"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
Continue reading for more on today's market, including
Payrolls expand -- but not by too much -- Alan Greenspan offers
some advice, and a QUALCOMM (
) 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 (
) and Walt Disney (
) led the charge, as each gained 2.7%. Pacing the four declining
names was AT&T (T), which shed 1% today.
S&P 500 Index (SPX)
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.
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.
- 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
$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.
5 Stocks We Were Watching Today
- JPMorgan Chase (JPM) was targeted by
out-of-the-money LEAPS buyers
-- who may have been scooping up puts to protect existing
- One aggressive QUALCOMM, Inc. (
) bull used long calls and short puts to
bet on a reversal of fortune
- TiVo Inc. (TIVO)
following an out-of-court resolution to its patent dispute with
Motorola Mobility and others.
- A Groupon (GRPN) call buyer
rolled his bullish bets
to a later-dated series.
- 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.
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
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%.