Dow Jones Industrial Average (DJI)
enjoyed its sixth straight triple-digit move, adding more than 100
points for the second session in a row. More specifically, the
blue-chip barometer tacked on 138 points, as Wall Street waxed
optimistic ahead of tomorrow's central-bank policy statement. "It's
all about the Fed," stated Schaeffer's Senior Equity Analyst Joe
Bell, CMT. "After Monday's late-day sell-off on rumors that the Fed
will announce tapering, most participants quickly forgot about the
report and bought most sectors across the board. The majority of
investors don't believe there will be any major changes, but will
definitely be tuning in to get a glimpse of when the infamous
tapering might begin."
Continue reading for more on today's market, including
- Inflationary pressure stays tame, housing starts soar, and
President Obama weighs in on Big Ben.
Dow Jones Industrial Average (DJI)
rallied 138.4 points, or 0.9%, to 15,318.23, ending north of its
10-day and 20-day moving averages for just the second time in June.
Among the Dow's 30 components, all but Merck (
) and Microsoft (
) finished in the black. Leading the pack was General Electric (
), which tacked on 2.4% by the close.
S&P 500 Index (SPX)
toppled its own 10-day and 20-day trendlines for the first time
since late May, adding 12.8 points, or 0.8%, to end at 1,651.81.
Nasdaq Composite (COMP)
gained 30 points, or 0.9%, to finish at 3,482.18.
CBOE Market Volatility Index (VIX)
traded in a relatively tight range of less than 0.5 point,
swallowing a loss of 0.2 point, or 1.1%, to settle at 16.61.
A Trader's Take
"We quickly rebounded from yesterday's afternoon sell-off, and
this morning's inflation data did nothing to detract the buying,"
remarked Bell. "With the consumer price index (CPI) not showing any
signs of high inflation, it could keep the Fed's foot on the gas
pedal for just a bit longer."
3 Things to Know About Today's Market
- The Labor Department's
consumer price index (CPI)
rose by a seasonally adjusted 0.1% in May, compared to
expectations for a 0.2% increase. The core CPI, which excludes
food and energy, edged 0.2% higher last month, in line with
(Bureau of Labor Statistics)
Housing starts soared 6.8%
to a seasonally adjusted annual rate of 914,000 in May, according
to the Commerce Department. Building permits dropped 3.1% to a
rate of 974,000, though permits for single-family homes rose 1.3%
to a five-year high of 622,000 units.
- Asked if Ben Bernanke could be nominated for another term as
President Obama said
the central banker has "done an outstanding job," but he's
"already stayed a lot longer than he wanted or he was supposed
5 Stocks We Were Watching Today
expect more upside
for Bank of America (BAC) next week.
- Pacific Crest analysts
see higher highs
for NetApp (NTAP).
- An early upgrade prompted
on LinkedIn Corporation (LNKD).
- Short-term bears took a
relatively rare shine
to Molycorp (MCP).
- Yahoo! Inc. (YHOO) was a popular target among
long-term option bulls
For a look at today's options movers and commodities
activity, head to page 2.
Crude futures bounced back today, thanks to lingering concerns
about unrest in the Middle East. By the close, July-dated oil added
67 cents, or 0.7%, to finish at $98.44 per barrel.
Gold futures, on the other hand, weren't as fortunate, as
August-dated gold gave up $16.20, or 1.2%, to end at $1,366.90 an
ounce. Earlier in the session, the malleable metal fell as low as
$1,360.20 -- a near four-week nadir.
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