"After the European Central Bank announcement came and passed,
all eyes were on this morning's nonfarm payrolls report," noted
Schaeffer's Senior Equity Analyst Joe Bell, CMT. "While the number
didn't blow out expectations, the report showed a continuation of
the slow jobs growth that we have become accustomed to. The market
continued its momentum from yesterday, as small-cap stocks
displayed strong leadership for the second day in a row."
Meanwhile, both the
S&P 500 Index (SPX)
Dow Jones Industrial Average (DJI)
kept their streak of new highs alive, visiting uncharted territory
in intraday trading and settling at brand-new peaks.
Trading Topic of the Week
Continue reading for more on today's market, including
-- Trading Low-Priced Options:
DO trade stocks with a favorable sentiment
. At Schaeffer's, we use sentiment analysis to determine whether a
stock's current trend is likely to continue. To maximize returns,
we focus our efforts on outperforming stocks surrounded by
skepticism, and lagging equities that continue to attract bullish
Dow Jones Industrial Average (DJI - 16,924.28)
closed at its all-time intraday high, gaining 88.2 points, or 0.5%,
on the day. On a weekly basis, the index rallied 1.2%. American
Express Company (AXP) led the Dow's 21 advancers with a 2.3% gain;
Pfizer Inc. (PFE) slipped 1.1% to pace the nine decliners.
S&P 500 Index (SPX - 1,949.44)
also closed at its high-water mark of the day, moving up 9 points,
or 0.5%. Not to be left out, the
Nasdaq Composite (COMP - 4,321.40)
rose 25.2 points, or 0.6%. This week, the SPX rose 1.3% -- ending
the week in new-high territory -- while the COMP gained 1.9%.
CBOE Volatility Index (VIX - 10.73)
closed at its intraday low, hitting its lowest point since February
2007. On the day, the market's "fear gauge" dropped 1 point, or
8.1%, and lost 5.9% for the week.
A Trader's Take
"The Russell 2000 Index (RUT) once again showed relative
strength and finished the week on a very strong note," added Bell.
"With most major indexes continuing to make new all-time highs, the
small-caps still have a lot of catching up to do."
5 Items on Our Radar Today
- May's nonfarm payrolls report revealed that
217,000 jobs were created
in the U.S. last month, roughly in line with estimates. The
unemployment rate, meanwhile, stayed at 6.3%, versus expectations
for a slight increase. The labor market has now officially
recovered all 8.7 million jobs lost during the 2008 financial
crisis and subsequent recession.
(FOX Business )
- Sprint Corporation (S) and T-Mobile US Inc (TMUS) -- the
nation's third- and fourth-largest wireless carriers,
respectively -- are reportedly growing ever-closer to combining
forces. Merger speculation has surrounded the two names for some
time, but sources now say a
$32 billion deal
is growing closer to reality. Under a preliminary agreement, S
would technically acquire TMUS for roughly $40 per share in cash
- One of today's biggest market movers was
Hertz Global Holdings, Inc. (
, which declined on news that the company will have to sort
through three years' worth of accounting errors.
- Call options are becoming increasingly popular on
Facebook Inc (FB)
, as the stock continues to bounce from its April lows.
Zynga Inc (ZNGA)
-- which has dropped significantly during the last three months
-- was swatted with a price-target cut earlier today.
For a look at today's options movers and commodities
activity, head to page 2.
July crude futures enjoyed a modest boost from the U.S. nonfarm
payrolls report and subsequent hopes for increased energy demand.
By the close, black gold had tacked on 18 cents, or 0.2%, to
$102.66 per barrel. Week-over-week, oil edged down 0.05%.
August-dated gold futures were lower on the day, slipping 80
cents, or 0.1%, to $1,252.50 an ounce. The precious metal managed
to gain ground for the week, however, rising 0.5% from last