"We saw some nice follow-through today after yesterday's strong
session, which was a good sign," observed Schaeffer's Senior
Technical Strategist Ryan Detrick, CMT. "For the second day in a
row, banks had solid earnings, with Bank of America Corp (
) coming through this time with strong results. Also, I was
impressed with the Empire State manufacturing data, which came in
way better than expected. The horrible jobs number last week has
everyone worried about the economy, and rightfully so. Still, this
was a nice sign that the economy could be just fine." Meanwhile,
Dow Jones Industrial Average (DJI)
secured another triple-digit advance, while the S&P 500 Index
(SPX) tagged record intraday and closing highs.
Continue reading for more on today's market, including
Wholesale prices spiked in December, the Empire State
manufacturing index hit a notable high, and
Apple Inc. (
saw a surge in front-month call volume.
Dow Jones Industrial Average (DJI - 16,481.94)
spent another session in positive territory, and finished 108.1
points, or 0.7%, higher on the day. The Dow's 24 advancers were led
by JPMorgan Chase & Co. (
) -- which gained 3% -- while Merck & Co., Inc. (MRK) paced the
six laggards with a drop of 0.9%.
S&P 500 Index (SPX - 1,848.38)
tagged a record intraday peak of 1,850.84 around 11:00 a.m. ET, and
added 9.5 points, or 0.5%, for the session -- eking out an all-time
closing high. Meanwhile, the
Nasdaq Composite (COMP - 4,214.88)
reached another 13-year intraday peak of 4,218.79, and ended the
day with a gain of 31.9 points, or 0.8%.
CBOE Volatility Index (VIX - 12.28)
was parked south of breakeven for much of the session, but ended up
finishing flat with yesterday's close.
A Trader's Take
"The SPX hit new all-time highs, and while we all know the index
is very overbought, that doesn't mean it has to violently pull
back," Detrick said. "There are two ways a market can correct -- in
price and in time. Well, it sure looks like the market is
correcting in time so far in 2014, which again, is perfectly
5 Items on Our Radar Today
- The Fed's
revealed that the U.S. economy grew moderately between late
November and the end of December, with the majority of reporting
districts noting an uptick in hiring. According to the data, "The
economic outlook is positive in most districts, with some reports
citing expectations for 'more of the same' and some expecting a
pick-up in growth."
- The Labor Department said its
producer price index (PPI)
climbed by a seasonally adjusted 0.4% in December, marking the
largest monthly advance since June. Meanwhile, core PPI -- which
excludes food and energy costs -- rose 0.3%.
Empire State manufacturing index
arrived at 12.51 in January, compared to December's reading of
2.22. The latest reading denoted the fastest pace since May 2012,
and handily topped consensus estimates.
Netflix Inc. (NFLX)
received some lukewarm analyst attention this morning, despite
the security's longer-term uptrend.
- Front-month bulls eyed
Apple Inc. (
following news of the firm's settlement with the Federal Trade
For a look at today's options movers and commodities
activity, head to page 2.
Crude futures advanced again today, thanks to a sharp decline in
weekly oil supplies, as well as some promising manufacturing data.
The February contract added $1.58, or 1.7%, to end at $94.17 per
Conversely, gold futures headed south for a second day in a row,
as the same manufacturing data and a stronger greenback weighed on
the malleable metal. February-dated gold lopped off $7.10, or 0.6%,
to close at $1,238.30 an ounce.
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