"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
Continue reading for more on today's market, including
Consumer credit grows, economists offer their latest "tapering"
prediction, and short-term bulls take aim at First Solar (
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 (
) leading the charge, up 2.1%. At the back of the pack was Intel (
), 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%.
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.
A Trader's Take
"The [Nasdaq Composite] lagged for much of the day," Bell added,
"after Intel (
) 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
- 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.
- Alcoa (AA) is under the spotlight today, as the aluminum
producer (and Dow component) will
unofficially usher in second-quarter earnings
after tonight's close. Analysts are expecting per-share results
of 6 cents, a figure that has been adjusted lower in recent weeks
5 Stocks We Were Watching Today
- Analysts at Barclays upwardly revised their price target for
- Bullish speculators bet on
First Solar (
to trek higher by week's end.
call buyers were eyeing the $425 mark, despite today's price
- Short-term traders reaffirmed their bullish stance on
by purchasing weekly calls.
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.
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.
All Rights Reserved. Unauthorized reproduction of any SIR publication is strictly prohibited.