Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



The Dow Wins for a Fourth Straight Day

Barring any sudden movement, the Dow Jones Industrial Average (INDEX: ^DJI  ) is primed to close out the week on a four-day rally, erasing last Friday's fire sale. The markets opened the day in the red after Fitch Ratings cut Spain's credit by three notches to BBB. However, the broad markets recovered after President Obama addressed the world's economic woes and stated that the eurozone needs to take substantial steps to inject capital into banks and decide on a comprehensive plan to deal with its fiscal issues.



Gain/ Loss %

Dow Jones Industrials 76.93 0.63%
VIX (Volatility Index) (0.13) (0.60%)
10-Year Treasury Note (0.017) (1.03%)
WTI Oil (0.41) (0.48%)

Source: Yahoo! Finance.

However, as you can see in the chart above, the markets are not expecting a smooth road ahead, as investors fled into the safety of 10-year Treasuries. June crude oil futures also lowered on the prospect of shrinking economic growth both in Europe and Asia.

What's happening
(NYSE: WMT  ) is the king of all the Dow components today, up 3.24% as the retailer continues its rally after recording a stellar first quarter. In fact, Wal-Mart's share price is the highest it has been since 1999, recovering nicely after suffering April's embarrassing bribery charges in Mexico.

Outside of the Dow, Carl Icahn has set his sights on Navistar International (NYSE: NAV  ) after winning his first battle at Chesapeake Energy (NYSE: CHK  ) by selling the latter's midstream assets for $4 billion to Global Infrastructure Partners. Icahn increased his share of the commercial truck manufacturer to 12% as Navistar shares skyrocketed on the news, with shares appreciating over 16% on the day.

With more worries of slowing growth around the world, basic materials is the worst-performing sector today, with United States Steel (NYSE: X  ) down 4%.

The good news is the Dow Jones Industrials are performing well again, making it four straight days in the green. We must be aware that Europe is still in a perilous state, and in order to stabilize the market for a long bull run, the central banks will need to heed Obama's message and infuse capital into the banking systems. The problems are complex and the treatment is supplied in small doses, so expect some turbulence on the way. With increased instability expected in the market, now is a great time to check out the Motley Fool's special report describing three stocks that will help you retire rich. This free report lists three remarkable companies and offers great advice on how to invest to secure a comfortable retirement. Get your free report now.

Joel South owns shares of no company listed above. The Motley Fool owns shares of Chesapeake Energy. Motley Fool newsletter services have recommended buying shares of Chesapeake Energy. Motley Fool newsletter services have recommended creating a diagonal call position in Wal-Mart Stores. The Motley Fool has a disclosure policy.
We Fools may not all hold the same opinions, but we all believe that
considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.

Read/Post Comments (0) | Recommend This Article (5)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 1907699, ~/Articles/ArticleHandler.aspx, 10/22/2016 1:58:11 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 16 hours ago Sponsored by:
DOW 18,145.71 -16.64 -0.09%
S&P 500 2,141.16 -0.18 -0.01%
NASD 5,257.40 15.57 0.30%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

10/21/2016 4:47 PM
^DJI $18145.71 Down -16.64 -0.09%
CHK $6.68 Down -0.23 -3.33%
Chesapeake Energy CAPS Rating: ***
NAV $23.03 Up +0.03 +0.13%
Navistar Internati… CAPS Rating: **
WMT $68.34 Down -0.39 -0.57%
Wal-Mart Stores CAPS Rating: ***
X $19.78 Up +0.32 +1.64%
United States Stee… CAPS Rating: **