Market Recovery Continues in Quiet Pre-Earnings Trading

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"The upward momentum clearly continued through from late last week," noted Schaeffer's Senior Equity Analyst Joe Bell, CMT. "It appeared that market participants got back to the office today after what was a long holiday weekend for many." Continuing its trek north of the 15,000 level, the Dow Jones Industrial Average (DJI) got within 280 points of its all-time intraday high at its morning peak today.

Continue reading for more on today's market, including :

plus...
    Consumer credit grows, economists offer their latest "tapering" prediction, and short-term bulls take aim at First Solar ( FSLR ).

The Dow Jones Industrial Average (DJI - 15,224.69) continued its upward trek today, rallying 88.9 points, or 0.6%. At its highest point, the Dow stretched to 15,262.72, less than 300 points shy of its all-time peak. Twenty-eight of the Dow's 30 names were higher on the day, with UnitedHealth Group ( UNH ) leading the charge, up 2.1%. At the back of the pack was Intel ( INTC ), down 3.6% today.

Also in positive territory was the S&P 500 Index (SPX - 1,640.46) , which gained 8.6 points, or 0.5%. The Nasdaq Composite (COMP - 3,484.83) was the day's laggard, thanks in large part to a foundering Intel. The tech-rich index closed up 5.5 points, or 0.2%.

The CBOE Market Volatility Index (VIX - 14.78) spent some time in positive territory this morning -- touching a high of 15.27 -- but closed off 0.7%, losing 0.1 point.

CLOSING SUMMARY - INDICES

CLOSING SUMMARY - NYSE AND NASDAQ

A Trader's Take :

"The [Nasdaq Composite] lagged for much of the day," Bell added, "after Intel ( INTC ) struggled mightily following a downgrade . Financial stocks, however, really showed strength as the trading day winded down, with many of them finishing near their highs. Of course, tonight marks the beginning of the second-quarter earnings season, with Alcoa (AA) set to report."

3 Things to Know About Today's Market :

  • The Federal Reserve reported that consumer credit rose in May by $19.6 billion to $2.8 trillion, topping analysts' expectations with the biggest monthly increase since May 2012. Non-revolving credit (such as student loans) grew by $13.0 billion, while revolving credit (credit cards) surged $6.6 billion. (Chicago Tribune)
  • Economists now collectively expect the Fed to begin slowing its bond-buying activity in November, according to the latest CNBC Fed Survey, conducted after last Friday's jobs report. The previous survey (from roughly two weeks ago) indicated December as the average forecast for tapering to begin. (CNBC)
  • Alcoa (AA) is under the spotlight today, as the aluminum producer (and Dow component) will unofficially usher in second-quarter earnings season after tonight's close. Analysts are expecting per-share results of 6 cents, a figure that has been adjusted lower in recent weeks and months. (MarketWatch)

5 Stocks We Were Watching Today :

  1. Analysts at Barclays upwardly revised their price target for Visa (V) .
  2. Bullish speculators bet on First Solar ( FSLR ) to trek higher by week's end.
  3. Apple (AAPL) call buyers were eyeing the $425 mark, despite today's price drop.
  4. Short-term traders reaffirmed their bullish stance on Facebook (FB) by purchasing weekly calls.
  5. Research In Motion (BBRY) will hold its annual shareholder meeting tomorrow, where the equity's technical woes will likely take center stage.

For a look at today's options movers and commodities activity, head to page 2.

STOCKS - NOTABLE CALL ACTIVITY

STOCKS - NOTABLE PUT ACTIVITY

Commodities :

Oil lost some ground today after turning in solid gains last week. August-dated crude edged down just 8 cents, or 0.1%, to settle at $103.14 per barrel.

Meanwhile, gold futures muscled higher against a backdrop that included a relatively upbeat forecast on gold prices from Deutsche Bank and a miners' strike. The August-dated contract added $22.20, or 1.8%, to close at $1,234.90 an ounce.

SCHAEFFER'S MARKET POSTURE



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.

All Rights Reserved. Unauthorized reproduction of any SIR publication is strictly prohibited.


This article appears in: Investing , Options

Referenced Stocks: ABX , EMC , FSLR , INTC , UNH

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