"The strong holiday momentum continued after a brief break for
Christmas," noted Schaeffer's Senior Equity Analyst Joe Bell, CMT.
"There wasn't much economic data to report, but we are in the midst
of what has become known as the 'Santa Claus' rally, and the price
action so far seems to fall right in line with what we've
historically experienced during this time frame." As a result, the
Dow Jones Industrial Average (DJI)
, S&P 500 Index (SPX), and Nasdaq Composite (COMP) all
experienced another record-setting session.
Continue reading for more on today's market, including
Weekly jobless claims fell more than expected, Apple Inc. (
) gave away free stuff, and front-month option bulls pounced on
Twitter Inc (
Dow Jones Industrial Average (DJI - 16,479.88)
climbed higher throughout the session, tagging a record intraday
peak of 16,483.00 shortly before the close. By the end, the Dow was
up 122.3 points, or 0.8% -- reaching another all-time closing high
(its 50th in 2013). The blue-chip index's 29 advancers were led by
Exxon Mobil Corporation's (
) 1.7% gain, while JPMorgan Chase & Co. (
) -- the lone laggard -- fell 0.1%.
S&P 500 Index (SPX - 1,842.02)
reached its own all-time intraday peak of 1,842.84, and finished
with a gain of 8.7 points, or 0.5% -- securing a record closing
high. Meanwhile, the
Nasdaq Composite (COMP - 4,167.18)
touched a 13-year intraday high of 4,169.97, and added 11.8 points,
or 0.3%, for the session.
CBOE Volatility Index (VIX - 12.33)
sank to an intraday low of 11.69, and shaved off 0.2 point, or
1.2%, on the day -- its lowest close since Nov. 22.
A Trader's Take
"The day after Christmas is always great," Bell continued.
"Going back to 1950, December 26 has been positive more than any
other day during the year. I guess everyone is in a good mood from
the holiday and looking forward to the new year, because
traditionally, it's just a bad day to be short the market, and
today was no exception."
5 Items on Our Radar Today
- The Labor Department said
initial jobless claims
fell by a larger-than-expected 42,000 last week to 338,000 --
marking the biggest decline in over a year. However, the
four-week moving average of first-time filings climbed by 4,250
- One speculator upped his bullish stance on
eBay Inc (EBAY)
by rolling his previous call position to a later date and higher
Apple Inc. (
-- which has gained ground during the latter half of 2013 --
kicked off its "12 Days of Gifts" program.
- Recent technical struggles for
Applied Materials, Inc. (AMAT)
haven't deterred option bulls from converging on the stock.
Twitter Inc (
saw a rush of bullish betting, with options players largely
targeting the stock's front-month calls.
For a look at today's options movers and commodities
activity, head to page 2.
Crude futures saw a modest advance today, thanks to some upbeat
unemployment data from the Labor Department. The February contract
tacked on 33 cents, or 0.3%, to finish at $99.55 per barrel.
Meanwhile, gold futures also closed higher due to an uptick in
demand out of Asia, with February-dated gold climbing $9, or 0.7%,
to end at $1,212.30 an ounce.
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