Stocks Surge on U.S.-China Trade Optimism
The Dow has now logged back-to-back triple-digit gains
The Dow nabbed its second straight triple-digit gain today on renewed trade optimism. Stocks roared out of the gate on U.S.-China trade tailwinds, after representatives from both sides confirmed a tentative early October meeting. This led to the blue-chip index's best single-session percentage gain since Aug. 13, with trade-sensitive Caterpillar (CAT) helping lead the charge. Elsewhere, the S&P 500 and Nasdaq also turned in their best days since mid-August, while Wall Street's "fear gauge" -- the VIX -- earlier fell to its lowest level in over a month.
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Signal says transportation stock has room to run.Lululemon options traders targeted this level ahead of earnings.Buy calls to bet on an Enphase Energy stock bounce.Plus, 2 stocks that slipped after earnings; a biotech bear signal; and behind Mallinckrodt's big collapse.The Dow Jones Industrial Average (DJI - 26,728.15) recorded a 372.7-point, or 1.4%, gain. International Business Machines (IBM) had the best day of the 26 blue-chip gainers, finishing up 3.4%, while Coca-Cola (KO) led the four Dow laggards with its 1.2% drop.
The S&P 500 Index (SPX - 2,976.00) added 38.2 points, or 1.3%, while the Nasdaq Composite (IXIC - 8,116.83) closed up 139.9 points, or 1.8%.
The Cboe Volatility Index (VIX - 16.27) shed 1.1 points, or 6.1%.
5 Items on our Radar Today
The Institute for Supply Management reported the U.S. services sectorgrew at a quicker-than-expected pace in August. Wholesale trade was the lone service industry out of the 16 tracked that showed a decrease in growth last month, and services industry employment fell to its lowest level since March 2017. (Reuters)A day after making headlines for adding a woman to its currently all-male board, The We Company, which owns WeWork, slashed its initial public offering (IPO) valuation to less than $25 billion, and may delay its IPO. WeWork previously raised money at a $47 billion valuation in the private market. (CNBC)Slack and At Home both turned dismal quarterly reports today.Puts on this biotech stock could double, signal says.Bankruptcy buzz spelled new lows for Mallinckrodt stock today.
Data courtesy of Trade-Alert
Gold Logs Worst One-Day Drop In Over A Year
Oil prices finished higher today, but pared most of their gains by settlement. While a weekly drop in U.S. crude inventories propped up black gold at first, gains were whittled away as the day went on. October-dated crude futures added 4 cents, or 0.07%, to settle at $56.30 per barrel.
Gold pulled back sharply today, as investors' appetite for stocks dulled demand for the safe-haven asset. Gold for December delivery closed down $34.90, or 2.2%, to settle at $1,525.50 an ounce -- the metal's worst percentage decline in over a year, and largest daily dollar loss since late 2016.