearly 3%.
The Cboe Volatility Index (VIX - 24.22) shed 1 point, or 4%, for the day.
5 Items on our Radar Today
Yeti Holdings, Inc (YETI) priced its initial public offering (IPO) at $18 per share, below the company's estimated range of $19-$21. The retailer specializes in high-priced outdoor camping products such as coolers, mugs, and camping equipment. The company had previously withdrawn its IPO earlier in 2018, citing market conditions. (MarketWatch)Moody's, the famed credit rating agency, revised its outlook on the U.S. retail industry heading into the holiday season. The industry earned a "positive" rating for the first time since July 2015, and Moody's noted, "U.S retail [is]... finally starting to gain traction from investments made over the past couple of years." (Reuters)Pre-earnings skepticism ramped up on Electronic Arts stock.Options traders piled on after a sudden burst from GLUU stock.News of an Ackman stake was just one of the drivers for HLT today.
Data courtesy of Trade-Alert
Oil, Gold Manage Modest Gains as Stocks Recover
Oil futures edged higher today, recovering from early weakness to move higher alongside stocks. December-dated crude added 51 cents, or 0.8%, to settle at $67.33 per barrel.
Gold was modestly higher today, as heightened volatility in the market props up demand for the safe-haven asset. December-dated gold futures added $1.30, or 0.1%, to close at $1,232.40 per ounce.