A New Record for Dow as Bulls Continue Run

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Dow Jones Industrial Average Continue reading for more on today's market, including
  • Schaeffer's Senior Trading Analyst Bryan Sapp on what pushed the markets to record highs today; plus the chart of the day on AOL, Inc. ( AOL ).
  • In case you missed it, here's what fear in the markets means for both Google Inc ( GOOG ) and Apple Inc. ( AAPL ).
  • How the record run by GOOG has option bulls swarming weekly calls.
plus...
  • The markets hit unseen heights, new data supports the housing recovery, and bullish option traders changed direction on Cisco Systems ( CSCO ).

The Dow Jones Industrial Average is now in unprecedented territory, notching a new all-time closing high today, and surpassing its record intraday high set on Oct. 11, 2007. Sparked by positive data on home prices and service sector growth, the Dow gained nearly 126 points, or 0.9%, to finish at 14,253.77. The 30-member Dow saw 27 companies advance, led by Cisco Systems ( CSCO ), which climbed 2.3%. Coca-Cola ( KO ) paced the two decliners, falling 0.4%. Alcoa (AA) was unchanged.

The S&P 500 Index (SPX) climbed nearly 15 points, or 1.0%, to close at 1,539.79, after touching a five-year peak of 1,543.47 in intraday trading. The Nasdaq Composite (COMP) gained 42 points, or 1.3%, to finish at 3,224.13. Earlier in the session, the tech-rich COMP topped out at 3,227.31 -- in territory not charted in 12 years.

The CBOE Market Volatility Index (VIX) fell 0.5 point, or 3.8%, to close at 13.48.

CLOSING SUMMARY - INDICES

CLOSING SUMMARY - NYSE AND NASDAQ

3 Things to Know About Today's Market :

  • The housing market continues to show signs of improvement , with average existing home prices climbing a year-over-year 9.7% in January, according to CoreLogic. (Los Angeles Times)
  • The Army and other agencies have started alerting workers and unions to potential layoffs and furloughs as the so-called "sequester" -- the automatic $85 billion federal spending cuts -- kicks into place this week. (CNN Money)
  • The ISM non-manufacturing index increased by more than expected, another potential sign that the economic recovery is gaining legs. (MarketWatch)

5 Stocks We Were Watching Today :

  1. Despite an overall bearish trend toward Cisco Systems ( CSCO ) recently, traders today went heavy on calls on the IT equipment maker.
  2. Groupon Inc (GRPN) saw new bearish option trades , despite a recent rebound in its share price.
  3. Semiconductor maker Cree (CREE) hit new highs today and was immediately targeted by both option bulls and bears.
  4. One long-term trader hit Comcast Corporation (CMCSA) with a short strangle , looking to cash in on potential stagnation.
  5. The recent run by Sirius XM Radio (SIRI) has some bullish investors thinking shares can reach new record highs in a few months.

EARNINGS

For a look at today's options movers and commodities activity, head to page 2.

STOCKS - NOTABLE CALL ACTIVITY

STOCKS - NOTABLE PUT ACTIVITY

Commodities :

All the positive news on the markets was also good for crude, which broke a three-day losing streak. Oil for April delivery added 70 cents, or 0.8%, to finish at $90.82 per barrel.

Gold also finished slightly up on the day, due to a softer U.S. dollar. But all the moves into equities kept the gains to a minimum -- April-dated gold ended up $2.50, or 0.2%, closing at $1,574.90 per ounce.

SCHAEFFER'S MARKET POSTURE

At the end of every market day, the staff at Schaeffer's Investment Research reviews the trading day in detail, covering major events and key market developments. Don't miss this critical, timely and insightful report. If you enjoyed today's edition of Market Recap, sign up here for free daily delivery straight to your inbox.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

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This article appears in: Investing , Options

Referenced Stocks: AAPL , AOL , CSCO , GOOG , KO

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