Dow Up 103 Points, COMP Adds 1%; Wall Street Remains Optimistic in Earnings Deluge

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"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...

CLOSING SUMMARY - INDICES

CLOSING SUMMARY - NYSE AND NASDAQ

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

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.



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.

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This article appears in: Investing , Options

Referenced Stocks: BAC , DIS , GOOG , INTC , RCL

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