Dow Tags Record High in 18th Straight Tuesday Win

By
A A A

The Dow Jones Industrial Average (DJI) found its way to yet another record high, adding triple digits and marking its "18th straight Tuesday win," noted Schaeffer's Senior Technical Strategist Ryan Detrick, CMT. "This streak is second only to Wednesday's run of 24 positive days back in 1968." In fact, the blue-chip barometer is already 2.5% higher this month, as "the 'Sell in May and Go Away' mentality lasted all of one day. Since a big drop on May 1, this market has shown incredible resiliency."

Continue reading for more on today's market, including :

plus...
  • David Tepper waxes optimistic, U.S. import prices decline, and the White House denies everything.

The Dow Jones Industrial Average (DJI) extended its rally as the session progressed, adding 123.6 points, or 0.8%, to end at 15,215.25 -- just a hair's breadth from its fresh record high of 15,219.55. All but four of the Dow's 30 blue chips settled in the black, led by Bank of America Corp's ( BAC ) 2.8% rise. Meanwhile, UnitedHealth Group Inc. ( UNH ) paced the three decliners, down 1.1%, and Cisco Systems, Inc. ( CSCO ) finished flat ahead of tomorrow's turn in the earnings confessional .

The S&P 500 Index (SPX) also settled near a session high, adding 16.6 points, or 1%, to end at 1,650.34. Just before the closing bell, the broad-market barometer tagged an all-time peak of 1,651.10. In similar fashion, the Nasdaq Composite (COMP) muscled to a new 12-year acme of 3,468.67, before settling on a gain of 23.8 points, or 0.7%, at 3,462.61.

The CBOE Market Volatility Index (VIX) edged 0.2 point, or 1.8%, higher, ending at 12.77. However, the market's "fear gauge" remains south of its 10-day moving average, which has stifled all but one daily close since April 19.

CLOSING SUMMARY - INDICES

CLOSING SUMMARY - NYSE AND NASDAQ

A Trader's Take :

"David Tepper was on CNBC this morning and continues to pound the bullish drum," remarked Detrick. "He's been very right, and there were rumors yesterday he was going to be more bearish. He got things off on the right foot, but as the day wore on we saw some big-time selling from longer-term bonds and moves into stocks. It's tough to pick the exact reason we made new highs yet again; sometimes it's as simple as 'we're in a bull market.'"

3 Things to Know About Today's Market :

  • Hedge-fund bigwig David Tepper is still bullish on stocks , to say the least. In a "Squawk Box" interview on CNBC, the founder and president of Appaloosa Management opined, "The economy is getting better, autos are better, housing's better," and said he's not worried about the Fed tapering its accommodative stance. Otherwise, "like guys that are short, they better have a shovel to get themselves out of the grave." (CNBC)
  • U.S. import prices declined 0.5% in April, matching economists' expectations. On a year-over-year basis, import prices are down 2.6%. Exports, meanwhile, fell 0.7% last month -- the largest monthly decrease since June 2012 -- and 0.9% year-over-year. (Bureau of Labor Statistics)
  • Jay Carney could be the busiest man in Washington, D.C. , this week. The White House press secretary reiterated that the president was aware of neither the Internal Revenue Service's (IRS) targeting of conservative groups -- now under investigation by Attorney General Holder -- nor the Justice Department's collection of Associated Press (AP) phone records. (Bloomberg)

5 Stocks We Were Watching Today :

  1. Ford Motor Company ( F ) option traders see new highs ahead .
  2. Bulls converged on Kohl's Corporation (KSS) ahead if its turn in the earnings spotlight .
  3. Options speculators expect a steeper pullback for Intel Corporation (INTC).
  4. Netflix, Inc.'s (NFLX) new high fueled accelerated call buying .
  5. One optimist upped the bullish ante on NVIDIA Corporation (NVDA).

EARNINGS

For a look at today's options movers and commodities activity, head to page 2.

STOCKS - NOTABLE CALL ACTIVITY

STOCKS - NOTABLE PUT ACTIVITY

Commodities :

Crude futures extended their losing streak to a fourth consecutive session, after the International Energy Agency (IEA) warned that record-high North American oil production will trigger a "supply shock" in the market. Oil for June delivery gave up 96 cents, or 1%, to end the day at $94.21 per barrel.

Gold futures also fell, with the safe-haven asset losing ground amid strength in both stocks and the U.S. dollar. June-dated gold shed $9.80, or 0.7%, to close at $1,424.50 per ounce -- its lowest finish since April 24.

SCHAEFFER'S MARKET POSTURE



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: BAC , CSCO , F , TSLA , UNH

Schaeffer's Investment Research

Schaeffer's Investment Research
  • See all for Schaeffer's Investment Research
  • View Print Version

More from Schaeffer's Investment Research:

Related Videos

Stocks

Referenced

Most Active by Volume

112,007,213
  • $14.79 ▼ 2.12%
79,492,830
  • $17.05 ▲ 0.24%
63,236,947
  • $56.63 ▲ 7.54%
55,553,482
  • $3.41 ▼ 3.94%
53,662,885
  • $14.19 ▼ 3.47%
52,606,858
  • $100.75 ▲ 0.64%
39,074,810
  • $4.84 ▼ 2.22%
38,681,912
  • $25.62 ▲ 0.79%
As of 9/30/2014, 04:15 PM

Find a Credit Card

Select a credit card product by:
Select an offer:
Search
Data Provided by BankRate.com