"The U.S. markets got a nice lift from Europe after there was
further speculation about a rate cut from the European Central
Bank," said Schaeffer's Senior Equity Analyst Joe Bell of a day
that saw the
Dow Jones Industrial Average (DJI)
enjoy a triple-digit boost. "This speculation," he added, "together
with a steady dose of positive earnings news, sent most sectors
notably higher on the day."
Continue reading for more on today's market, including
- The market uptrend resumes, the White House is unharmed, and
the pre-earnings pessimism shaping up on Ford Motor (
For the 15th consecutive Tuesday, the
Dow Jones Industrial Average (DJI)
turned in a win. Aside from the midday (and momentary) plunge
spurred by a fake AP tweet reporting an attack on the White House,
the index was in positive territory for the day, closing up 152
points, or 1.1%, at 14,719.46. The move was enough to bring the Dow
back above its 10-day moving average after four consecutive closes
below this trendline. Of the 30 Dow components, two dozen ended in
the black, led by DuPont (
), which gained 4.1% following its earnings report. Bringing up the
rear was UnitedHealth Group (UNH), which shed 1.2%.
S&P 500 Index (SPX)
Nasdaq Composite (COMP)
also powered back north of their respective 10-day moving averages.
The SPX added 1%, or 16.3 points, to end the day at 1,578.78, while
the COMP moved up 1.1%, or 35.8 points, closing at 3,269.33.
CBOE Market Volatility Index (VIX)
kept on drifting lower, spiraling down 6.3%, or 0.9 point, to
settle near its intraday low at 13.48.
A Trader's Take
"Financials and technology stocks really led the way today"
noted Bell. "There were several better-than-expected earnings
reports to digest, but Netflix (NFLX) definitely took the
headlines, jumping more than 24% after its positive surprise."
3 Things to Know About Today's Market
- The AP's Twitter account
resulting in a false report of an explosion at the White House
and an injured President Obama. Stocks immediately plunged, but
recovered just as quickly when the AP announced the tweet was
false, and White House Press Secretary Jay Carney confirmed the
- New home sales grew by
1.5% last month
to a seasonally adjusted annual rate of 417,000. This was just
south of economists' expectations, as compiled by Reuters. On a
year-over-year basis, sales increased 18.5% in March.
- Manufacturing data from both China and Germany -- the two
largest nations in terms of export activity --
this month. Activity within Chinese factories suffered amid
shrinking demand for exports, while business activity in Germany
retracted for the first time in five months.
5 Stocks We Were Watching Today
targeted Starbucks (SBUX) ahead of its earnings release.
- Bullish AT&T Inc. (T) traders took a slightly
with their pre-earnings bets.
- Bank of America (BAC)
earned an upgrade
from Morgan Stanley this morning, likely surprising the recent
crowd of put traders.
- Ford Motor (
) has seen
increased bearish speculation
as earnings near.
- Pessimistic traders targeted
significant long-term downside
in United States Steel Corporation (X).
For a look at today's options movers and commodities
activity, head to page 2.
Crude futures were little changed today, as traders weighed
strength in stocks against an expected supply build in tomorrow's
weekly inventory report. Oil for June delivery pulled back just 1
cent, or 0.01%, to settle at $89.18 per barrel.
Gold futures slumped, pressured by a bounce in the U.S. dollar
and concerns over a potential slowdown in demand from China.
June-dated gold surrendered $12.40, or 0.9%, to end the day at
$1,408.80 per ounce.
At the end of every market day, the staff at Schaeffer's
Investment Research reviews the trading day in detail, covering
major events and key market developments. Don't miss this
critical, timely and insightful report. If you enjoyed today's
edition of Market Recap,
sign up here
for free daily delivery straight to your inbox.
All Rights Reserved. Unauthorized reproduction of any SIR publication is strictly prohibited.