Dow Takes 184-Point Intraday Ride on Bernanke, Earnings

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"The headlines will tell you [the market's gains] had something to do with Bernanke's speech, but don't buy it," remarked Schaeffer's Senior Technical Strategist Ryan Detrick. "The reality is that earnings were pretty good and hardly anybody is expecting much out of stocks currently. That, coupled with the recent uptrend, and we have the makings for a nice summer rally surprise." Indeed, the Dow Jones Industrial Average (DJI) pushed above breakeven just before noon and climbed to its best daily settlement since July 5.

Keep reading to see what else was on our radar today:

  • Stay ahead of the game: 10 Rules to prosperous trading .
  • Is now a good time to fade the recent rally in bonds ?
  • Plus, new signs that the number of stocks at new highs bodes well for the overall market.
And now, a look at the numbers...

CLOSING SUMMARY - INDICES

CLOSING SUMMARY - NYSE AND NASDAQ

The Dow Jones Industrial Average (DJI - 12,805.54) endured a 184-point swing today, touching an session low of 12,645.10 before midday, and finding an intraday high of 12,829.23 in the last hour of trading. By the time the dust settled, the Dow held onto most of its gains, and closed up 78.3 points, or 0.6%. Twenty-six of the Dow's 30 components finished in positive territory, as The Walt Disney Company ( DIS ) led the winning issues with a 3.1% jump. Home Depot, Inc. ( HD ) paced the losing blue chips with a decline of 1.4%.

The S&P 500 Index (SPX - 1,363.67) also moved higher today, solidifying a 10-point, or 0.7%, gain -- which was also the best performance of its fellow benchmarks. Meanwhile, the Nasdaq Composite (COMP - 2,910.04) enjoyed a win as well, leaping 13 points, or 0.5%, by the close.

The CBOE Market Volatility Index (VIX - 16.48) dipped 3.7% today, and settled just atop its session low of 16.09 -- its lowest point since May 1.

Today's highlight : "Although the overall market was higher, some of the Chinese internet names we are bearish on got clobbered," winked Detrick. "Anytime you have that happen, it's a good day."

Turning to today's major market stories...

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

Oil futures notched a week's worth of wins today, snapping back from the uncertainty surrounding Federal Reserve Chairman Ben Bernanke's testimony to Congress. The commodity was also buoyed by ongoing tensions between Iran and the West, as well as supply disruptions in the North Sea. By the close, August-dated crude tacked on 79 cents, or 0.9%, to arrive at $89.22 a barrel -- the loftiest price for black gold since late May.

Gold futures staged a comeback from early losses following the Central Banker's inconclusive comments about economic stimulus. But the damage was done, and gold for August delivery dipped $2.10, or 0.1%, to settle at $1,589.50 an ounce.

Levels to watch in trading...

  • Dow Jones Industrial Average (DJI - 12,805.54) - support at 11,500; resistance at 14,000
  • S&P 500 Index (SPX - 1,363.67) - support at 1,100; resistance at 1,500
  • Nasdaq Composite (COMP - 2,910.04) - support at 2,400; resistance at 3,400

OUTPERFORMING AND UNDERPERFORMING SECTORS

STOCKS - MOVERS

STOCKS - EARNINGS

STOCKS - NOTABLE CALL ACTIVITY

STOCKS - NOTABLE PUT ACTIVITY

Click the links for coverage on today's notable annual highs and notable annual lows .

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.



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This article appears in: Investing , Options

Referenced Stocks: ALGN , DIS , EBAY , FFIV , HD

Schaeffer's Investment Research

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