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The Dow Jones today struck an all-time high, surpassing the 18,000 mark for the first time and marking the fastest 1,000-point gain in history. The news is hardly surprising. Money Morning's Shah Gilani predicted in November that the Dow would hit 18,000 by the end of the year.
Dow: 18,024.11, +64.67, +0.36%
S&P 500: 2,082.17, +3.63, +0.17%
Nasdaq: 4,765.42, -16.00, -0.33%
What Moved the Markets Today: The Dow added 64 points Tuesday, fueled by a strong GDP report from the U.S. Department of Commerce. This morning, in a third revision to third-quarter GDP, the agency said the U.S. economy grew at a pace of 5%, its strongest level in more than a decade. This easily surpassed consensus estimates of 4.3%. Despite optimism about future economic growth, biotech stocks were the hardest hit on the day, with the Nasdaq Biotech Index slipping 4.5%, its worst one-day session since April.
Now check out the biggest stories from the stock market today:
- Lockout Ends: Shares of GoPro Inc. (Nasdaq: GPRO) jumped more than 6% on news the company's 180-day post-IPO lockup expired on some shares. More than 36.6 million new shares were made from insiders. Many venture capital firms have begun to sell off GPRO shares they purchased in previous financing rounds or on private markets.
- Recall Problems: Shares of Keurig Green Mountain Inc. (Nasdaq: GMCR) slipped more than 2% on news the company has recalled nearly 7.2 million of its single-serve brewing machines. The company said it discovered the machines can overheat and spray hot water. Ninety burn-related injuries have been reported.
- Financial Failure: Shares of Ocwen Financial Corp. (NYSE: OCN) fell another 6% today in the wake of the company's settlement with the New York State Department of Financial Services over its mortgage practices. The company's chief executive officer announced he will step down.
- Cutting Back: The Coca-Cola Co. (NYSE: KO) will slash up to 2,000 jobs at the beginning of 2015, according to The Wall Street Journal. The global soft-drink giant is enacting a $3 billion cost-cutting program. Shares were up nearly 1.5% on the day.
- Biotech Blues: Shares of Gilead Sciences Inc. (Nasdaq: GILD) slipped another 3.7% on the day, following a 14% decline Monday. Shares are falling on news the nation's largest pharmacy benefits provider Express Scripts Holding Co. (Nasdaq: ESRX) will no longer offer its hepatitis C treatment. Other big biotech decliners on the day include Celgene Corp. (Nasdaq: CELG), Biogen Idec Inc. (Nasdaq: BIIB), Regeneron Pharmaceuticals Inc. (Nasdaq: REGN), and Epizyme Inc. (Nasdaq: EPZM).
Now our experts share some of the most important investment moves to make based on today's market trading – for Money Morning Members only:
Three Tech ETFs That Will Double Your Money: Money Morning Tech Specialist Michael A. Robinson is forecasting a strong year for stocks – and especially tech stocks – in 2015. And folks who pick the "right" profit plays can do even better than the market. Here's how to grab those market-trouncing gains with three profit plays that appear tepid on their face, but are actually high-octane claims on the hottest slices of Silicon Valley growth…
- Three Scary Tech Stocks to Avoid in 2015: Just because 2015 will be a strong year for tech stocks doesn't mean every single one will be a winner in the New Year. With that in mind, let's take a look at 2015's three worst tech stocks. Tread carefully, though – their numbers may terrify you…
- One Stock That Will Profit from a New, Breakthrough Medical Direction: Modern medicine, for all of its sophisticated drugs, complex gadgets, and amazing surgical procedures, rarely cures anything. It treats. It manages. It postpones the inevitable. But return a patient to normal, optimal health? Rarely. So when an innovation comes along that can effect a complete and permanent remission of disease or restore damaged organs to a pristine state, it should cause your keenest investing instincts to perk up and pay attention…
About the Author
Garrett Baldwin is a globally recognized research economist, financial writer, and consultant with degrees from Northwestern, Johns Hopkins, Purdue, and Indiana University. He is a seasoned financial and political risk analyst, with a focus on stocks, hedge funds, private equity, blockchain, and housing policy. He has conducted risk assessment projects for clients in 27 countries, and consulted on policy and financial operations for some of the nation's largest financial institutions, including a $1.5 trillion credit fund, a $43 billion credit and auto loan giant, as well as two of the largest Wall Street banks by assets under management.
Garrett joined Money Map Press as an economist and researcher in 2011, specializing in alternative strategies with an emphasis on fundamental and technical analysis.