Dow Jones Industrial Average (DJI)
traded comfortably higher throughout the day, as investors
celebrated a round of stronger-than-expected employment data. While
a significant, fiscal-cliff induced drop in consumer sentiment
tempered the optimism around midday, the blue chips picked up steam
again in the final hour of trading. However, not all was rosy on
Wall Street; Apple (
) led a tech-sector retreat, dragging the Nasdaq Composite (COMP)
into the red for the week.
Continue reading for more on today's market events,
Daily Game Plan
: What can bonds and commodities tell us about the
collective risk appetite
? Senior Trading Analyst Bryan Sapp has the answers.
Chart of the Day
: Is this rare-earth stock
ripe for a major move
on the charts? Senior Options Strategist Tony Venosa, CMT, thinks
: Senior Technical Strategist Ryan Detrick debunks the
top five trading myths of 2012
Everything You Need to Know
: Your one-stop shop for levels to watch, economic data, earnings
reports, stocks on the move, and commodities action.
Dow Jones Industrial Average (DJIA)
ended higher for a third session in a row, tacking on 81.1 points,
or 0.6%, to settle just off an intraday peak. Among the index's 30
blue chips, just six sat out the rally; Intel (
) finished flat, while Microsoft (
) paced the five laggards with a 1% drop. On the flip side,
JPMorgan Chase (
led the bullish majority with a 2.6% gain. For the week, the Dow
advanced 1%, ending north of its 10-week moving average for the
first time in two months.
S&P 500 Index (SPX)
also ended near a session high, gaining 4.1 points, or 0.3%. For
the week, the broad-market barometer advanced 0.1%. On the other
hand, the tech-rich
Nasdaq Composite (COMP)
spent most of the day in the red, surrendering 11.2 points, or
0.4%, and bringing its weekly deficit to 1.1%.
CBOE Market Volatility Index (VIX)
finished roughly 4.1% lower, relatively flat with last week's
A Trader's Take
More specifically, "The nonfarm payrolls increase of 146,000 had
to be one of the best things about today's market, as it came in
well above the estimated 80,000 jump," he added. "Most sectors
responded favorably to this jobs report, but Apple and many other
technology stocks continued to struggle."
Economic and Earnings News
Nonfarm payrolls grew by a seasonally adjusted 146,000 in
November, according to the Labor Department, as Superstorm Sandy
did not "substantively" impact the national jobs market. Meanwhile,
the unemployment rate backpedaled to 7.7% from October's perch at
7.9%. Economists expected a payrolls increase of just 80,000 on
7.9% joblessness. However, payrolls for September and October were
downwardly revised by a total of 49,000.
The Thomson Reuters/University of Michigan consumer sentiment
index fell to 74.5 in early December, down from November's final
reading of 82.7. The pullback was far steeper than anticipated, as
economists expected the index to arrive at 82.0. The sentiment
gauge is now resting at its lowest level since August.
More Stocks Making News
For today's activity in commodities, options, and more, head
to page 2.
In the Options Pits
Oil futures finished lower for a fourth straight session,
erasing early gains on lackluster consumer sentiment data and a
stronger U.S. dollar. Furthermore,
Bundesbank's downwardly revised growth forecast
for Germany also weighed on demand prospects for black gold. By the
close, January-dated crude gave up 33 cents, or 0.4%, to end at
$85.93 per barrel. For the week, oil lost 3.4%.
Gold futures, on the other hand, edged higher in spite of a
strengthening greenback. By the bell, gold for February delivery
tacked on $3.70, or 0.2%, to finish at $1,705.50 an ounce. For the
week, however, the malleable metal lost 0.4%.
At the end of every market day, the staff at Schaeffer's
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