Investors Don’t Care About the Big Shutdown
Investors delivered a strong message of indifference to the Clown College on Capitol Hill by sending stocks higher.
The government shutdown failed to upset investors on Tuesday, as they bought stocks with a vengeance, sending the Nasdaq 100 Index to its highest level since the end of the dotcom era. Not to be outdone, the Russell 2000 Index reached another record-high close and hit another record intraday high. Stock market volatility sank and the Chicago Board Options Exchange Volatility Index (VIX), fell more than 6 percent.
The Dow Jones Industrial Average (NYSEARCA:DIA) picked up 62 points to finish Tuesday’s trading session at 15,191 for a 0.41 percent advance. The S&P 500 (NYSEARCA:SPY) surged 0.80 percent to close at 1,695. The Nasdaq 100 (NASDAQ:QQQ) jumped 1.08 percent to finish at 3,253 after rising as high as 3,254.33 – its highest intraday level since November 3, 2000. The Russell 2000 (NYSEARCA:IWM) skyrocketed 1.27 percent to reach a record-high close at 1,087.43, after hitting yet another all-time record intraday high of 1,087.78.
In other major markets, oil (NYSEARCA:USO) fell 0.46 percent to close at $36.68. On London’s ICE Futures Europe Exchange,Brent crude oil declined 52 cents (0.48 percent) to $106.91/bbl. (NYSEARCA:BNO). December gold declined $38.00 (2.86 percent) to $1,289.00 per ounce (NYSEARCA:GLD). Transports outran the super-secret, TR-3B on Tuesday, with the Dow Jones Transportation Average (NYSEARCA:IYT) surging 1.38 percent.
Tuesday’s trading session brought another round of big gains for the following maritime subsector stocks: DryShips (NASDAQ:DRYS) up 5.37 percent; Eagle Bulk Shipping (NASDAQ:EGLE) up 6.27 percent, and Baltic Trading (NASDAQ:BALT) up 5.11 percent.