"Quite simply, today was all about jobs," summarized Schaeffer's
Senior Equity Analyst Joe Bell, CMT. "From the time this data was
released, the market took off and never looked back." Indeed, the
Dow Jones Industrial Average (DJI)
spiked higher out of this gate and maintained a triple-digit gain
for the majority of the session, ultimately closing shy of its new
all-time peak (and the 15,000 level).
Continue reading for more on today's market, including
- Stocks make new records, unemployment dips, and Research In
) has some good news.
The bulls held the reins into the weekend, sending the
Dow Jones Industrial Average (DJI)
up 142 points, or 1%, to 14,973.96. In intraday trading, the Dow
crossed the 15,000 level for the first time on record, and tagged a
new all-time high of 15,009.59. Of the Dow's 30 members, 25 were
higher on the day, paced by
, which added 3.2%. Bringing up the rear were JPMorgan Chase (JPM)
and Pfizer (PFE), both down 1.1%. For the week, the Dow added
S&P 500 Index (SPX)
also overcame a millennium level, topping 1,600 on its way to a new
all-time high of 1,618.46. At the close, the SPX was up 16.8
points, or 1.1%, at 1,614.42. Not to be outdone, the
Nasdaq Composite (COMP)
rallied to another 12-year high of 3,388.12 before closing up 38
points, or 1.1%, at 3,378.63. On a weekly basis, the SPX and COMP
were up 2% and 3%, respectively.
CBOE Market Volatility Index (VIX)
moved further into the red, dropping 0.7 point, or 5.5%, to end the
day at 12.85, its first close below 13 since April 12. The VIX lost
5.4% on the week.
A Trader's Take
"The April nonfarm payrolls number surpassed expectations, and
there were also positive revisions to March and February," noted
Bell. "The market surged to new highs, and the Dow crossed the
round-number 15,000 mark for the first time ever. Although the
index wasn't able to finish above this threshold, it was very
encouraging to see almost all of the major sectors participate in
3 Things to Know About Today's Market
- The monthly employment report was
better than expected
, as nonfarm payrolls increased 165,000 in April, while data for
the previous two months was revised higher. Meanwhile, the
unemployment rate edged to a four-year low of 7.5%. Economists
were expecting a slower rise of 145,000 jobs, with unemployment
remaining unchanged at 7.6%.
- The ISM's non-manufacturing (or services) index dipped to
. Economists had expected a slighter pullback, to 54.
- American International Group (AIG) noted that first-quarter
profit dropped 31%, but per-share earnings of $1.34 still
handily topped expectations
(The Wall Street Journal)
5 Stocks We Were Watching Today
- Ahead of earnings later this month, Cisco Systems (CSCO)
saw increased attention
from call buyers.
- Call volume
in Ford Motor Company (F), as bullish traders reacted to positive
- AT&T Inc. (T) option players
targeted short-term losses
in the shares.
- Research In Motion (
) received some
good news about its BlackBerry Q10
Put buying was notable
in Freeport-McMoran Copper & Gold (FCX) today, as bears
predicted a sharp pullback in the next seven weeks.
For a look at today's options movers and commodities
activity, head to page 2.
Hopes for energy demand were on the rise again today, thanks to
the better-than-expected report on U.S. jobs. June crude futures
gained $1.62, or 1.7%, to settle at $95.61 per barrel, oil's
highest close since April 2. For the week, black gold rose
Gold, on the other hand, edged lower as investors turned their
attention toward stocks. June-dated gold dropped $3.40, or 0.2%, to
$1,464.20 an ounce, finishing the week up 0.7%.