Dow Rallies to Fourth Straight Win With Oil Prices
The Fed minutes underscored a dovish take toward future rate hikes
Stocks soared today on lingering trade tailwinds, while a relatively dovish tone in the December Fed meeting minutes only strengthened bulls' resolve into the close. Traders also watched as oil prices surged back above the $50 per barrel mark for the first time since mid-December, while Apple (AAPL) climbed to the top of the Dow, despite an iPhone production cut. By the close, the Dow, Nasdaq, and S&P were all higher for a fourth straight day -- the latter's longest daily win streak since September.
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This weed stock was hot after a fresh "buy" rating.2 bank stocks to watch during the D.C. shutdown.Crocs options volume popped as the retail stock hit new highs.Plus, more on those Fed minutes; a surging Chinese car stock; and 2 downgraded travel stocks.The Dow Jones Industrial Average (DJI - 23,879.12) tacked on 91.7 points, or 0.4%. Apple led 19 Dow stocks higher with its 1.7% gain, while Coca-Colo (KO) paced the 11 decliners with its 1.9% drop.
The S&P 500 Index (SPX -2,584.96) added 10.6 points, or 0.4%, while the Nasdaq Composite (IXIC - 6,957.08) rose 60.1 points, or 0.9%.
The Cboe Volatility Index (VIX - 19.98) fell 0.5 point, or 2.4%, but found support at its 80-day moving average.
5 Items on our Radar Today
The minutes from the Federal Open Market Committee's (FOMC) December meeting showed dissent among voting members, despite a unanimous vote to raise the Fed's benchmark interest rate last month. Specifically, the minutes showed several supported holding off on the policy shift to see how the economy reacted to recent volatility, noting that tame inflation allows the central bank "to be patient about further policy firming." (Bloomberg)Fitch Ratings said an extended U.S. government shutdown puts the country's AAA credit rating at risk. The ratings agency said an ongoing shutdown could create "meaningful fiscal deterioration," and that it's "the debt ceiling that's problematic." (Washington Post)A rally off recent lows has alarm bells ringing for this tech stock.This China-based Tesla rival just had its best day in years.2 downgraded travel stocks.
Data courtesy of Trade-Alert
Oil Reclaims $50 Per Barrel Mark After EIA Data
Oil extended its win streak to an eighth day, after data from the Energy Information Administration (EIA) showed U.S. crude inventories declined by a larger-than-expected amount last week. February-dated crude rose $2.58, or 5.2%, to close at $52.36 per barrel.
February-dated gold futures settled up $6.10, or 0.5%, at $1,292 per ounce ahead of the release of the Fed minutes. The contract continued to climb in electronic trading, after signs of a divided central bank put pressure on the U.S. dollar.