"It was yet another light day on the economic front," noted
Schaeffer's Trading Analyst Peter Bryans. "New home sales data came
out better than expected, and homebuilders continued their recent
rally. Overall, it was a very low-volume day, as we headed into the
long weekend. The S&P 500 Index (SPX) hit the 1,900 level
again, however, and the small-caps in the Russell 2000 Index (RUT)
rallied to close higher on the week." Meanwhile, the
Dow Jones Industrial Average (DJI)
continued its slow trek higher, edging into positive territory for
Trading Topic of the Week
Continue reading for more on today's market, including
-- How to Get Started with Options:
Understand that options expire
. Buy-and-holders must remember: With options, the stock needs to
move in your favor -- and the sooner, the better.
Dow Jones Industrial Average (DJI - 16,606.27)
continued to gain ground today, closing 63.2 points, or 0.4%,
higher on the day. For the week, the blue-chip index added 0.7%,
and is now 0.2% higher on a year-to-date basis. Nike Inc (
) and Visa Inc (
) paced the Dow's 20 advancers, and The Coca-Cola Company (KO) and
General Electric Company (GE) were unchanged on the day. Pfizer
Inc. (PFE) led the decliners with a drop of 0.6%.
S&P 500 Index (SPX - 1,900.53)
rose 8 points, or 0.4%, for its first-ever close above the 1,900
mark. Turning to tech stocks, the
Nasdaq Composite (COMP - 4,185.81)
gained 31.5 points, or 0.8%. For the week, the SPX rose 1.2%, while
the COMP jumped 2.3%.
CBOE Volatility Index (VIX - 11.36)
closed at a new annual low, down 0.7 point, or 5.6%.
Week-over-week, the VIX shed 8.7%.
A Trader's Take
"Technically speaking, the iShares Russell 2000 Index (ETF)
(IWM) rallied back above its 200-day moving average," added Bryans.
"While it has been a laggard this year, this could be a healthy
sign for the market, should we get some additional follow-through
in the higher-beta small-caps during the next few weeks. Some of
the sectors and industries that have been beaten down recently --
such as homebuilders, consumer discretionary names, and tech stocks
-- were among today's leaders."
5 Items on Our Radar Today
- The Commerce Department reported a 6.4% bump in
sales of new single-family homes
, hitting a seasonally adjusted annual rate of 433,000 units to
top economists' expectations. The inventory of new homes on the
market edged 0.5% higher to a 3-1/2 year high of 192,000 units.
- HPQ shares rallied today after reporting fiscal
second-quarter earnings (slightly ahead of schedule) that were
roughly in line with Street estimates. The company also announced
reduce its workforce
by 11,000 to 16,000 jobs, bringing the breadth of its
restructuring efforts to up to 50,000 workers.
- Speaking at the St. Petersburg International Economic Forum,
Russian President Vladimir Putin criticized the U.S. for levying
sanctions against his country, which he said are having a "real
impact." He did, however, express
hopes for improved relations
with Ukraine, as well as an improved business relationship with
(Reuters, via Yahoo! News)
- How one trader placed a $2.5 million bet on a sharp move in
Bank of America Corp (
- Options players -- particularly on the call side of the fence
-- are taking advantage of low premium prices in
Groupon Inc (GRPN)
For a look at today's options movers and commodities
activity, head to page 2.
Oil futures surged into today's close, as traders wagered on
increased energy demand for the summer driving season. The July
contract tacked on 61 cents, or 0.6%, to settle at $104.35 per
barrel. Week-over-week, black gold rose 2.3%.
Gold futures moved slightly lower, amid stronger-than-expected
new home sales and continued gains in U.S. stocks. June gold
futures slipped $3.30, or 0.3%, to end the week at $1,291.70 an
ounce, down 0.1% from last Friday's close.
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