We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
All three key U.S. indexes closed at all-time highs on Wednesday, with the S&P 500 moving past 2,700 for the first time. Optimism over strong market performance in 2018 contributed to these gains. Additionally, gains in chipmakers and energy stocks had a positive impact on investor sentiment. Also, favorable economic data, including an upbeat manufacturing report and record construction spending boosted markets.
How the Benchmarks Fared?
The Dow Jones Industrial Average (DJI) increased 0.4%, or 98.53 points to close at 24,922.68. The blue-chip index was just 80 points short of crossing the significant level of 25,000. The S&P 500 rose 0.6% to close at 2,713.06, reaching its best level ever. The tech-laden Nasdaq Composite Index closed at 7,065.53, gaining 0.8%. The tech heavy index registered its best yearly start since 2006.
The fear-gauge CBOE Volatility Index (VIX) decreased 7.9% to close at 9. During the day, the volatility index fell below 9 for the first time ever. A total of around 7.1 billion shares were traded on Wednesday, higher than the last 20-session average of 6.3 billion shares. Advancers outnumbered decliners on the NYSE by a 1.47-to-1 ratio. On Nasdaq, a 1.45-to-1 ratio favored advancing issues.
What Pushed the Benchmarks Upward?
Key indexes started the second trading day of 2018 on an upbeat note as investors remained optimistic that the year will witness more gains for the markets. Further, gains in chipmakers pushed the indexes northward. Intel Corporation’s (INTC) shares fell 3.4% after the company admitted that reports indicating that its chips are subjected to data theft due to design flaws are true. However, the chipmaker assured that this problem will be taken care of in the coming weeks.
Following this development, shares of Intel’s competitors like NVIDIA Corporation (NVDA - Free Report) and Micron Technology, Inc. (MU - Free Report) increased 6.6% and 3%, respectively. Key semiconductor index, PHLX Semiconductor (SOX) rose 1.7%.
Additionally, out of the 11 key S&P 500 sectors, nine of them managed to close in the green. Anti-government rallies in major oil exporter Iran and recent crude supply cuts by Russia and OPEC countries, accompanied by steady economic growth had a positive impact on oil prices. Both WTI and Brent crude prices increased to 2% and 1.9% to settle at $61.63 per barrel and $67.84 a barrel, respectively, their best gains since December 2014.
Increase in oil prices had a positive impact on the Energy Select Sector SPDR (XLE), which advanced 1.5%, becoming one of the best performing sectors of the S&P 500. Some of its key components, including Chevron Corporation (CVX - Free Report) and Exxon Mobil Corporation (XOM - Free Report) rose 0.7% and 2%, respectively. Both the energy giants possess a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Upbeat Economic Data
The ISM manufacturing index rose from 58.2% in November to 59.7% in December and reached its highest settlement in the last two years. This was also higher than the consensus estimate of 58.2%. The manufacturing index, which contributes around 12% to the U.S. economy, has continued to expand on the last month of 2017. The factory activity measure for 2017 average was at 57.6%, highest in 13 years.
The US Census Bureau of the Department of Commerce reported construction spending of $1.257 trillion in November, up 0.8% from downwardly revised October figure. This its highest level on record. Further, the increase in the payout by builders on residential and nonresidential structures was more than the consensus estimate of an increase by 0.6%.
Costco Wholesale Corp. (COST - Free Report) continued with its solid comparable-store sales (comps) trend in the month of December as well. (Read More)
Zumiez Inc. (ZUMZ - Free Report) continues to impress investors with its positive comparable-store sales (comps) trend amid a competitive retail backdrop. (Read More)
Rite Aid Corporation reported third-quarter fiscal 2018 results, which marked a considerable improvement from the company’s recent trend. (Read More)
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
Image: Bigstock
Stock Market News for January 04, 2018
All three key U.S. indexes closed at all-time highs on Wednesday, with the S&P 500 moving past 2,700 for the first time. Optimism over strong market performance in 2018 contributed to these gains. Additionally, gains in chipmakers and energy stocks had a positive impact on investor sentiment. Also, favorable economic data, including an upbeat manufacturing report and record construction spending boosted markets.
