Why the Dow Jones Had Its Biggest Gain of 2014 Today

By Garrett Baldwin, Executive Producer, Money Morning • October 8, 2014

Dow Jones Today, Oct. 8, 2014: The Dow Jones Industrial Average soared 274 points Wednesday following the Federal Open Market Committee's release of its September meeting minutes. The release marked the last of the Quantitative Easing 3 (QE3) era. According to the minutes, many Fed officials are seeking a new way to convince others that they are not prepared to raise interest rates according to the previous timeline.

The S&P Volatility Index (VIX) slumped nearly 10% on the day.

Today also marks the unofficial start to the September-quarter earnings season. After the bell, global aluminum giant Alcoa Inc. (NYSE: AA) will announce its quarterly results. Ahead of its earnings report, shares of Alcoa were up slightly.

Here's the scorecard from today's trading session:

Dow: 16,994.22, +274.83 (1.64%)
S&P 500: 1,968.89, +33.79 (+1.75%)
Nasdaq: 4,468.59, +83.39 (+1.90%)

Now, here's a breakdown of today's other top stories and stock performances:

• The Slump Continues: Oil prices continued to slide today, with Brent crude oil falling to a two-year low. Meanwhile, futures contracts for U.S. November crude slipped to their lowest level since April 2013. The continued downturn in energy prices is particularly hammering the stocks of oil-field service providers. Oilfield giants Halliburton Co. (NYSE: HAL), Baker Hughes Inc. (NYSE: BHI), and Schlumberger Ltd. (NYSE: SLB) all slipped on the day. (The good news for investors is that making money in the energy sector is no longer tied to higher oil prices - find out here why.)

• The Death of Retail: Shares of retailer J.C. Penney Co Inc. (NYSE: JCP) slumped by more than 11% intraday on news that it slashed its current-quarter same-store sales outlook. The company blamed a "difficult retail environment" in September. This afternoon, shares of Sears Holding Corp. (Nasdaq: SHLD) also fell more than 12% intraday after news broke that several of its suppliers have been halting shipments to stores, citing unpaid or delayed expenses. It's been a very bad year for SHLD stock, which is down a punishing 41% year to date...

• Ebola Breakout: The World Bank Group said today that the economic impact of the global Ebola epidemic could reach $32.6 billion should the disease expand to other Western Africa nations. The Centers for Disease Control and Prevention said that more than 1.4 million people could be infected with the disease by mid-January. As the Ebola epidemic rages, so-called "Ebola stocks" are surging as biotechs race to find a cure - but here's why investors should steer clear of overhyped plays.
• Spin-Off Surge: Shares of VMware Inc. (NYSE: VMW) were up more than 1.7% on the day after activist investor Elliott Management sent a letter to the board of EMC Corp. (NYSE: EMC), encouraging a spin-off of its cloud computing company. In September, The Wall Street Journal reported that data-storage firm EMC Corp. was exploring strategic options, including a possible merger with a competitor.

• Merger Mania: The battle for Allergan Inc. (NYSE: AGN) is heating up again. A day after Valeant Pharmaceuticals International Inc. (NYSE: VRX) announced plans to increase its offer to roughly $191, rival Actavis Plc. (NYSE: ACT) said it is considering new options to purchase the manufacturer of Botox. According to multiple reports, Allergan executives have refused to consider any bid less than $200 per share.

Now our experts share some of the most important investment moves to make based on today's market trading - for Money Morning Members only:

• The European Crisis Is Going Global - and We're Along for the Ride: Recently one European leader offered a unique response for dealing with the financial crisis and debt bubble. On the surface, it appears a sound approach. But when you scratch beneath, it turns out just the opposite is true. Developed economies would do well to consider the true state of this U.S. example of a "model" recovery before an even more catastrophic future arrives, and erupts...

• How to Invest in Wearable Tech with Just One Power Play: According to the IDC forecasters, wearable tech will grow 78.4% through the end of 2018. If we want to get on the road to wealth that tech provides, then this is a sector we must cash in on. But Defense & Tech Specialist Michael A. Robinson doesn't want investors to get hurt by messing with a risky stock like GoPro. He's found a way to invest in wearable tech - the entire sector - with a single investment that offers both safety and big profits...

• The Best Way to Profit from Crude Oil Prices Right Now: In today's environment, picking winning oil stocks is more about where a company drills, how it manages its assets and operations, and the broader flow of supply and demand. In this case, it's all about selecting the right target - companies that are built to weather the inevitable dips in the price of crude. And there are plenty of them out there...

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