Dow Spikes 245 to Multi-Year High on ECB, Jobs Data

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At one point this afternoon, the Dow Jones Industrial Average (DJI) was up roughly 246 points, and by the close, the blue-chip barometer solidified a near five-year best settlement. As Schaeffer's Senior Equities Analyst Joe Bell points out, today's action centered around the European Central Bank (ECB) president: "This morning, Mr. Draghi confirmed the rumors and announced that the ECB would buy bonds with maturities shorter than three years. Throw in the news of better-than-expected jobs numbers on the domestic front, and you have a lot of participants buying hand over fist."

Click through to see what else was on our radar today:

And now, a look at the numbers...

CLOSING SUMMARY - INDICES

CLOSING SUMMARY - NYSE AND NASDAQ

The Dow Jones Industrial Average (DJI - 13,292.00) rocketed to its intraday acme of 13,294.13, and maintained all but a few points of this upswing, advancing 244 points, or 1.9%, by the time the dust settled. All 30 blue chips took a step higher today, with Bank of America ( BAC ) and Cisco Systems, Inc. ( CSCO ) leading the bullish parade with gains of 5% and 4.4%, respectively.

In last-minute trading, the S&P 500 Index (SPX - 1,432.12) ran to a more than four-year acme, adding 28.7 points, or 2%, by the closing bell.

Turning in the best performance of its fellow benchmarks, the Nasdaq Composite (COMP - 3,135.81) rallied 66.5 points, or 2.2%, to settle at its highest perch since mid-November 2000.

The CBOE Market Volatility Index (VIX - 15.60) dipped to its lowest close in almost two weeks, peeling back 2.1 points, or 12.1% on the day.

Today's highlight : "I'm not sure if the vocal bears know , but this market just made a new four-and-a-half-year high this morning," said Bell. "Despite the constant naysayers, the resilience of this market has been incredible as the steady uptrend continues."

Turning to today's major market stories...

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

Crude futures turned higher for a second straight day, following the Energy Information Administration (EIA) report of a bigger-than-projected drop in weekly crude supplies. The commodity also found support from the European Central Bank's (ECB) bond-buying program, as well as the upbeat jobs data and payroll report. Although the rally weakened as the session wore on, October-dated oil added 17 cents, or 0.2%, to end at $95.53 a barrel.

The ECB's plan to aid economically strapped euro-zone nations also buoyed gold futures today. While the euro strengthened with the news, gold for December delivery gained $11.60, or 0.7%, to settle at $1,705.60 an ounce. This marked precious metal's highest point since March 9.

Levels to watch in trading...

  • Dow Jones Industrial Average (DJI - 13,292.00) - support at 11,500; resistance at 14,000
  • S&P 500 Index (SPX - 1,432.12) - support at 1,100; resistance at 1,500
  • Nasdaq Composite (COMP - 3,135.81) - support at 2,400; resistance at 3,400

OUTPERFORMING AND UNDERPERFORMING SECTORS

STOCKS - MOVERS

STOCKS - EARNINGS

STOCKS - NOTABLE CALL ACTIVITY

STOCKS - NOTABLE PUT ACTIVITY

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: AMZN , BAC , CSCO , GOOG , VRSN

Schaeffer's Investment Research

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