How the Benchmarks Fared?
The Dow Jones Industrial Average (DJI) increased 0.4%, or 98.53 points to close at 24,922.68. The blue-chip index was just 80 points short of crossing the significant level of 25,000. The S&P 500 rose 0.6% to close at 2,713.06, reaching its best level ever. The tech-laden Nasdaq Composite Index closed at 7,065.53, gaining 0.8%. The tech heavy index registered its best yearly start since 2006.
The fear-gauge CBOE Volatility Index (VIX) decreased 7.9% to close at 9. During the day, the volatility index fell below 9 for the first time ever. A total of around 7.1 billion shares were traded on Wednesday, higher than the last 20-session average of 6.3 billion shares. Advancers outnumbered decliners on the NYSE by a 1.47-to-1 ratio. On Nasdaq, a 1.45-to-1 ratio favored advancing issues.
What Pushed the Benchmarks Upward?
Key indexes started the second trading day of 2018 on an upbeat note as investors remained optimistic that the year will witness more gains for the markets. Further, gains in chipmakers pushed the indexes northward. Intel Corporation’s (INTC) shares fell 3.4% after the company admitted that reports indicating that its chips are subjected to data theft due to design flaws are true. However, the chipmaker assured that this problem will be taken care of in the coming weeks.
Following this development, shares of Intel’s competitors like NVIDIA Corporation (NVDA - Free Report) and Micron Technology, Inc. (MU - Free Report) increased 6.6% and 3%, respectively. Key semiconductor index, PHLX Semiconductor (SOX) rose 1.7%.
Additionally, out of the 11 key S&P 500 sectors, nine of them managed to close in the green. Anti-government rallies in major oil exporter Iran and recent crude supply cuts by Russia and OPEC countries, accompanied by steady economic growth had a positive impact on oil prices. Both WTI and Brent crude prices increased to 2% and 1.9% to settle at $61.63 per barrel and $67.84 a barrel, respectively, their best gains since December 2014.
Increase in oil prices had a positive impact on the Energy Select Sector SPDR (XLE), which advanced 1.5%, becoming one of the best performing sectors of the S&P 500. Some of its key components, including Chevron Corporation (CVX - Free Report) and Exxon Mobil Corporation (XOM - Free Report) rose 0.7% and 2%, respectively. Both the energy giants possess a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Upbeat Economic Data
The ISM manufacturing index rose from 58.2% in November to 59.7% in December and reached its highest settlement in the last two years. This was also higher than the consensus estimate of 58.2%. The manufacturing index, which contributes around 12% to the U.S. economy, has continued to expand on the last month of 2017. The factory activity measure for 2017 average was at 57.6%, highest in 13 years.
The US Census Bureau of the Department of Commerce reported construction spending of $1.257 trillion in November, up 0.8% from downwardly revised October figure. This its highest level on record. Further, the increase in the payout by builders on residential and nonresidential structures was more than the consensus estimate of an increase by 0.6%.
Stocks That Made Headlines
Costco Exits 2017 With Stellar Comps Performance in December
Costco Wholesale Corp. (COST - Free Report) continued with its solid comparable-store sales (comps) trend in the month of December as well. (Read More)
Delta Reports Dismal December Traffic, Raises Q4 Costs View
Delta Air Lines, Inc. (DAL - Free Report) reported disappointing traffic results for December. (Read More)
Zumiez Up on Robust December Comps & Upbeat View
Zumiez Inc. (ZUMZ - Free Report) continues to impress investors with its positive comparable-store sales (comps) trend amid a competitive retail backdrop. (Read More)
Rite Aid Q3 Earnings Beat, Stores Transfer on Track
Rite Aid Corporation reported third-quarter fiscal 2018 results, which marked a considerable improvement from the company’s recent trend. (Read More)
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
Click for details >>