"This morning, rumors circulated that China may serve up a new
stimulus package. If that wasn't enough, news out of Europe was
that the pro-bailout political party in Greece is rising in the
polls ahead of next month's elections," said Schaeffer's Senior
Equity Analyst Joe Bell. "This combination of positive
international news helped keep last week's positive momentum alive,
while most sectors finished in the black today." With that, the
Dow Jones Industrial Average (DJI)
rocketed out of the gate, and never really looked back, notching a
triple-digit gain by the closing bell.
Keep reading to see what else was on our radar today:
And now, a look at the numbers...
- Drumroll, please...
Day one for trading Facebook (
- The SPX continued to
battle a familiar technical hurdle
- When will Wall Street
be convinced of this bull market
Dow Jones Industrial Average (DJI - 12,580.69)
climbed as high as the 12,611.61 mark before noon today, and
retained most of its gains to settle up 125.9 points, or 1%. The
blue-chip barometer notched a finish atop its 10-day moving average
for the first time since May 3. Twenty-eight of the Dow's 30 blue
chips closed higher, as Bank of America (
) paced the winning majority with a 4.1% rise. Exxon Mobil (
) and McDonald's (
) finished with deficits of roughly 0.2% apiece.
S&P 500 Index (SPX - 1,332.42)
conquered key resistance at the 1,320 mark, and added 14.6 points,
or 1.1%, by the time the dust settled. The
Nasdaq Composite (COMP - 2,870.99)
also enjoyed a win, climbing 33.5 points, or 1.2%. Like the Dow,
the SPX and COMP toppled their 10-day trendlines for the first time
since May 3 and May 2, respectively.
CBOE Market Volatility Index (VIX - 21.03)
pulled back 3.4% today, finding a perch just above its session low
of 20.99. However, this marks the VIX's eleventh straight day above
: "It was clear that coal, metals, and energy stocks led the way
following the news out of China, and the rising tide helped lift
most other sectors as well," stated Bell. "It looks like
the SPX will now be contending with the 1,333
, which is double the March 2009 low."
Turning to today's major market stories...
For today's activity in commodities, options, and more, head
to page 2.
Oil futures got an early lift from concerns surrounding Iran's
nuclear capabilities, China's actions to prompt growth, and
lingering concerns about Greece. However, a credit downgrade for
Spain buoyed the greenback, and was enough to pull the
dollar-denominated commodity to a loss. By the close, July-dated
crude inched lower by 10 cents, or 0.1%, to land at $90.76 a
On the heels of Spain's credit downgrade, gold futures also
finished in the red today. The precious metal enjoyed early gains
following a downbeat consumer confidence report and news of China's
rumored financial stimulus, but struggled to maintain its positive
momentum. Gold for August delivery lopped off $20.20, or 1.3%, to
close at $1,551 an ounce.
Levels to Watch in Trading
- Dow Jones Industrial Average (DJI - 12,580.69) - support at
11,500; resistance at 14,000
- S&P 500 Index (SPX - 1,332.42) - support at 1,100;
resistance at 1,500
- Nasdaq Composite (COMP - 2,870.99) - support at 2,400;
resistance at 3,400
For today's notable annual highs and lows,
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
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