"Rumors of China's GDP report coming in better-than-expected
made the rounds today, and it didn't take long for the momentum to
pick up," pointed out Senior Equity Analyst Joe Bell. "After five
consecutive down days on the S&P 500, this marks the second
straight session of a new winning streak for the index." The Dow
Jones Industrial Average (DJI) also enjoyed another triple-digit
jump. "Let's hope this isn't a 'buy the rumor, sell the news,'"
Keep reading to see what else was on our radar today:
And now, a look at the numbers...
high hopes for China
can do for the markets.
Bell sounded off on Google (
) ahead of earnings.
- Adam Warner explained
how savvy contrarians should trade -- or not -- in
- Plus, Equities Analyst Tony Venosa highlighted some potential
regional bank stocks
Dow Jones Industrial Average (DJI - 12,986.58)
knocked on 13,000's door today with a 181.2-point, or 1.4%, surge
higher. In the last minutes of trading, the Dow tagged its session
peak of 12,986.96. Hewlett-Packard (
) paced the 26 winning blue chips with a 7.2% jump, while
) led the four underperformers with a 0.9% dip.
S&P 500 Index (SPX - 1,387.57)
finally found a foothold atop
the 1,375 level
. By the time the dust settled, the SPX gained 18.9 points, or
1.4%. Meanwhile, the
Nasdaq Composite (COMP - 3,055.55)
put on 39 points, or 1.3%.
CBOE Market Volatility Index (VIX - 17.20)
-- widely regarded as the market's fear gauge -- headed south for a
second day, backpedaling 14.1% to close at its session low of
First-time unemployment claims
spiked by 13,000 last week to a seasonally adjusted 380,000, said
. By contrast, economists were looking for initial jobless claims
to rise by just 1,000 to 358,000. Additionally, the
producer price index (PPI)
was unchanged in March, suggesting to some hopeful investors that
policymakers might have
leeway for more easing
Also, the weekly survey from the
American Association of Individual Investors
showed that the number of bullish investors dropped by roughly 10%
to read more.
: "With China news dominating the headlines, the casual observer
might have forgotten about Google," explained Bell. "We had a short
day-long break after Alcoa's better-than-expected report, but the
tech behemoth that seems to do everything right is on tap to unveil
earnings tonight. Given the strong two-day bounce, the combination
of China and
Google's quarterly results
could make things interesting tomorrow."
Turning to equities in focus...
For today's activity in commodities, options, and more, head
to page 2.
Crude futures continued to rally today. The dollar-denominated
commodity was supported by a weakening greenback, as disappointing
jobless claims data prompted speculation about another potential
round of quantitative easing. Oil for May delivery gained 94 cents,
or 0.9%, to settle at $103.64 a barrel.
Gold futures easily erased Wednesday's minor loss, catching a
lift from the upswing in the broader equities market and a
faltering dollar. June-dated gold jumped $20.30, or 1.2%, to land
at $1,680.60 an ounce.
Levels to Watch in Trading
- Dow Jones Industrial Average (DJIA - 12,986.58) - support
at 11,500; resistance at 14,000
- S&P 500 Index (SPX - 1,387.57) - support at 1,100;
resistance at 1,500
- Nasdaq Composite (COMP - 3,055.55) - support at 2,400;
resistance at 3,400
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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