"The market's strong momentum continued," summarized Schaeffer's
Senior Equity Analyst Joe Bell, CMT, of a day where the
Dow Jones Industrial Average (DJI)
toppled a millennium level and notched another new all-time high.
"Bulls were inspired by some better-than-expected economic data out
of Germany, as well as a few nice earnings reports."
Continue reading for more on today's market, including
- Another new record for the markets, a vote of confidence for
), and a surge in volatility ahead of Tesla Motors (
Dow Jones Industrial Average (DJI)
continued its unprecedented trend of positive Tuesdays, finishing
higher for the 17th consecutive time. What's more, the Dow enjoyed
its first-ever close north of 15,000 and tagged a new all-time high
of 15,056.67 intraday. By the close, the index was just shy of this
new peak, at 15,056.20, up 87.3 points, or 0.6%. Twenty-three of
the Dow's 30 members moved higher on the day, with Caterpillar (
) leading the advancing majority with a gain of 2.5%. Cisco Systems
(CSCO) dropped 2.1% to bring up the rear, while Wal-Mart Stores
(WMT) was unchanged.
S&P 500 Index (SPX)
tagged another new high of its own, reaching up to 1,626.03 before
ending the session at 1,625.96. The index gained 8.5 points, or
0.5%, on the day. Elsewhere, the
Nasdaq Composite (COMP)
notched a new 12-year high of 3,402.24 intraday but was unable to
hold atop the 3,400 level at the closing bell. The tech-rich index
edged up 3.7 points, or 0.1%, to end the day at 3,396.63.
CBOE Market Volatility Index (VIX)
managed to break its three-day losing streak, edging up 0.2 point,
or 1.3%, to 12.83. In intraday action, the VIX neared the 13 level,
reaching as high as 12.96.
A Trader's Take
"The strength from small-caps and consumer discretionary names
continued today," noted Bell. "While defensive sectors have led for
much of the year, we've started to see the more higher-risk sectors
take leadership in recent weeks."
3 Things to Know About Today's Market
- Consumer credit
rose by $7.97 billion
in March, as revolving credit (such as credit-card debt) fell for
the first time this year. Analysts had been expecting a more
- Hedge fund manager David Einhorn said his Greenlight Capital
expanded its stake in Apple Inc. (
in anticipation of the "next blockbuster product" from the iPad
and iPhone parent. Einhorn didn't disclose specifically when or
how much AAPL Greenlight added, but at the end of 2012, the fund
held 1.3 million AAPL shares.
- Factory orders in German
rose by 2.2%
in March, surprising economists who were expecting the reading to
drop slightly. The increase, which followed a similar lift in
February, is indicative of improving manufacturing trends in the
(San Francisco Chronicle)
5 Stocks We Were Watching Today
- Bullish option traders expect
in Cisco Systems (CSCO).
- Just a few short days after its NYSE debut, T-Mobile US, Inc.
has won over
the call-buying crowd.
- Tesla Motors Inc (
volatility hit new annual highs
ahead of the vehicle manufacturer's earnings report.
- Apple Inc. (
) bulls used
weekly call options
to bet on a short-term bounce.
- J.C. Penney Company (JCP) was initiated with
a lackluster "underperform" rating
at Wells Fargo this morning.
For a look at today's options movers and commodities
activity, head to page 2.
Crude oil's short winning streak drew to an end today, following
reports that Saudi Arabia's crude production rose in April.
June-dated oil lost 54 cents, or 0.6%, to cease trading at $95.62
Gold was also in the red, as investors reacted to news of
selling pressure at gold-related exchange-traded funds (
). By the close, June gold futures had lost $19.20, or 1.3%, to
settle at $1,448.80 an ounce, the lowest settlement price in almost