Dow Continues Higher, Ends the Week in the Green

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"The jobs number came in much worse than expected, and it seemed like everyone felt the market could do nothing but go straight down," reported Schaeffer's Senior Equity Analyst Joe Bell, CMT. "Well, after a brief sell-off before the market opened, the bulls bought the dip and yesterday's momentum continued in a big way to the upside." The Dow Jones Industrial Average (DJI) continued to fight its way into the green, closing with another triple-digit gain and finishing in positive territory for the week.

Continue reading for more on today's market, including :

Trading Topic of the Week -- Reasons to Dodge Directional Risk: Reduce your reliance on stop-losses . With straddles, your dual directional exposure means you won't suffer major initial losses due to market volatility or adverse price movement.

The Dow Jones Industrial Average (DJI - 15,794.08) spent nearly all of today's session marching higher, ending with a gain of 165.6 points, or 1.1%, a chip-shot away from its intraday peak. On a weekly basis, the blue-chip index managed a 0.6% gain. All but one of the Dow's members advanced today, with The Boeing Company's ( BA ) 3.6% gain leading the charge. The lone laggard was The Coca-Cola Company ( KO ), down 0.2%.

The S&P 500 Index (SPX - 1,797.02) finished just shy of the round-number 1,800 mark, surging 23.6 points, or 1.3%, on the day. The Nasdaq Composite (COMP - 4,125.86) also advanced, adding 68.7 points, or 1.7%. The SPX rose 0.8% week-over-week, while the COMP moved up 0.5%.


The CBOE Volatility Index (VIX - 15.29) gave back 1.9 points, or 11.3%, and ended the week with a 16.9% deficit.

CLOSING SUMMARY - INDICES

CLOSING SUMMARY - NYSE AND NASDAQ

A Trader's Take :

"The strength in the dollar relative to the yen is getting a lot of attention recently, and once again corresponded with today's strength after the jobs report," noted Bell. "The cyclical sectors took a leadership role today, with technology and industrials sporting large gains."

5 Items on Our Radar Today :

  1. The U.S. labor force grew by 113,000 jobs last month, falling notably short of economists' estimates. The unemployment rate dropped to a five-year low of 6.6%, and is well off its post-recession high of 10%, which was hit in October 2009. (Chicago Tribune)
  2. Dallas Fed President Richard Fisher appeared on CNBC to quell the notion that the jobs number is the only data point being monitored as the central bank makes further tapering decisions. "The real question is momentum in the economy," he noted, "and it has been picking up." (CNBC)
  3. One large-scale speculator scooped up a massive block of Intel Corporation ( INTC ) calls, wagering on a return to historical highs.
  4. Yelp Inc ( YELP ) options players are looking for a move up to the never-explored $100 level.
  5. Our Option Idea of the Week highlights why Canadian Solar Inc. (CSIQ) shares could have more gas in the tank, even after the stellar year they've had.

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 :

March-dated oil futures moved higher, even edging above the $100-per-barrel level in intraday trading before settling on a gain of $2.04, or 2.1%, at $99.88 per barrel. The buying was driven by healthy demand expectations and continued concerns over supplies. On a weekly basis, black gold rose 2.5%.

Gold futures rose for the third straight session, following a worse-than-expected monthly jobs report. By the close, gold for April delivery had gained $5.70, or 0.5%, to finish at $1,262.90 an ounce. Week-over-week, gold prices rose 1.9%.

SCHAEFFER'S MARKET POSTURE



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: JCP , INTC , BA , KO , YELP

Schaeffer's Investment Research

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