Bulls Lift Dow 100 Points; Banks Move to Buoy Global Economy

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"The market started off in the red, but strengthened during early afternoon trading, as news came out that the European Central Bank (ECB) is considering setting a yield band target as part of the new bond-buying program," noted Schaeffer's Senior Equities Analyst Joe Bell. "The real push higher came after a letter from Fed Chairman Bernanke to a state representative surfaced, with Ben saying there was room for further action by the central bank." The Dow Jones Industrial Average (DJI) parked in positive territory for the first session out of the last five, but still saw red on the week.

Keep reading to see what else was on our radar today:

And now, a look at the numbers...

CLOSING SUMMARY - INDICES

CLOSING SUMMARY - NYSE AND NASDAQ


The Dow Jones Industrial Average (DJI - 13,157.97) fought off an early deficit to make its way 100.5 points, or 0.8%, higher for the day. At its session peak, the blue-chip barometer was up 118 points. All but five of the Dow's 30 components enjoyed wins today, as Verizon Communications Inc. ( VZ ) led the outperforming majority with a 2.2% advance. Intel Corporation's ( INTC ) 0.5% pullback paced the four losing issues, while Alcoa Inc. ( AA ) stayed at breakeven. The Dow dropped 0.9% on the week.

Likewise, the S&P 500 Index (SPX - 1,411.13) and Nasdaq Composite (COMP - 3,069.79) turned higher for the day. The SPX increased by 9.1 points, or 0.7%, while the COMP leapt 16.4 points, or 0.6%. Over the past five sessions, the SPX faltered 0.5%, and the COMP drifted 0.2% lower.

The CBOE Market Volatility Index (VIX - 15.18) ended its four-day win streak today, and fell 4.9% to close at its intraday low. However, the market's fear gauge notched a weekly return of more than 12.8%.

Today's highlight : "The Dow ended its four-day losing streak, as the market shook off some of its recent lackluster performance," said Bell. "The durable goods orders came in better than expected as well, mostly led by gains in transportation orders."

Turning to today's major market stories...

For today's activity in commodities, options, and more, head to page 2.

Crude futures racked up a second straight loss today. Investors stayed on the sidelines, despite a storm in the Gulf of Mexico that could prove detrimental to supply and production operations there. By the close, October-dated oil inched lower by 12 cents, or 0.1%, to end at $96.15 a barrel. For the week, black gold eked out a 0.1% gain.

Conversely, gold futures ticked higher for a second day in a row, after hopes for global economic stimulus were lifted on the ECB's new bond-buying plan and optimism that the Fed will take action soon. Gold for December delivery added 10 cents, to settle at $1,672.90 an ounce. The malleable metal enjoyed a 3.3% rise on the week.

Levels to watch in trading...

  • Dow Jones Industrial Average (DJI - 13,157.97) - support at 11,500; resistance at 14,000
  • S&P 500 Index (SPX - 1,411.13) - support at 1,100; resistance at 1,500
  • Nasdaq Composite (COMP - 3,069.79) - support at 2,400; resistance at 3,400

OUTPERFORMING AND UNDERPERFORMING SECTORS

STOCKS - MOVERS

STOCKS - EARNINGS

STOCKS - NOTABLE CALL ACTIVITY

STOCKS - NOTABLE PUT ACTIVITY

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.

All Rights Reserved. Unauthorized reproduction of any SIR publication is strictly prohibited.


This article appears in: Investing , Options

Referenced Stocks: AA , BEBE , INTC , KORS , VZ

Schaeffer's Investment Research

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