"The market's slump is over," observed Schaeffer's Senior
Technical Strategist Ryan Detrick, CMT. "After five straight down
days for the
Dow Jones Industrial Average (DJI)
S&P 500 Index (SPX)
, the bulls came back swinging today. Sparking the buying was the
stronger-than-expected jobs data. In the end, the SPX's weekly
winning streak ended at eight weeks, but it was a very minor loss.
All in all, early December typically doesn't do much, as it is the
last two weeks that really move higher. So far, this year could be
fitting that template pretty nicely."
Continue reading for more on today's market, including
The U.S. added more jobs than expected in November, consumer
sentiment hit a multi-month high, and LinkedIn Corp (
) received some bullish analyst attention.
Dow Jones Industrial Average (DJI - 16,020.20)
spiked at the opening bell and kept trekking north, ending the
session 198.7 points, or 1.3%, higher -- and reclaiming the 16,000
level. However, the index dropped 0.4% for the week. All 30 blue
chips advanced, with Intel Corporation's (
) 2.3% win leading the way.
S&P 500 Index (SPX - 1,805.09)
charted a similar path to the Dow, and added 20.1 points, or 1.1%,
on the day. Meanwhile, the
Nasdaq Composite (COMP - 4,062.52)
finished the session up 29.4 points, or 0.7%, after tagging a fresh
13-year intraday high. On a weekly basis, the SPX was fractionally
lower, while the COMP edged roughly 0.1% higher.
CBOE Volatility Index (VIX - 13.79)
faltered out of the gate, and lost 1.3 points, or 8.6%, for the
day. However, the "fear gauge" closed 0.7% higher for the week.
A Trader's Take
"This is where things get complicated," said Detrick. "Everyone
seems to think that stronger data is bad because it means the Fed
will taper, and this of course will bring with it a huge drop in
stocks. Personally, I'm not in that camp. The last time I saw
everyone so certain of something was a year ago, when the fiscal
cliff was going to wreak havoc on 2013. Well, we see how that
turned out. Could the masses once again be worrying themselves for
no reason? To me, I'd rather start to see some tapering and let the
economy stand on its own footing."
3 Things to Know About Today's Market
- The Labor Department said the U.S.
created 203,000 new jobs in November
, which easily exceeded consensus estimates. Meanwhile, the
unemployment rate dropped to 7.0% from 7.3%, marking its lowest
level since November 2008.
- In an interview with CNBC, Philadelphia Fed President Charles
Plosser said now may be the time to start
scaling back the central bank's asset-buying
, particularly in light of today's jobs report. "It would be wise
if we began to get rid of this program," he commented. "I don't
think it's doing very much good for us. It has a lot of
unintended consequences and risk for the economy down the road."
- The preliminary December reading of the Thomson
Reuters/University of Michigan
consumer sentiment index
arrived at 82.5 -- up from a reading of 75.1 in November, and
denoting the index's highest point since July. Economists, on
average, were expecting a smaller increase.
5 Stocks We Were Watching Today
LinkedIn Corp (
scored an upgrade and a price-target hike ahead of the opening
bell this morning.
- The latest edition of
Option Idea of the Week
Chipotle Mexican Grill, Inc. (
could be poised for extended gains.
Tesla Motors Inc (
speculator utilized December options to construct a call spread
on the popular auto concern.
- Front-month option bulls targeted
Groupon Inc (GRPN)
, and wagered on the stock to hit double-digit territory
General Motors Company (GM)
received an upbeat brokerage note, but that didn't keep bearish
bettors from buying near-term puts.
For a look at today's options movers and commodities
activity, head to page 2.
Crude futures edged higher today, as encouraging economic data
strengthened energy demand projections yet again. By the time the
dust settled, the January contract added 27 cents, or 0.3%, to end
at $97.65 per barrel. For the week, oil gained 5.3% -- the best
weekly advance since early July.
Meanwhile, gold futures were pressured lower by this morning's
reports, with February-dated gold shaving off $2.90, or 0.2%, to
finish at $1,229.00 per ounce. On a weekly basis, the precious
metal lost 1.7%.