This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Dow Rockets to First 400-Point Gain in Three Years as Oil Resumes Slide

NEW YORK (TheStreet) -- The Federal Reserve helped fuel a marketwide rally Thursday sending the Dow Jones Industrial Average to a 400-point gain after the central bank assured Wall Street it would be "patient" in determining when to raise rates.

The S&P 500 climbed 2.4% while the Nasdaq added 2.2%. The Dow rocketed 420 points, its largest advance since November 2011.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

The Fed's pledge for patience in raising rates on Wednesday infused markets with new vigor on Thursday. Fed Chair Janet Yellen said the central bank would likely not increase rates for at least the next couple of meetings.

"It's really reconfirmation that they plan on starting to raise rates midway through next year... barring some big setback in either the labor market or the economy," said Chris Gaffney, senior market strategist at EverBank, in a call.

The markets and crude oil finally broke apart after weeks in lockstep as stocks soared even as commodity prices continued a steep decline. A bounce in crude oil prices had evaporated by the afternoon with fear resurfacing that the commodity had not yet found a bottom after weeks of steep losses. West Texas Intermediate crude slid 3.5% to $54.51 a barrel.

"It's too soon to call for a bottom but certainly investors with a longer-term strategy are finding a lot of good bargains at this point," said Sterne Agee chief economist Lindsey Piegza over the phone.

Saudi Arabia's oil minister, Ali al-Naimi, said Thursday that OPEC could not cut output and remedy the commodity slump alone lest it risk losing market share. The Saudi official said OPEC had called upon non-OPEC oil producers to restrict supply last month but that "those efforts were not successful."

Stocks held onto their session highs in the face of plunging oil after Yellen assured markets that there was no threat of financial spillover, said LPL Financial investment strategist John Canally. "Yellen was asked that directly and her answer was kind of soothing," said Canally. "She would err more on the side of caution if there was something going on. Clearly the Fed sees that there's not and I think that was a signal that maybe oil and the markets can decouple."

Commodity traders had hoped prices would stabilize as oil companies announced plans to limit investments in new production, moves that should pare global oversupply. Marathon Oil (MRO) and ConocoPhillips (COP) separately said they would slash 2015 capital expenditure by 20%, while Chevron (CVX) put plans to drill in the Canada's Beaufort Sea on hold indefinitely.

Tech giants such as Apple (AAPL) , Tesla (TSLA) and Facebook (FB) moved significantly higher, while the Technology SPDR ETF (XLK) surged 2.9%. Oracle (ORCL) was pulling enterprise software developers higher following a better-than-expected second quarter. Microsoft (MSFT) , Hewlett-Packard (HPQ) and Intel (INTC) jumped.

Sony (SNE) shares were up 3.7% after deciding to pull the release of The Interview, previously set to debut on Christmas Day. On Wednesday, major theater chains including AMC Entertainment (AMC) and Regal Entertainment (RGC) dropped plans to show the movie after threats from Sony hackers.

Rite Aid (RAD) climbed 11.9% as quarterly net income beat expectations and same-store sales in its third quarter spiked more than 5%.

Dunkin' Brands (DNKN) tumbled more than 6% as the company issued weaker-than-expected 2015 guidance, while Kraft Foods (KRFT) surged 6.3% after announcing it had appointed its Chairman John Cahill as its new CEO.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

--Written by Keris Alison Lahiff in New York.

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,778.15 +421.28 2.43%
S&P 500 2,061.23 +48.34 2.40%
NASDAQ 4,748.3960 +104.0840 2.24%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs