STOCKS HIT A RECORD HIGH: Here's what you need to know
US stocks climbed to a new record as a handful of banks reported earnings, including JPMorgan, which gained on speculation that tax cuts will boost profits.
The S&P 500 increased 0.7%, while the Dow Jones Industrial Average spiked 0.9% and the more tech-heavy Nasdaq 100 rose 0.7%.First up, the scoreboard:
- Dow: 25,803.54, +228.81, (+0.89%)
- S&P 500: 2,786.05, +18.54, (+0.67%)
- Nasdaq: 7,261.06, +49.28, (+0.68%)
- US 10-year yield: 2.55%, +0.02
- WTI crude oil: $64.40, +$0.60, +0.94%
1. A key metric shows the stock market is at 'extreme' levels that are the most stretched in 20 years. Morgan Stanley said that the indicator will coincide with a correction once the market has fully topped.
2. Goldman Sachs reveals a strategy that will help traders crush earnings season using 20 stocks. The firm recommends buying options straddles that will capture the days around an earnings period, and are also cheap relative to past moves.
3. JPMorgan beats earnings expectations after accounting for a $2.4 billion hit from tax reform. The firm is the first of the big banks to report in what is expected to be an unconventional earnings cycle for the industry.
4. JPMorgan lost $273 million on a single client in the fourth quarter. The firm confirmed the loss was connected to the South African retailer Steinhoff International, which is embroiled in an accounting scandal.
5. Facebook slides after saying it will shift its newsfeed function so it's actually 'good for people'. The company said that it will alter its news feed algorithm to prioritize content from users' friends rather than brand or publisher pages.ADDITIONALLY: