The bulls showed up in full force today, launching the
Dow Jones Industrial Average (DJI)
and the rest of Wall Street into late-week rally mode. "The focus
was all on jobs," noted Schaeffer's Senior Technical Strategist
Ryan Detrick. "It seems like the dramatically improving weekly
claims finally showed up in the monthly number. Then, throw in a
strong Institute for Supply Management (ISM) number, and it turns
out our economy isn't falling off a cliff like so many have been
planning for."
Keep reading to see what else was on our radar today:
And now, a look at the numbers...
The
Dow Jones Industrial Average (DJI - 13,096.17)
regained its perch atop 13,000 and finished at its loftiest price
since May 3, posting a 217.3-point, or 1.7%, rise. At its session
best of 13,133.18, the Dow was up more than 254 points. All but two
components surged higher today, as Hewlett-Packard Company (
HPQ
) and Kraft Foods Inc (
KFT
) paced the winning issues with gains of 4.1% and 4%, respectively.
Verizon Communications Inc. (
VZ
) was the lone laggard, inching 0.4% lower. McDonald's Corporation
(
MCD
) remained at breakeven. Over the past week, the blue-chip
barometer eked out a 0.2% increase, marking its fourth-straight
weekly gain.
The
S&P 500 Index (SPX - 1,390.99)
pierced the 1,390 mark for the second time in a week today, and
leapt to its highest perch since May 3. By the time the dust
settled, the SPX tacked on 26 points, or 1.9%. Meanwhile, the
Nasdaq Composite (COMP - 2,967.90)
charged to a 58-point, or 2%, victory. The COMP found a foothold
above the 2,960 level, and saw its best finish since July 5. For
the week, the SPX added 0.4% and the COMP gained 0.3%
The
CBOE Market Volatility Index
(VIX - 15.64)
ripped back nearly 11% today, and landed at its session nadir. The
VIX gave up 6.3% on the week and closed at its lowest point since
July 19.
Today's highlight
: "Anytime you can break out to new monthly highs, you have to say
that it was a nice day," grinned Detrick. "At the same time, so
many bears have said the market only rallies on hope of 'QE3.' As
if anything today decreased, the odds of a more drastic stimulus
from the Fed would shortly follow. Well, today's action put that
theory to rest, as buyers stepped up and bought equities."
Plus, check out Ryan's recent
interview with Bloomberg TV
, also featuring Sam Stovall, chief equity strategist at S&P
Capital IQ, and Michael Gayed, investment strategist at Pension
Partners.
Turning to today's major market stories...
For today's activity in commodities, options, and more, head
to page 2.
Comebacks appear to be the theme on Wall Street today, and crude
futures joined in on the action. After yesterday's
European Central Bank-related drop
, the commodity launched to its loftiest price in two weeks on
well-received jobs data and an upbeat service-sector report. As the
dollar faced some weakness, oil for September delivery added $4.27,
or 4.9%, to close at $91.40 a barrel -- its best one-day gain since
late June. For the week, crude increased 1.4%.
Keeping the spirit alive, gold futures also climbed higher today
after trading flat early on. As the greenback took a hit following
the bout of optimistic domestic data, the dollar-denominated
commodity rose. Gold for December delivery added $18.60, or 1.2%,
to end at $1,609.30 an ounce. However, the malleable metal saw a
0.5% loss for the week.
Levels to watch in trading...
-
Dow Jones Industrial Average (DJI - 13,096.24)
- support at 11,500; resistance at 14,000
-
S&P 500 Index (SPX - 1,390.99)
- support at 1,100; resistance at 1,500
-
Nasdaq Composite (COMP - 2,967.90)
- 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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