A weaker U.S. dollar helped oil and gold higher
The Dow finished a volatile session cautiously higher, after exploring a range of more than 280 points on both sides of breakeven. The blue-chip index was up triple digits to start the day, amid hopes for a denuclearized North Korea. However, the Dow swung lower on reports that President Donald Trump's chief economic adviser, Gary Cohn, could resign should proposed steel and aluminum tariffs go into effect. By the end of the day, however, easing concerns about a trade war helped the Dow and S&P 500 back into the black, while the tech-rich Nasdaq outperformed.
Continue reading for more on today's market, including:
- 3 penny stocks burning shorts.
- This retail stock could make a big move tomorrow.
- Options bulls are piling on red-hot Micron stock.
- Plus, HOG's tariff warning; a Dollar Tree earnings preview; and Mylan's call activity spikes.
The Dow Jones Industrial Average (DJI - 24,884.12) finished up 9.4 points. Today saw 14 Dow components close in positive territory, led by Intel's (INTC) 1.9% gain. Johnson & Johnson (JNJ) stock was the worst decliner, dropping 1.2%.
The S&P 500 Index (SPX - 2,728.12) added 7.2 points, or 0.3%. The Nasdaq Composite (IXIC - 7,372.01) gained 41.3 points, or 0.6%.
The Cboe Volatility Index (VIX - 18.36) finished 0.4 point, or 2%, lower.
5 Items on Our Radar Today
- U.S. factory orders dropped in 1.4% in January, the largest drop in six months, snapping a five-month winning streak. Orders for core capital goods fell 0.3%, marking the first consecutive monthly declines since May 2016. (CNBC)
- BlackBerry (BB) is suing Facebook (FB) for allegedly infringing on several mobile messaging patents. However, Paul Grewal, Facebook's deputy general counsel, said "BlackBerry's suit sadly reflects the current state of its messaging business." (MarketWatch)
- Harley-Davidson stock fell after a tariff warning.
- Options bears targeted Dollar Tree stock ahead of earnings.
- Mylan stock saw heightened call activity after a bullish brokerage note.
Data courtesy of Trade-Alert
Oil, Gold Higher Amid Sharp Dollar Decline
April-dated crude futures rose 3 cents to end at $62.60 per barrel, its third straight session higher. The incremental rise was spurred by a weaker U.S. dollar and a forecast for a winter storm on the East Coast.
Gold futures for April delivery rose $15.30, or 1.2%, to close at $1,335.20 an ounce, as the U.S. dollar suffered a sharp pullback amid denuclearization hopes for North Korea Continued uncertainty over President Trump's stance on possible tariffs also fueled demand for the safe-haven asset.