Dow Jumps 155 Points as Euro-Zone Rumor Mill Spurs Optimism

By
A A A

As the market continues to weather rumor-driven volatility this week, every down day seems to be met with an up day. And so it follows that the Dow Jones Industrial Average (DJI) enjoyed a triple-digit bounce today, reclaiming much more than it burned off in the previous session. "While the market was in the green for most of the day, we saw a late surge after word surfaced that European central banks are preparing for a coordinated action to provide liquidity (if needed) after this weekend's Greek elections," noted Schaeffer's Senior Equity Analyst Joe Bell. "The market liked what it heard and had a strong showing in the last hour."

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

  • A falling wedge: Will the S&P 500 Index ( SPX ) topple the 1,333 level ?
  • With Wall Street abuzz on the euro-zone, stocks fight for weekly wins .
And now, a look at the numbers...

CLOSING SUMMARY - INDICES

CLOSING SUMMARY - NYSE AND NASDAQ

In the last hour of trading, the Dow Jones Industrial Average (DJI - 12,651.91) soared to a session peak of 12,698.68. But by the closing bell sounded, the Dow had backpedaled slightly, settling up 155.5 points, or 1.2%. All but two of the 30 blue chips rallied today, as Travelers ( TRV ) and Home Depot ( HD ) paced the outperformers with gains of 2.4% and 2.3%, respectively. Meanwhile, Boeing ( BA ) gave back 0.3%, while American Express ( AXP ) dropped 0.1%.

The S&P 500 Index (SPX - 1,329.10) leapt into positive territory, tacking on 14.2 points, or 1.1%. The Nasdaq Composite (COMP - 2,836.33) also finished in the black, increasing by 17.7 points, or 0.6%.

The CBOE Market Volatility Index (VIX - 21.68) retreated 10.7% today, closing just above its session nadir of 21.55.

Today's highlight bad news out of Europe in contention with the 1,333 level once again

Turning to today's major market stories...

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

Oil futures reversed yesterday's pullback after data showing a drop in consumer prices and an uptick in weekly unemployment fueled hopes that the Federal Reserve will soon implement another round of economic stimulus. Also, the Organization of the Petroleum Exporting Countries (OPEC) agreed in a meeting to keep its oil-production ceiling unchanged. By the close, July-dated crude added $1.29, or 1.6%, to settle at $83.91 a barrel.

Likewise, gold futures finished trading just above breakeven, marking a week's worth of wins in the process. The commodity endured a volatile session, as speculators weighed today's domestic data and the potential for another bout of quantitative easing against the ongoing economic turmoil in the euro zone. Against this backdrop, gold for August delivery inched up 20 cents, or 0.4%, to land at $1,619.60 an ounce.

Levels to Watch in Trading :

  • Dow Jones Industrial Average (DJI - 12,651.91) - support at 11,500; resistance at 14,000

  • S&P 500 Index (SPX - 1,329.10) - support at 1,100; resistance at 1,500

  • Nasdaq Composite (COMP - 2,836.33) - 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: AXP , BA , HD , SPX , TRV

Schaeffer's Investment Research

Schaeffer's Investment Research
  • See all for Schaeffer's Investment Research
  • View Print Version

More from Schaeffer's Investment Research:

Related Videos

Stocks

Referenced

Most Active by Volume

113,590,482
  • $14.98 ▼ 1.77%
57,689,941
  • $94.67 ▼ 0.37%
51,501,990
  • $3.31 ▼ 2.07%
46,645,770
  • $96.13 ▲ 0.55%
42,212,567
  • $72.36 ▼ 0.40%
39,428,076
  • $25.35 ▲ 0.80%
36,799,747
    $37 unch
36,459,390
  • $44.13 ▼ 2.35%
As of 8/1/2014, 04:03 PM