Dow Rockets 203 Points, Ekes Out a Positive Finish for the Week

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The Dow Jones Industrial Average (DJI) broke out of its funk today, and managed to shed a weeks' worth of losses in one session. "The big news early on was the market's reaction to earnings reports from JPMorgan Chase & Co. ( JPM ) and Wells Fargo & Company ( WFC )," stated Schaeffer's Senior Equities Analyst Joe Bell. "There was also a lot of focus on the Chinese GDP data, which came in pretty much in line. In turn, this increased expectations that China will implement some sort of stimulus to their economy."

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

  • 3 ways to trade Goldman Sachs ahead of next week's quarterly results.
  • Who made the list of companies that have lowered their earnings expectations ?
And now, a look at the numbers...

CLOSING SUMMARY - INDICES

CLOSING SUMMARY - NYSE AND NASDAQ

The Dow Jones Industrial Average (DJI - 12,777.09) charged higher this morning and never looked back, staging a remarkable 203.8-point, or 1.6%, climb when all was said and done. The Dow finished the session just off of its intraday peak of 12,784.73, which was tagged in the last half hour of trading. All but one blue chip claimed victories today, as JPM's earnings-induced 6% gain led the bullish majority. Hewlett-Packard Company ( HPQ ) suffered a 1.9% drop at the hands of a negative analyst note. The Dow fought hard and recorded a 0.04% rise for the week, which effectively erased its six previous sessions in the red.

The S&P 500 Index (SPX - 1,356.78) surged higher for the day as well, jumping 22 points, or 1.7%, to find its first win out of the last seven days. Meanwhile, the Nasdaq Composite (COMP - 2,908.47) enjoyed a boost, leaping 42.3 points, or 1.5%. For the week, the SPX settled 0.2% higher, while the COMP notched a roughly 1% loss.

The CBOE Market Volatility Index (VIX - 16.74) ripped off 8.7% today, ending just atop its session low of 16.36. This marks the worst daily close for the VIX since July 3. The market's fear gauge retreated 2.1% for the week.

Today's highlight : "The SPX's losing streak finally came to an end, and the Dow posted its first triple-digit gain in July," remarked Bell. "Financials led the way today, with coal and energy stocks posting nice gains as well."

Turning to today's major market stories...

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

Oil futures enjoyed a third session win today, initially boosted by China's GDP data and an ailing dollar. But after news broke that the U.S. expanded its sanctions on Iran, the commodity amplified its gains. Crude for August delivery jumped $1.02, or 1.2%, to settle at $87.10 a barrel. For the week, black gold increased 3.1%.

Thanks to the well-received economic growth report out of China, gold futures reversed their recent slide, and ended at their best price in a week. As the greenback dipped, August-dated gold tacked on $26.70, or 1.7%, to close at $1,592 an ounce. The malleable metal turned in a weekly rise of 0.8%.

Levels to watch in trading...

  • Dow Jones Industrial Average (DJI - 12,777.09) - support at 11,500; resistance at 14,000
  • S&P 500 Index (SPX - 1,356.78) - support at 1,100; resistance at 1,500
  • Nasdaq Composite (COMP - 2,908.47) - support at 2,400; resistance at 3,400

OUTPERFORMING AND UNDERPERFORMING SECTORS

STOCKS - MOVERS

STOCKS - EARNINGS

STOCKS - NOTABLE CALL ACTIVITY

STOCKS - NOTABLE PUT ACTIVITY

Click the links for coverage on today's notable annual highs and notable annual lows .

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: FB , HPQ , JPM , PNRA , WFC

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