Dow Evades Seventh Down Day With 135-Point Rally; G8 Wants Greece to Stay

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"Early reports from this weekend's Group of Eight (G8) meeting suggested leaders would like to keep the euro zone together, and most participants seemed to favor growth," said Schaeffer's Senior Equity Analyst Joe Bell. "Overseas markets showed their strength this morning and U.S. stock markets followed suit on a day where almost every sector participated." By the closing bell, the Dow Jones Industrial Average (DJI) ended its recent streak of weakness with a decided triple-point ascent.

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

  • Schaeffer's Equities Analyst Bryan Sapp isn't buying the market's rebound just yet .
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And now, a look at the numbers...

CLOSING SUMMARY - INDICES

CLOSING SUMMARY - NYSE AND NASDAQ

The Dow Jones Industrial Average (DJI - 12,504.48) leapt 135.10 points, or 1.1%, today, landing just below its session high of 12,508.11 -- tagged in the last hour of trading. All but seven of the Dow's 30 components settled with wins, as Boeing Company ( BA ) and Caterpillar ( CAT ) led the outperforming majority with gains of 3.8% and 3.7%, respectively. JPMorgan Chase ( JPM ) paced the losing blue chips with a 2.9% loss.

The S&P 500 Index (SPX - 1,315.99) trekked 20.8 points, or 1.6%, higher by the close, solidifying its perch atop the 1,300 level. Meanwhile, the Nasdaq Composite's (COMP - 2,847.21) 68.4-point, or 2.5%, jump was the best performance of its fellow benchmarks.

The CBOE Market Volatility Index (VIX - 22.02) fell 12.3% today, to close just off its session low of 22.01. However, the VIX was able to keep its head well above the 20 mark.

Today's highlight : "We came into the session oversold on most of the major indices, so a bounce here wasn't a big surprise ," suggested Bell. "What was a surprise is that we were able to hold onto our early gains and rally into the close, something the market struggled with last week."

Turning to today's major market stories...

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

Oil futures reversed their six-day pullback and surged higher today, as the Group of Eight (G8) reiterated their desire to see Greece maintain its status as a euro-zone member nation. Crude for June delivery gained $1.09, or 1.2%, to close at $92.57 a barrel.

Gold futures, however, were pushed lower as the weekend meeting of the G8 failed to unanimously agree upon how to tackle the persistent European debt crisis. June-dated gold edged lower by $3.20, or 0.2%, to land at $1,588.70 an ounce.

Levels to Watch in Trading :

  • Dow Jones Industrial Average (DJI - 12,504.48) - support at 11,500; resistance at 14,000
  • S&P 500 Index (SPX - 1,315.99) - support at 1,100; resistance at 1,500
  • Nasdaq Composite (COMP - 2,847.21) - support at 2,400; resistance at 3,400

OUTPERFORMING AND UNDERPERFORMING SECTORS

STOCKS - MOVERS

STOCKS - EARNINGS

STOCKS - NOTABLE CALL ACTIVITY

STOCKS - NOTABLE PUT ACTIVITY

For today's notable annual highs and lows, click here .

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: BA , CAT , FB , IWM , JPM

Schaeffer's Investment Research

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