"For the second day in a row, it was all about Mario. News
reports surfaced that European Central Bank President Mario Draghi
is considering additional stimulus, with bond buys, a rate cut, and
a new long-term refinancing operation program all on the table,"
noted Schaeffer's Senior Equities Analyst Joe Bell. "We also got
word that German Chancellor Merkel took time away from her vacation
to speak with the French president, and all indications point
toward an agreement to do what it takes to support the euro zone."
Closer to home, the
Dow Jones Industrial Average (DJI)
made it two days of triple-digit gains, rising more than 229 points
to its session peak.
Keep reading to see what else was on our radar today:
And now, a look at the numbers...
The
Dow Jones Industrial Average (DJI - 13,075.66)
rocketed to its intraday high of 13,117.74 in afternoon trading
today, and held on to most of its gains when all was said and done.
The Dow marked its loftiest daily close since May 3, jumping 187.7
points, or 1.5%. All 30 blue chips climbed higher today, with Merck
& Co., Inc.'s (
MRK
) earnings-related 4% rise leading the charge. The Dow enjoyed a
weekly return of 1.9%.
The
S&P 500 Index (SPX - 1,385.97)
also ended at its highest point since May 3, surging roughly 26
points, or 1.9%. Meanwhile, the
Nasdaq Composite (COMP - 2,958.09)
turned in the best performance of its fellow benchmarks, soaring
64.8 points, or 2.2%. On the week, the SPX tacked on 1.7%, and the
COMP increased 1.1%.
The
CBOE Market Volatility Index (VIX - 16.70)
suffered its third straight pullback, lopping off 4.7% and closing
just atop its daily low of 16.52. The VIX was still able to notch a
2.6% win for the week.
Today's highlight
: "We finally broke free of the recent trading range," acknowledged
Bell. "The SPX cleared its hurdle near the 1,380 area, while the
Dow shot above the round-number 13,000 level. Both respective
indices have taken out their previous June and July peaks, which is
a good sign for the market as July comes to a close."
Turning to today's major market stories...
For today's activity in commodities, options, and more, head
to page 2.
Crude futures were up for a fourth session in a row today,
despite an expected dip in the U.S. economy. As traders applauded
Germany and France's move to support the euro, the greenback
weakened, giving the dollar-denominated commodity a welcome boost.
By the close, oil for September delivery gained 74 cents, or 0.8%,
to end at $90.13 a barrel. For the week, though, oil slid 1.4%.
Up now for three days, gold futures were also able to fight off
early GDP-related weakness on the upbeat sentiment surrounding the
euro. As the dollar took a hit, August-dated gold inched up $2.90,
or 0.2%, to settle at $1,618 an ounce -- a new three-week high. The
precious metal notched a 2.2% rise for the week.
Levels to watch in trading...
-
Dow Jones Industrial Average (DJI - 13,075.66)
- support at 11,500; resistance at 14,000
-
S&P 500 Index (SPX - 1,385.98)
- support at 1,100; resistance at 1,500
-
Nasdaq Composite (COMP - 2,958.09)
- support at 2,400; resistance at 3,400
Click the links for coverage on today's
notable annual highs
and
notable annual lows
.
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