"Strong European returns sparked by a big improvement in the
German investor confidence index got things started off in the
right direction early," said Schaeffer's Senior Technical
Strategist Ryan Detrick, CMT, on today's market, which saw the
Dow Jones Industrial Average
close above 14,000 for the first time since early last week and hit
a new five-year high in the process. "It was a relatively quiet day
on the news front though ... but that couldn't stop the new highs
across the board, specifically new all-time highs in small and
Continue reading for more on today's market, including
- Our Senior Trading Analyst Bryan Sapp says tomorrow and
Thursday "should prove eventful" and highlights
levels to watch
- How Google (
) hitting a new all-time high
in the option markets.
- Staples got (
a big boost
from merger talks, which turned into bullish action among option
- A big day in the markets, a dire presidential warning, and
how one trader is looking for a better buyout price for computer
maker Dell Inc. (
Buoyed by encouraging news out of Europe and potential news of
another big merger, the
Dow Jones Industrial Average
got off to a rip-roaring start and never quit -- finishing up
nearly 54 points, or 0.4%, to close at 14,035.67. The day saw the
Dow touch a new five-year high and close above 14,000 for the first
time since Feb. 12. Cisco Systems (
) led the 22 advancers on the 30-member Dow, jumping 2.2%. Alcoa (
) had the biggest drop of the eight decliners, losing 2.8%.
S&P 500 Index
also had a strong day, gaining 11 points, or 0.7%, to close at its
intraday high of 1,530.94, also a five-year peak. The
finished at 3,213.59, up nearly 22 points, or 0.7%.
CBOE Volatility Index (VIX)
finished at 12.31, down about 0.2 point, or 1.2%.
A Trader's Take
"Last week we saw Warren Buffett buy H.J. Heinz Company (HNZ),
and this week we were greeted by a potential merger of Office Depot
(ODP) and OfficeMax (OMX)," Detrick said. "This is yet another sign
that merger and acquisition activity is alive and well and that the
market continues to think there are tremendous values out there --
even though we are at multi-year highs."
3 Things to Know About Today's Market
- President Obama
that the impending so-called "sequester" -- the automatic
spending cuts set to go into effect March 1 -- could cause the
federal government to shed jobs, which could mean "the
unemployment rate might tick up again."
- Confidence among homebuilders
in February but remained near the six-year high set last month.
- Sony Corporation (ADR) (SNE) is set to
its new PlayStation 4 on Wednesday, beating both Nintendo (NTDOY)
and Microsoft (MSFT) to market with the latest iteration of
5 Stocks We Were Watching Today
- Option traders bet that Humana Inc. (HUM) would continue
on the charts.
- First Solar (FSLR) was
by short-term bulls looking to cash in on the stock's sudden
- One investor
bucked the trend
on SodaStream International (SODA) and laid down a pre-earnings
bull put spread.
- Another bold investor put down
a big bet
that there would be a higher buyout bid for computer maker Dell
- A new annual high from SunPower Corporation (SPWR) created
a flurry of long calls,
as traders look for the stock to go even higher.
For a look at today's options movers and commodities
activity, head to page 2.
A weaker U.S. dollar helped crude oil futures rebound from last
Friday's drop, with the soon-to-expire March contract adding 80
cents, or 0.8%, to close at $96.66 per barrel.
April-dated gold dropped $5.30, or 0.3%, to $1,604.20 an ounce
(another new six-month low). This continued a downward trend for
gold, with investors turning their buying power toward
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
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