"Earnings on the whole were solid, and the housing starts data
was a very nice surprise," said Schaeffer's Senior Technical
Strategist Ryan Detrick. "Sure, things aren't great on the economic
front, we all know that. The fact that housing is actually leading
us here is a nice sign that the second half of the year could see
some much better-than-expected growth." After starting the day in
the red, the
Dow Jones Industrial Average (DJI)
turned in a triple-digit return on the day.
Keep reading to see what else was on our radar today:
- Can the
SPDR S&P 500 ETF Trust (NYSEARCA:SPY) overtake
137
?
-
Google Inc (
GOOG
)
: Studying Pre-Earnings Options Plays.
- Plus,
5 tech issues
that
jolted Wall Street
.
And now, a look at the numbers...
By the closing bell, the
Dow Jones Industrial Average (DJI - 12,908.70)
leapt 103.2 points, or 0.8%, landing just below its session peak of
12,921.94 -- tagged in the last minutes of trading. This marks the
Dow's second daily close atop the 12,900 level since May 8. All but
seven of the 30 blue chips ended with gains, as Intel Corporation's
(
INTC
) earnings-induced 3.3% rise lead the winning majority. Bank of
America (
BAC
) paced the six laggards with a 4.9% loss, while The Walt Disney
Company (
DIS
) remained unchanged.
The
S&P 500 Index (SPX - 1,372.78)
notched a positive return as well, tacking on 9.1 points, or 0.7%.
Meanwhile, the tech-rich
Nasdaq Composite (COMP - 2,942.60)
turned in the best performance of its peers, surging 32.6 points,
or 1.1%, by the time the dust settled.
The
CBOE Market Volatility Index (VIX - 16.16)
stayed lower for a second consecutive day, sliding 1.9%. Although
the VIX ended atop its intraday low of 15.69, it notched its lowest
daily settlement since April 3.
Today's highlight
: "It was a very strange day. Even though the markets were higher,
most of the previous leaders didn't do much," noted Detrick. "Take
a look at housing. Great data comes out, market rallies, yet
homebuilders sold off."
Turning to today's major market stories...
For today's activity in commodities, options, and more, head
to page 2.
Oil futures enjoyed a six wins in a row today, as the Energy
Information Administration (EIA) reported a third-straight drop in
crude stockpiles. Also, mounting concerns about Iran continue to be
a boon for the commodity. By the close, crude for August delivery
gained 65 cents, or 0.7%, to settle at $89.87 a barrel -- its
highest price since late May.
Gold futures extended their losses to a third straight session
today, as Federal Reserve Chairman Ben Bernanke's Congressional
testimony suggested additional stimulus measures aren't on the
horizon. The malleable metal suffered further losses as the euro
weakened, following German Chancellor Merkel's negative outlook on
the euro zone. As the dollar climbed higher, August-dated gold
pulled back $18.70, or 1.2%, to end at $1,570.80 an ounce.
Levels to watch in trading...
-
Dow Jones Industrial Average (DJI - 12,908.70)
- support at 11,500; resistance at 14,000
-
S&P 500 Index (SPX - 1,372.78)
- support at 1,100; resistance at 1,500
-
Nasdaq Composite (COMP - 2,942.60)
- support at 2,400; resistance at 3,400
Click the links for coverage on today's
notable annual highs
and
notable annual lows
.
At the end of every market day, the staff at Schaeffer's
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