"The Tuesday streak continues," summarized Schaeffer's Senior
Technical Strategist Ryan Detrick, CMT, of a day where the
Dow Jones Industrial Average (DJI)
broke out of an early funk to close solidly higher. "The Dow is now
up an incredible 19 straight Tuesdays. In fact, the Dow has gained
more than 1,400 points this year during Tuesday sessions alone. In
the whole scheme of things it might not mean much, but the reality
is we are in the midst of some amazing records."
Continue reading for more on today's market, including
Apple Inc.'s (
) Tim Cook testifies, Facebook (
) bulls get conservative, and DryShips (
) speculators turn out for earnings.
Dow Jones Industrial Average (DJI)
turned into negative territory this morning, putting its streak of
18 winning Tuesdays in jeopardy, but the blue-chip index turned
higher in late-morning trading, notching a 19th consecutive Tuesday
win, up 52.3 points, or 0.3%, at 15,387.58. In other record news,
the Dow hit yet another new all-time high of 15,434.50 during the
session. Eighteen of the 30 Dow components moved higher today, led
by Merck (MRK), which rallied 4.7%. Alcoa (AA) was unchanged today,
and Travelers Companies (TRV) brought up the rear, losing 2.2%.
Also scoring another record-setting intraday high was the
S&P 500 Index (SPX)
, which rallied to 1,674.93 this afternoon before settling up 2.9
points, or 0.2%, at 1,669.16. The
Nasdaq Composite (COMP)
enjoyed modest gains as well, gaining 5.7 points, or 0.2%, to close
at 3,502.12, after hitting a 12-year peak of 3,512.15 in afternoon
CBOE Market Volatility Index (VIX)
managed to rally as well, despite the gain in equities. The VIX
appreciated by 0.4 point, or 2.7%, settling at 13.37, just shy of
its 20-day moving average.
A Trader's Take
"It was a light news day, as everyone was gearing up for
[Federal Reserve Chairman Ben] Bernanke's speech to Congress
tomorrow. Still, Home Depot (HD) had some great earnings, sparking
strength in the retail group. One area to watch is the Russell 2000
(RUT), which is right up against the psychological 1,000 area.
Small-caps have done great recently, but this is one area to pay
very close attention to."
3 Things to Know About Today's Market
- St. Louis Federal Reserve President James Bullard lit a fire
under bullish traders today, following some
uncharacteristically dovish comments
. Specifically, he recommended a continuation of the central
bank's bond-buying practices, citing that it "is closest to
standard monetary policy, involves clear action and has been
- Apple Inc. (
) CEO Tim Cook appeared in Washington to dispute a Senate report
claiming the iPhone parent used loopholes to avoid paying taxes.
"We pay all the taxes we owe,"
Cook asserted, "every single dollar."
(Los Angeles Times)
- Jamie Dimon, chairman and CEO of JPMorgan Chase (JPM), will
keeping both of his titles
. The ballot item that would have stripped Dimon of the chairman
role received the backing of just 32.2% of shareholders. The
other 10 JPM directors were also reinstated.
(The New York Times)
5 Stocks We Were Watching Today
- Facebook Inc (
) traders used a bull put spread to place a
short-term bet on support
- LinkedIn (LNKD) scored a new "buy" rating and a
generous price target of $225
- Option bulls
swarmed DryShips Inc. (
ahead of the shipping concern's earnings report.
targeted First Solar (FSLR), even as the stock hit a new
- Call buyers expect a
modest move higher
in BP plc (BP) over the next few months.
For a look at today's options movers and commodities
activity, head to page 2.
Oil snapped its four-session winning streak on Tuesday, with
June-dated crude futures shedding 55 cents, or 0.6%, to end at
$96.16 per barrel in their final session before expiration.
Ahead of Fed Chairman Ben Bernanke's Congressional testimony, as
well as the latest Federal Open Market Committee (FOMC) meeting
minutes, stimulus-sensitive gold futures retreated on Tuesday. A
strengthening greenback also weighed on gold, with the June
contract giving up $6.50, or 0.5%, to end at $1,377.60 an