The Dow Jones today soared as industrial shares rallied on strong earnings reports, surging 300 points intraday before retreating to close the day up 216 points. The Nasdaq added 69 points. The S&P 500 Volatility Index (VIX) fell more than 7% on the day.
What moved the markets: The Dow Jones jumped significantly after two important components reported strong quarterly results. Both Caterpillar Inc. (NYSE: CAT) and 3M Co. (NYSE: MMM) soared after reporting earnings. Shares of both companies were up nearly 5% on the day.
Most notable economic news: Weekly jobless claims registered at 283,000, providing strong confidence in the U.S. job market's stability. The four-week average of 281,000 claims is a 14-year low for the indicator. Last week's report of 264,000 was the lowest level since April 2000. This was the sixth-consecutive week that unemployment claims were below 300,000.
Now here's a breakdown of today's other top stories and stock performances:
Killing It: Shares of Caterpillar Inc. (NYSE: CAT) were up 5% after the firm reported third-quarter earnings of $1.72 per share. Wall Street analysts predicted earnings of $1.36 per share. The industrial equipment provider boosted its 2014 profit outlook.
Strong Drive: Shares of General Motors(NYSE: GM) slid more than 1.1% this afternoon when traders sold off the company after its earnings report. The automotive company has had a rough year with its multiple recalls, which is why is GM stock slipped today. The firm cited rising demand from China and the North American market after it reported net per-share earnings of $0.81 this morning, significantly besting its $0.45 net per share earnings in the same quarter last year. However, this wasn't enough to draw investors in for the long haul. Here's our in-depth analysis of GM's Q3 earnings report...
Paid Opinions: Shares of Yelp Inc. (NYSE: YELP) slid more than 18% after the company issued both strong Q3 earnings results and a fourth-quarter earnings outlook that fell far below Wall Street expectations.
Shipping for Free: In an effort to stave off competition from its primary online retailers, Target Corp. (NYSE: TGT) announced plans to provide free shipping on online orders through the holiday season. According to reports, any-sized orders purchased through Dec. 20 will earn free shipping. In addition, the company launched a "wish list" app for users looking to provide hints for their gift desires this December. Shares of Target were up more than 1% on the day.
Stressed Out: The European Central Bank announced that it will release the results of its audit on its banking system this Sunday. The ECB will announce results from its stress test as it attempts to gauge the severity of issues plaguing its financial system. According to one investment guru at PIMCO, up to 18 European banks could fail this round of tests.
Now for three of today's best profit opportunities from our investing experts - for Money Morning Members only (Not a Member? Sign up now - it's free):
How to Profit from a Stronger U.S. Dollar: The Federal Reserve plans to wind down its asset purchases this month, but Japan and the United Kingdom are still buying, full swing. Meanwhile, the European Union is just looking to get started with its stimulus efforts. That's sent the U.S. dollar into a major run-up, with the euro and yen on the losing side. This adds up to a global currency conflict. And our resource expert Peter Krauth, a 20-year commodity guru and portfolio advisor, has identified a very rare, very lucrative opportunity...
The Profit Opportunity in Hong Kong's Unrest: Most investors haven't got a clue about what Hong Kong's riots represent, let alone the investment potential that's being unleashed there. As a result, they're going to miss out on some really terrific profit opportunities. But before we get to the best way to play this, understanding what's driving the unrest is key...
How to Get a Piece of Wall Street Profits Without the Wall Street Corruption: There's simply no limit to how far Wall Street will go to make a buck. It's no wonder. With corporate offenses and "bad behavior" routinely going unpunished, perpetrators have developed a sense of immunity. But we can strike back against banks that are behaving badly. And here's how we're going to play a non-bank investment against a rigged services industry...
Garrett Baldwin is a globally recognized research economist, financial writer, consultant, and political risk analyst with decades of trading experience and degrees in economics, cybersecurity, and business from Johns Hopkins, Purdue, Indiana University, and Northwestern.