Markets Overcome Prior Weakness to Close the Week in the Black


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"It was all about jobs today, and we had a very nice bounce to end this week pretty much where we started," observed Schaeffer's Senior Equity Analyst Joe Bell, CMT, of a session where the Dow Jones Industrial Average (DJI) closed with a solid gain of 207 points, up 0.9% for the week. "Although there has been a significant increase in volatility recently, we certainly haven't seen the market move much in either direction."

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

    Payrolls expand -- but not by too much -- Alan Greenspan offers some advice, and a QUALCOMM ( QCOM ) bull gets creative.

Once again, the Dow Jones Industrial Average (DJI) closed near its high point of the day, gaining 207.5 points, or 1.4%, to settle at 15,248.12. The index also managed to end the day north of its 10-day moving average, for the first time since May 28. This week, the Dow added 0.9%. Today, 26 of the Dow's 30 components finished higher, as Boeing ( BA ) and Walt Disney ( DIS ) led the charge, as each gained 2.7%. Pacing the four declining names was AT&T (T), which shed 1% today.

Both the S&P 500 Index (SPX) and the Nasdaq Composite (COMP) muscled back atop their 10-day trendlines as well. The SPX rose 20.8 points, or 1.3%, to close at 1,643.38, a gain of 0.8% for the week. The COMP, meanwhile, jumped 45.2 points, or 1.3%, to 3,469.22, and edged up 0.4% on a weekly basis.

The CBOE Market Volatility Index (VIX) dipped south of the 15 level intraday, but closed at 15.14 after losing 1.5 points, or 9%. This week, the VIX went on a wild ride, ultimately closing off 7.1%.



3 Things to Know About Today's Market :

  • The nonfarm payrolls report for May came in slightly better than expected , as U.S. employers added 175,000 jobs during the month. The unemployment rate, meanwhile, crept up to 7.6%, as more Americans joined the workforce. Results were evidently deemed as not "good" enough to prompt any dramatic gestures from the Federal Reserve. (Reuters)
  • And speaking of dramatic gestures, former Federal Reserve Chairman Alan Greenspan opined that the current central bank leadership shouldn't be afraid to begin tapering its bond-buying efforts , even if the U.S. economy seems unprepared for it. "Gradual is adequate," Greenspan said, "but we've got to get moving." (Los Angeles Times)
  • Wal-Mart Stores (WMT) held its annual meeting, at which it announced a $15 billion share buyback program . Though forced to field tough questions about safety regulations and other matters, the world's largest retailer was not greeted by protestors, as many had expected. (CBS News)

5 Stocks We Were Watching Today :

  1. JPMorgan Chase (JPM) was targeted by out-of-the-money LEAPS buyers -- who may have been scooping up puts to protect existing profits.
  2. One aggressive QUALCOMM, Inc. ( QCOM ) bull used long calls and short puts to bet on a reversal of fortune .
  3. TiVo Inc. (TIVO) was downgraded following an out-of-court resolution to its patent dispute with Motorola Mobility and others.
  4. A Groupon (GRPN) call buyer rolled his bullish bets to a later-dated series.
  5. US Airways Group (LCC) saw a rare surge in put buying .


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



Commodities :

The well-received monthly jobs number helped buoy oil futures today. July-dated crude climbed $1.27, or 1.3%, to settle at $96.03 a barrel, the highest close since May 21. For the week, black gold surged 4.4%.

Gold, on the other hand, declined as investors shifted their attention back to equities and away from the safe-haven metal. The August-dated contract fell $32.80, or 2.3%, to close at $1,383 an ounce. On a weekly basis, gold lost $10, or 0.7%.


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