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
- David Tepper waxes optimistic, U.S. import prices decline,
and the White House denies everything.
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 (
) 2.8% rise. Meanwhile, UnitedHealth Group Inc. (
) paced the three decliners, down 1.1%, and Cisco Systems, Inc. (
) finished flat ahead of
tomorrow's turn in the earnings confessional
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,
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.
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.
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."
- 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 --
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.
5 Stocks We Were Watching Today
- Ford Motor Company (
) option traders see
new highs ahead
- Bulls converged on Kohl's Corporation (KSS) ahead if its
turn in the earnings spotlight
- Options speculators
expect a steeper pullback
for Intel Corporation (INTC).
- Netflix, Inc.'s (NFLX) new high fueled
accelerated call buying
- One optimist
upped the bullish ante
on NVIDIA Corporation (NVDA).
For a look at today's options movers and commodities
activity, head to page 2.
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.
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