"After a big day on Tuesday, markets took a bit of a break
today," observed Schaeffer's Senior Technical Strategist Ryan
Detrick, CMT. "Overall economic data was rather weak, and Deere
& Company (
) had some very cautious things to say about the rest of the year.
Nonetheless, again the bad news was brushed aside" and the
Dow Jones Industrial Average (DJI)
finished higher, notching another new all-time peak along the way.
Continue reading for more on today's market, including
- The services sector takes over, Google (
) flips on the tunes, and Advanced Micro Devices (
) bears see rocky times ahead.
Another day, another new high for the
Dow Jones Industrial Average (DJI)
, which gained 60.4 points, or 0.4%, to close at 15,275.69 after
peaking at a fresh apex of 15,301.34 in midday trading. Of the 30
Dow components, 23 closed in the black today, led by financial
heavyweights American Express (
) and JPMorgan Chase (JPM), which gained 1.8% and 1.7%,
respectively. Bringing up the rear was Hewlett-Packard (HPQ), which
logged a 2.6% loss.
S&P 500 Index (SPX)
also traveled into uncharted territory, peaking at 1,661.49 before
closing up 8.4 points, or 0.5%, at 1,658.78. For its part, the
Nasdaq Composite (COMP)
lagged its index peers but tagged an intraday high of 3,475.48 -- a
level not visited in a dozen years -- and closed up 9 points, or
0.3%, at 3,471.62 .
Even while the market averages advanced, the
CBOE Market Volatility Index (VIX)
pressed higher as well, tacking on less than 0.1 point, or 0.3%, to
end the session at 12.81, just off its intraday nadir. While the
VIX did overcome its 10-day moving average (and peaked at 13.43) in
intraday trading, it closed just beneath this short-term
A Trader's Take
"Today's earnings reports showed what a dichotomy we're working
with," quipped Detrick. "On one hand, Deere was rather cautious,
but on the other hand, Macy's (M) earnings looked very strong.
We've been seeing this really all year now. Retail and consumer
discretionary stocks have done very well," he continued, "while
some of the manufacturing or metals and mining companies have done
very poorly. Just look at ISM services data versus ISM
manufacturing. Our economy has changed to one that is
services-based. There just aren't as many opportunities in the
manufacturing areas as there were just 10 years ago."
3 Things to Know About Today's Market
- The producer price index (PPI )
declined by a seasonally adjusted 0.7%
in April, according to the Labor Department. This was the
steepest drop since February 2010 and was a surprise for
economists, who had expected a less dramatic pullback. The core
reading -- which excludes food and energy from the equation --
edged up 0.1%.
- Homebuilders have
shown increased confidence
of late, according to the latest findings from the National
Association of Home Builders/Wells Fargo builder sentiment index.
This month, the index ticked up to 44, from 41 in April, marking
the first increase in 2013. Readings below 50, however, still
suggest negative sentiment.
- Confirming earlier rumors, Google Inc (
) announced All Access -- a
streaming music service
priced at $9.99 per month to compete with Spotify and Pandora
Media (P). The service will be available in app form for
smartphones and tablets, as well as via web browsers. Google
shares jumped to a new all-time high of $916.38 today and settled
up 3.3%, well north of the $900 mark at $915.89.
5 Stocks We Were Watching Today
- Put buyers bet that Advanced Micro Devices (
will drop 10%
between now and mid-July.
Bears weren't spooked
by Activision Blizzard's (ATVI) move to a new multi-year peak,
opting to scoop up back-month, out-of-the-money puts.
- Zynga Inc (ZNGA) moved higher on positive news,
spurring more attention
among call buyers.
- SodaStream International (SODA) was handed a
second consecutive vote of confidence
, as Roth Capital boosted its price target.
Put buyers descended
upon Live Nation Entertainment (LYV) in droves, focusing on the
June 13 strike.
For a look at today's options movers and commodities
activity, head to page 2.
Crude bucked its four-day downtrend, albeit barely, to edge into
the black by the close. June-dated crude futures added 9 cents, or
0.1%, to end the session at $94.30 per barrel. Oil had moved lower
earlier in the session against the backdrop of a rising U.S. dollar
and disappointing economic reports from across the Atlantic.
Gold futures were again lower on the day, dipping below the
$1,400-an-ounce threshold to end at its lowest point since April
19. Rising equities and a stronger greenback spurred a drop of
$28.30, or 2%, in June-dated gold, which closed at $1,396.20 an