More Multi-Year Highs for the Dow, SPX as Summertime Rally Continues

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The Dow Jones Industrial Average (DJI) drifted below breakeven before lunchtime, but battled its way back into the black in the last minutes of trading. With that, the blue-chip barometer secured a respectable return for the week. "After yesterday's breakout to new highs, it makes a lot of sense that we'd take somewhat of a breather here," said Schaeffer's Senior Equities Analyst Joe Bell.

Click through to see what else was on our radar today:

And now, a look at the numbers...

CLOSING SUMMARY - INDICES

CLOSING SUMMARY - NYSE AND NASDAQ

The Dow Jones Industrial Average (DJI - 13,306.64) was rather flat all session long, but found itself up 14.6 points, or 0.1%, by the closing bell. The Dow posted its best daily settlement since December 2007. Half of the 30 components slipped into negative territory, with Kraft Foods Inc's ( KFT ) 5.5% loss pacing the laggards. On the other hand, the 15 outperformers were led higher by Bank of America's ( BAC ) 5.4% gain. During the holiday-shortened week, the Dow enjoyed a 1.6% rise.

Adding 5.8 points, or 0.4%, the S&P 500 Index (SPX - 1,437.92) prolonged its stay in the black today and closed at a fresh four-year high. Plus, the SPX marked its best daily close since January 2008. For the week, the broad-market index climbed 2.2%.

The Nasdaq Composite (COMP - 3,136.42) enjoyed another multi-year high run, touching 3,139.61 in intraday action -- its loftiest price since mid-November 2000. And after the dust cleared, the tech-rich barometer eked out a fractional win. The COMP turned in the best weekly performance of its peers, rallying 2.3%.

The CBOE Market Volatility Index (VIX - 14.38) continued its recent downtrend, slipping 1.2 points, or 7.8%, and landing at its lowest point since Aug. 21. The market's fear gauge buckled 17.7% for the week.

Today's highlight : "In the face of worse-than-expected jobs data, the market held onto its recent gains and small caps once again took a leadership role ," noted Bell. "With continued skepticism, the market's surge to new highs is all the more impressive. There was also news from China of a new infrastructure stimulus plan, which definitely boosted the demand for coal and materials stocks."

Turning to today's major market stories...

For today's activity in commodities, options, and more, head to page 2.

After a choppy session, oil futures ended slightly higher today. Following the government's latest payrolls report, traders were torn between disappointment over the sluggish recovery and optimism over the prospect of additional quantitative easing. October-dated crude closed on a gain of 89 cents, or 0.9%, at $96.42 per barrel -- nearly flat with last Friday's close at $96.47.

Elsewhere, gold futures notched an unequivocal win. In the wake of Europe's latest stimulus announcement, Beijing unveiled plans for a sizable infrastructure investment -- and traders are now betting on the Federal Reserve to adopt a similarly accommodative tone at next week's meeting. For the day, December-dated gold rose $34.90, or 2.1%, to end at a six-month high of $1,740.50 per ounce. On a weekly basis, gold rallied 3.1%.

Levels to watch in trading...

  • Dow Jones Industrial Average (DJI - 13,306.64) - support at 11,500; resistance at 14,000
  • S&P 500 Index (SPX - 1,437.92) - support at 1,100; resistance at 1,500
  • Nasdaq Composite (COMP - 3,136.42) - support at 2,400; resistance at 3,400

OUTPERFORMING AND UNDERPERFORMING SECTORS

STOCKS - MOVERS

STOCKS - EARNINGS

STOCKS - NOTABLE CALL ACTIVITY

STOCKS - NOTABLE PUT ACTIVITY

SCHAEFFER'S MARKET POSTURE

At the end of every market day, the staff at Schaeffer's Investment Research reviews the trading day in detail, covering major events and key market developments. Don't miss this critical, timely and insightful report. If you enjoyed today's edition of Market Recap, sign up here for free daily delivery straight to your inbox.



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This article appears in: Investing , Options

Referenced Stocks: AKS , BAC , KFT , QIHU , WYNN

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