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Dow Jones Industrial Average Makes New Record High


Today's financial recap and tomorrow's financial outlook.

European markets all finished higher today on signs that the economy was continuing to grow after showing signs of weakening in September. German factory orders, UK industrial production, and Eurozone retail sales all showed solid gains from the prior month. The Italian FTSE MIB (INDEXEURO:PX1) was the best performer, up 0.89%.

Crude oil rebounded after two straight months of declines. Crude oil for December delivery settled at a price of $94.80, up 1.1% for today. Oil-producing companies that derive a large part of their revenues from shale production came under intense pressure after ambigious earnings reports from Gulfport Resources (NYSE:GPOR) and EOG Resources (NYSE:EOG).

The S&P 500 (INDEXSP:.INX) gained 0.43% today after touching the prior record high during the trading day. The Dow Jones Industrial Average (INDEXDJX:.DJI) reached a new record high on strength from Microsoft (NASDAQ:MSFT). Stocks that are largely driven by momentum and that have sizable gains for the year showed multiple percentage losses on the day. The weakest two sectors were health care and consumer discretionary. Biotech and solar stocks in particular were very weak. The best-performing sector was utilities.

MBA mortgage applications fell 7% from the prior week and declined 1.4% for the month of October. Though the market index can be volatile on a week-to-week basis, alarmingly the purchases component fell 5.2% and dipped into negative territory for the month.

News reports surfaced late in the trading day that Twitter's (NYSE:TWTR) IPO would price between $25 to $28 per share. The final price will be released tonight and the shares will begin trading on the NYSE tomorrow morning.

Tomorrow's Financial Outlook

Tomorrow the US will release the advance estimate of third-quarter GDP. Economists expect the US economy to have grown at an annualized rate of 2% during the quarter. Including inflation, the US is forecast to have grown 3.4%. The other economic data point of the day is jobless claims, which is forecast to decline to 335,000, near their average from September and October.

The ECB will make its monthly monetary policy decision tomorrow morning. It is widely expected that the central bank will ease policy through either a rate cut or by offering new long-term loans. The euro has fallen 1.56% vs. the dollar in anticipation of this event. The Bank of England will also release its monetary policy decision, and Australia will report its employment change for the month of October.

Forty-three major US companies will report earnings tomorrow. Notable reports include Apache (NYSE:APA), Walt Disney (NASDAQ:DIS), (NASDAQ:PCLN), Arena Pharmaceuticals (NASDAQ:ARNA), Nvidia (NASDAQ:NVDA), Groupon (NASDAQ:GRPN), FireEye (NASDAQ:FEYE), and Rocket Fuel (NASDAQ:FUEL).

Twitter: @Minyanville

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