"Some optimism that a U.S.-lead strike on Syria is on hold
brought more buyers out today," noted Schaeffer's Senior Technical
Strategist Ryan Detrick, CMT. "It was nice to see that the big
reversal on Friday found some buyers. The news and headlines are
scary, but we continue to see leadership from small-caps." This
easing anxiety, combined with the release of upbeat data out of
China, propelled the
Dow Jones Industrial Average (DJI)
140.6 points higher for the day.
Continue reading for more on today's market, including
Strong Chinese export data spurred U.S. markets higher,
consumer credit surged in July, and Groupon (
) touched a fresh 12-month peak.
Dow Jones Industrial Average (DJI - 15,063.12)
climbed higher right out of the gate, and touched an intraday high
of 15,088.41 during the afternoon hours. By the end of the session,
the blue-chip index was up 140.6 points, or 0.9% -- closing above
its 20-day moving average for the first time since Aug. 5 and north
of 15,000 for the first time in more than two weeks. Caterpillar (
) led the Dow's 29 advancers with a gain of 2.6%, while Verizon
) -- the sole laggard -- shed 0.9%.
S&P 500 Index (SPX - 1,671.71)
also charged northward early on in the session, and finished 16.5
points, or 1%, higher. Meanwhile, the
Nasdaq Composite (COMP - 3,706.18)
surged 46.2 points, or 1.3%.
CBOE Market Volatility Index (VIX - 15.63)
spent a portion of the morning in positive territory, but reversed
course to tag an intraday low of 15.22 later in the day. By the
closing bell, the "fear barometer" was 0.2 point, or 1.4%,
A Trader's Take
"Last Friday morning is looking like the big flush we were
hoping for," continued Detrick. "Fear spiked, and then the buyers
stepped up and continued to push things higher today. Overall, the
U.S. economy continues to improve, and even China is reporting
strong economic data -- sparking buying in the economically
sensitive materials group. Lastly, housing has done very poorly
over the past few months, but the sector had a huge day today. If
housing can find its footing, it could be a key sign that this
September rally may continue to surprise and move higher."
3 Things to Know About Today's Market
climbed higher than expected last month, according to the Customs
Administration. Thanks to improving demand in major markets, the
region's exports rose by 7.2% on a year-over-year basis, while
imports rose 7%, yielding a trade surplus of $28.6 billion.
Economists, on average, were expecting a 6% gain in exports and
an 11.3% rise in imports, for a trade surplus of just $20
- The Federal Reserve said
increased by $10.4 billion in July to a seasonally adjusted $2.85
trillion, which marked a yearly growth rate of 4.4%. Breaking the
numbers down further, revolving credit -- which is mostly credit
card loans -- dropped to an annual rate of 2.6%, marking its
second consecutive monthly drop. Meanwhile, nonrevolving credit,
which is largely comprised of school and auto loans, rose to an
annual rate of 7.4%.
- John Williams was the latest policymaker to offer up his
opinion on the central bank's
plans to taper its bond-buying program
. After a speech delivered at the National Association for
Business Economics, the San Francisco Fed president told
reporters that while he is "still 100% on board with Chairman
(Ben) Bernanke's timeline," he has not yet decided whether to
support an $85-billion reduction in monthly bond purchases at
next week's Federal Open Market Committee (FOMC) meeting. "I am
going to go into that meeting with an open mind and listen to my
colleagues and discuss," he said.
5 Stocks We Were Watching Today
- FBN Securities boosted its price target for
, ahead of tomorrow's much-discussed media event.
- Front-month call buyers converged on
amid this morning's M&A news, which triggered a new annual
was slapped with a downgrade and a price-target cut at Danske
Bank, following last week's deal with Microsoft (MSFT).
- An analyst-induced drop for
Tesla Motors (TSLA)
lured call sellers and put buyers to the trading table, who
focused on weekly options.
- Chatter regarding a buyout bid for
may have prompted one strategist to initiate a short strangle on
the mobile phone maker.
For a look at today's options movers and commodities
activity, head to page 2.
Crude futures backed away from Friday's 28-month high, as ebbing
fears regarding a potential military strike against Syria pushed
prices lower. By the closing bell, October-dated oil dropped $1.01,
or 0.9%, to finish at $109.52 per barrel.
Meanwhile, gold futures remained nearly flat, as investors
speculated over when the Fed will start scaling back its
bond-buying program. The malleable metal's December contract added
a modest 20 cents to end at $1,386.70 an ounce.
All Rights Reserved. Unauthorized reproduction of any SIR publication is strictly prohibited.