Markets End Solidly Higher, Unspoiled by Fake AP Tweet

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"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 :

plus...
  • The market uptrend resumes, the White House is unharmed, and the pre-earnings pessimism shaping up on Ford Motor ( F ).

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 ( DD ), which gained 4.1% following its earnings report. Bringing up the rear was UnitedHealth Group (UNH), which shed 1.2%.

The S&P 500 Index (SPX) and the 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.

The 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.

CLOSING SUMMARY - INDICES

CLOSING SUMMARY - NYSE AND NASDAQ

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 was hacked, 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 president's wellbeing. (USA Today)
  • 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. (CNBC)
  • Manufacturing data from both China and Germany -- the two largest nations in terms of export activity -- disappointed 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. (Reuters)

5 Stocks We Were Watching Today :

  1. Call buyers targeted Starbucks (SBUX) ahead of its earnings release.
  2. Bullish AT&T Inc. (T) traders took a slightly longer-term approach with their pre-earnings bets.
  3. Bank of America (BAC) earned an upgrade from Morgan Stanley this morning, likely surprising the recent crowd of put traders.
  4. Ford Motor ( F ) has seen increased bearish speculation as earnings near.
  5. Pessimistic traders targeted significant long-term downside in United States Steel Corporation (X).

EARNINGS

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

STOCKS - NOTABLE CALL ACTIVITY

STOCKS - NOTABLE PUT ACTIVITY

Commodities :

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.

SCHAEFFER'S MARKET POSTURE

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.



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.

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This article appears in: Investing , Options

Referenced Stocks: CAT , DD , F , MMM , PG

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