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 :

plus...
    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%.

CLOSING SUMMARY - INDICES

CLOSING SUMMARY - NYSE AND NASDAQ

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 .

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 :

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%.

SCHAEFFER'S MARKET POSTURE



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.

All Rights Reserved. Unauthorized reproduction of any SIR publication is strictly prohibited.


This article appears in: Investing , Options

Referenced Stocks: AAPL , BA , CRM , QCOM , VMED

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