"Overall, the market seems to be maintaining its nice momentum
from the past couple days," noted Schaeffer's Senior Equity Analyst
Joe Bell, CMT, "although we still remain in a bit of a congestion
Dow Jones Industrial Average (DJI)
enjoyed another triple-digit surge on the day, closed back above
the 15,000 mark, and is on pace for a weekly (and quarterly) gain .
Continue reading for more on today's market, including
- What could lead to "
" tomorrow afternoon, according to Schaeffer's Senior Trading
Analyst Bryan Sapp.
- Seven reasons our Senior Options Strategist Tony Venosa, CMT,
thinks AT&T (
) looks like a
good bearish trading idea
Long-term puts were active
in Bank of America (
) today, as shareholders may have been looking to hedge their
Two central-bank officials offer soothing words, pending home
sales surprise to the upside, and DISH Network (
) is pounced on by call traders.
It was another strong day for the
Dow Jones Industrial Average (DJI - 15,024.49)
, which started higher out of the gate, quickly overtook the 15,000
level, and settled with a gain of 114.4 points, or 0.8%. Still
overhead, albeit barely, are the index's 50-day and 20-day moving
averages. All but two of the blue-chip index's 30 components
settled higher today, led by Hewlett-Packard (
), which added 3.2%. In negative territory were Johnson &
) and Coca-Cola (KO), down 0.3% and 0.2%, respectively.
S&P 500 Index (SPX - 1,613.20)
rallied as well, tacking on 9.9 points, or 0.6%, to run headlong
into its own 50- and 20-day trendlines. The
Nasdaq Composite (COMP - 3,401.86)
climbed 25.6 points on the day, gaining 0.8% to outperform the
CBOE Market Volatility Index (VIX - 16.86)
slid back below the 17 level for the first day in six. At the
close, the index had lost 0.4 point, or 2%.
A Trader's Take
"Stocks were strong from out of the gate, following a strong
personal income report before the market opened," added Bell. "We
also received a better-than-expected pending home sales report,
which helped give equities a nice push. After defensive stocks and
consumer staples led during the past couple of days, it was nice to
see the small-cap names take a leadership role. The Russell 2000
(RUT) will still need to deal with the round-number 1,000 mark
overhead, but it was nonetheless a positive sign for the day."
3 Things to Know About Today's Market
- Two Federal Reserve officials -- Charles Dudley, president of
New York's Federal Reserve Bank and Fed Governor Jerome Powell --
delivered relatively dovish statements
today, further calming fears of an impending rush to taper bond
buying and hike interest rates. Dudley assured investors that, "A
rise in short-term rates is very likely to be a long way off,"
while Powell stated that short-term rates will likely stay near
historical lows even after the bond-buying subsides.
- Initial jobless claims
fell by 9,000
to a seasonally adjusted 346,000 last week, the Labor Department
reported, roughly in line with estimates for a drop to 345,000.
Meanwhile, the National Association of Realtors (NAR) said its
pending home sales index
to a six-year high in May.
(MarketWatch, Yahoo! Finance)
- China posted a 15.5% year-over-year
jump in industrial profits
last month, easily topping economists' expectations. One
economist warned that investors should view this number in
context, however, as leading indicators are weakening.
5 Stocks We Were Watching Today
EMC Corporation (EMC)
vulnerable to a shift in sentiment?
- Amid reports of wireless connectively issues for MacBook Air
Apple Inc. (AAPL)
faced another price-target reduction.
DISH Network (
rallied to a new five-year high -- and attracted call traders --
after dropping its bid to buy Clearwire Corporation
NIKE, Inc. (NKE)
put options were popular ahead of the company's earnings
- As gold prices continued to tumble,
Newmont Mining (NEM)
saw an influx of long-term puts change hands.
For a look at today's options movers and commodities
activity, head to page 2.
Crude futures extended their winning streak to four sessions, as
encouraging economic data bolstered expectations for demand. By the
close, August-dated oil added $1.55, or 1.6%, to end at $97.05 per
On the other hand, gold futures continued their descent, thanks
to a strengthening dollar and a diminished appetite for "safe
haven" investments. By the time the dust settled, gold for August
delivery gave up $18.20, or 1.5%, to finish at $1,211.60 an
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