Dow Jumps 114 to Move Back Above 15,000

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"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 period." The 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 :

plus...
    Two central-bank officials offer soothing words, pending home sales surprise to the upside, and DISH Network ( DISH ) 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 ( HPQ ), which added 3.2%. In negative territory were Johnson & Johnson ( JNJ ) and Coca-Cola (KO), down 0.3% and 0.2%, respectively.

The 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 SPX.


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%.

CLOSING SUMMARY - INDICES

CLOSING SUMMARY - NYSE AND NASDAQ

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 -- both 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. (Barron's)
  • 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 soared 6.7% 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. (CNBC)

5 Stocks We Were Watching Today :

  1. Our Weekly Contrarian : Is EMC Corporation (EMC) vulnerable to a shift in sentiment?
  2. Amid reports of wireless connectively issues for MacBook Air users, Apple Inc. (AAPL) faced another price-target reduction.
  3. DISH Network ( DISH ) rallied to a new five-year high -- and attracted call traders -- after dropping its bid to buy Clearwire Corporation (NASDAQ:CLWR)..
  4. Weekly NIKE, Inc. (NKE) put options were popular ahead of the company's earnings report.
  5. As gold prices continued to tumble, Newmont Mining (NEM) saw an influx of long-term puts change hands.

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 :

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 barrel.

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 ounce.

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: BAC , DISH , HPQ , JNJ , T

Schaeffer's Investment Research

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