"We're in a bull market -- it's just that simple," quipped
Schaeffer's Senior Technical Strategist Ryan Detrick, CMT, of a day
that saw the
Dow Jones Industrial Average (DJI)
rebound from Wednesday's sell-off to post a triple-digit gain.
"Just as quickly as the market fell off a cliff yesterday,
prompting the world to worry about the 'Sell in May and go away'
mantra, the bulls swooped in to defend their turf."
Continue reading for more on today's market, including
- Senior Trading Analyst Bryan Sapp has a
word of caution
for the bears.
- Is Lowe's Companies (
ready for a breakout
? Senior Options Strategist Tony Venosa, CMT, has nine reasons to
support the bullish case.
- Our Weekly Contrarian: Is Caterpillar Inc. (
a good choice
for long-term bulls?
- The S&P 500 tags a new high, the jobless-claims number
sets a multi-year low, and Citigroup (
) options players take a long-term approach.
Yesterday's losses were nearly forgotten today, as the
Dow Jones Industrial Average (DJI)
gained 131 points, or 0.9%, to close at 14,831.58, just shy of its
intraday peak. Gains were across the board, as 27 of the Dow's 30
members moved higher. Cisco Systems (
) took top honors, gaining 1.7%, while Coca-Cola (
) and UnitedHealth Group (UNH) dropped 0.6% and 0.4%, respectively,
as the Dow's only two decliners. AT&T (T) was unchanged on the
Though eluded by the 1,600 level, the
S&P 500 Index (SPX)
did manage to hit another new all-time high of 1,598.60. At the
close, the SPX was at 1,597.59, up 14.9 points, or 0.9%. Tech
stocks resumed their leadership role, with the
Nasdaq Composite (COMP)
adding 41.5 points, or 1.3%, to 3,340.62. Once again, the index
tagged a fresh 12-year high on an intraday basis, rising to
CBOE Market Volatility Index (VIX)
gave back much of Wednesday's gains, falling 6.2%, or 0.9 point, to
settle at 13.59. The move brought the index back south of its
10-day moving average.
A Trader's Take
""General Motors (GM) and Facebook (FB) both had solid
earnings," Detrick said, "and the European Central Bank (ECB)
didn't rock the boat too much with its interest-rate decision. All
in all, though, it was just another new record-setting day for the
SPX. Elsewhere," he continued, "housing continues to impress.
Overall, earnings season has been disappointing on the revenue and
guidance front, but housing is one area that has bucked that
3 Things to Know About Today's Market
- The number of Americans seeking first-time unemployment
dropped 18,000 last week
to a seasonally adjusted 324,000, the lowest reading since
January 2008. The news was a nice surprise for economists, who
had expected the figure to edge higher to 345,000.
(Los Angeles Times)
- The European Central Bank (ECB)
lowered its benchmark interest rate
by a quarter-point to a record low of 0.5%. This was the first
interest-rate cut since July 2013, and the fourth on the books
since Mario Draghi became the bank's president in November 2011.
(The New York Times)
- Intel Corporation (INTC)
selected its new CEO
from within, tapping current chief operating officer Brian
Krzanich to fill the role. Krazanich -- a 31-year veteran of
Intel -- will officially assume the reins from Paul Otellini on
5 Stocks We Were Watching Today
- A patient Citigroup (
) bull executed an out-of-the-money
long call spread
in the January 2015 series.
- Tesla Motors (TSLA) put sellers wagered on
at the $45 level.
- A bullish General Electric (GE) options speculator
utilized back-month options
to simulate a stock position.
- Optimism -- highlighted by
escalating call demand
-- has been building on OpenTable (OPEN) ahead of earnings.
- Yelp Inc (YELP) enjoyed a slew of
bullish brokerage notes
following its earnings report yesterday.
For a look at today's options movers and commodities
activity, head to page 2.
Oil futures bounced back today, as the ECB rate cut and the
better-than-expected jobless claims report helped raise the
prospect of energy demand. June-dated crude gained $2.96 on the
day, or 3.3%, to settle at $93.99 per barrel.
The ECB decision was a boon for gold futures as well. June-dated
gold surged $21.40, or 1.5%, to close at $1,467.60 an ounce and
recoup the lion's share of Wednesday's losses.
All Rights Reserved. Unauthorized reproduction of any SIR publication is strictly prohibited.