FAANG Stocks, Earnings Fuel Gains on Wall Street
Big-cap earnings reactions created tailwinds for stocks
Stimulus buzz out of China and strong day for FAANG stocks boosted the broader equities market today. Positive earnings reactions for UnitedHealth (UNH) and JPMorgan Chase (JPM) only created bigger tailwinds -- and put Bank of America (BAC) options bears on notice ahead of the financial firm's quarterly results tomorrow morning. This helped offset a soft inflation reading and uncertainty surrounding a failed Brexit vote in the U.K., with the Dow, S&P 500, and Nasdaq all notching their highest closes in a month.
Continue reading for more on today's market, including:
New Age Beverages call options were hot ahead of tomorrow's key event.Analyst: This biopharma could surge 76%.Founder and CEO Bernie Schaeffer breaks down the volatile expiration week trading range for chip stocks.Plus, 2 retail stocks to short; one penny stock's massive move; and why Starbucks has room to run.The Dow Jones Industrial Average (DJI - 24,065.59) finished near its session high, up 155.8 points, or 0.7%. Twenty-three Dow stocks gained ground, led by UnitedHealth's 3.6% pop. 3M (MMM) paced the seven decliners with its 1.7% drop.
The S&P 500 Index (SPX -2,610.30) added 27.7 points, or 1.1%, while the Nasdaq Composite (IXIC - 7,023.83) rose 117.9 points, or 1.7%.
The Cboe Volatility Index (VIX - 18.60) dipped below 18 in intraday trading for the first time since Dec. 4, but pared its loss to 0.5 point, or 2.5%.
5 Items on our Radar Today
The wholesale cost of U.S. goods and services fell the most in five months in December, shedding 0.2% -- more than the 0.1% drop expected by economists -- due in part to plunging gasoline prices. The core producer price index (PPI), which excludes the volatile energy and food sectors, was unchanged. (MarketWatch)The U.K. House of Commons rejected Prime Minister Theresa May's European Union "Withdrawal Agreement" by a vote of 432 to 202. May is expected to speak in front of parliament next Monday, Jan. 21, where she will propose a "plan B" for Brexit. (CNBC)History says it could be time to short these 2 retail stocks.The news that sparked this penny stock's massive move.Why Starbucks has room to run.
Data courtesy of Trade-Alert
China Stimulus Buzz Boosts Oil Prices
Oil prices got a lift on optimism surrounding China's stimulus chatter. February-dated oil added $1.46, or 2.9%, to close at $51.97 per barrel.
Gold closed lower as the U.S. dollar strengthened. Gold for February delivery settled down $2.90, or 0.2%, at $1,288.40 an ounce.