Dow Muscles Higher Again: Next Stop, 14,000

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"Given some seemingly negative economic news," Schaeffer's Senior Equity Analyst Joe Bell noted, "the market showed great resilience. This is an indication," he added, "that perhaps not all money from the sidelines has moved into this market just yet." The Dow Jones Industrial Average (DJI) shook off yesterday's modest declines and powered forward today, once again touching its highest point in half a decade. The index is now staring down a new millennium level; 14,000 hasn't been conquered on an intraday basis since October 2007.

Continue reading for more on today's market, including :

plus...
  • Consumer confidence drops, Ford Motor ( F ) reports earnings, and Boeing ( BA ) speculators place bearish bets.

The Dow Jones Industrial Average (DJI) brushed off yesterday's slow start and picked up where it left off last week, closing at 13,954.42 when the bell rang, up nearly 73 points, or 0.5%. Drug-maker Pfizer Inc. ( PFE ) helped push the charts by beating the Street's estimates for sales and issuing a rosy outlook for the rest of 2013. Overall, there were 20 advancers against nine stragglers in the 30-member Dow, with General Electric Company ( GE ) breaking even. PFE was the top performer, up 3.2%, while Hewlett-Packard (HPQ) struggled with a 3.2% loss.

The S&P 500 Index (SPX) also bounced back after Monday's losses, closing up at 1,507.84, climbing nearly 8 points, or 0.5%, and hitting a new intraday high. And the SPX seems to have found new support above 1,500, closing there for the third straight session after testing this round-number level intraday. The Nasdaq Composite (COMP) had a late rally after spending most of the day in the red, but still finished down at 3,153.66, falling less than 1 point.

The CBOE Volatility Index stepped back from yesterday's big jump, falling 1.9% to close at 13.31. Still, it marked the second straight day of closing above 13, which hasn't happened in two weeks.

CLOSING SUMMARY - INDICES

CLOSING SUMMARY - NYSE AND NASDAQ

A Trader's Take :

"Earnings reactions once again took the headlines," Bell noted, "resulting in mixed price action for the overall broad market. The energy sector led the way," he observed, "and it has quietly been a bright spot in this year's surging market."

3 Things to Know About Today's Market :

  • The Conference Board's Consumer Confidence Index fell significantly once again, dropping to 58.6 from a revised 66.7 in December. Officials with the economic agency said that the 2% payroll tax hike that went into effect on Jan. 1 had an effect: "Consumers are more pessimistic about the economic outlook and, in particular, their financial situation." (MarketWatch)
  • Oil and gas giant BP plc (ADR) (BP) agreed to plead guilty to manslaughter and pay $4 billion for its role in the 2010 Deepwater Horizon oil rig explosion and subsequent oil spill. (USA Today)
  • Automaker Ford Motor Company ( F ) turned in earnings of 31 cents per share, up from 20 cents in the previous year and 6 cents better than analysts were predicting. The stock lost ground on the day, however, as it warned of weakness in Europe for the current year. (CNBC)

5 Stocks We Were Watching Today :

  1. Department store chain J.C. Penney Company, Inc. (JCP) was a big play for options traders , who were looking to cash in on the company's move to bring back sale promotions.
  2. Juniper Networks, Inc. (JNPR) saw the bears move in , especially for front-month puts.
  3. The bears were also out for The Boeing Company ( BA ) ahead of the aircraft maker's earnings release and in light of ongoing woes around the 787 Dreamliner battery saga.
  4. Speculators also bet Tractor Supply Company (TSCO) would fall in the short term, especially with the company's upcoming earnings report.
  5. Trina Solar Limited (ADR) (TSL) saw a big uptick in optimistic bets for February, with bulls running against recent bearish trends on the stock.

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 moved higher once again, settling at a new four-month high of $97.57 per barrel. The March contract added $1.13, or 1.2%, on the day. Gold managed to advance as well; February futures rose $7.90, or 0.5%, to close at $1,660.80 an ounce.

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.

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This article appears in: Investing , Options

Referenced Stocks: AMRN , BA , F , GE , PFE

Schaeffer's Investment Research

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