"Today's economic data was much better than yesterday's," noted
Schaeffer's Senior Technical Strategist Ryan Detrick, CMT. "Both
consumer confidence and leading indicators came in at five-year
highs, which was all it took for the bulls to once again push
stocks to new highs across the board." For its part, the
Dow Jones Industrial Average (DJI)
extended its trek into uncharted territory and closed with a solid
triple-digit gain. "There are lots of concerns out there," Detrick
continued, "but the reality is no one truly knows where this bull
market will peak, and trying to pick a top is a foolish game."
Continue reading for more on today's market, including
- Consumers are confident -- as is JPMorgan Chase (
) -- but long-term Ford Motor (
) traders see downside ahead.
Dow Jones Industrial Average (DJI)
, reversed Thursday's losses and then some, ending 121 points, or
0.8%, higher at 15,354.40. The index closed just shy of its
intraday peak of 15,357.40, which was also a new all-time high. On
a weekly basis, the Dow added 1.6%. JPMorgan Chase (
) paced the advancing majority today, with a gain of 2.6%, and 22
other Dow stocks also made their way into the green. Seven stocks
declined, with Pfizer (PFE) bringing up the rear, down 1%.
It was also a record-setting day for the
S&P 500 Index (SPX)
, which added 17 points, or just over 1%, to close at its new
all-time high of 1,667.47. The
Nasdaq Composite (COMP)
, meanwhile, hit a new 12-year high of 3,499.21 before settling at
3,498.97, up 33.7 points, or just shy of 1%. On a weekly basis, the
SPX gained 2.1% and the COMP advanced 1.8%.
CBOE Market Volatility Index (VIX)
couldn't hold its perch above 13, as it shed 0.6 point today, or
4.7%, to settle at 12.45, back south of its 10-day moving average.
This week, the VIX lost 1.1%.
A Trader's Take
"The big thing in today's market actually happened under the
surface, as the U.S. dollar broke out to new highs," Detrick said.
"There was a time when the S&P 500 Index (SPX) and dollar
trended inversely, but that has been reversed in a big way this
year. In fact, you could argue this is a sign things are getting
back to 'normal,' as historically speaking, a strong currency
usually meant a strong economy and stock market. What can you say
-- the bulls are in charge and the U.S. economy is looking better.
Things aren't perfect, but they sure aren't as bad as all those
Harvard economists were telling us during the Fiscal Cliff mess
late last year."
3 Things to Know About Today's Market
- Consumer confidence has surged this month, according to
preliminary findings of the Thomson Reuters/University of
Michigan consumer sentiment index, which
popped to 83.7
from 76.4 in April. The reading -- the highest since July 2007 --
easily exceeded economists' expectations.
- JPMorgan Chase (
) adjusted its outlook on the S&P 500 Index (SPX), projecting
year-end price target of 1,715
. The move represents an 8.5% jump from the firm's previous
target of 1,580.
- In order to side-step this weekend's encroachment of the debt
U.S. Treasury Department has earmarked $260
in additional cash. This and other measures will enable the
country to continue fulfilling its financial obligations on
schedule through Labor Day.
5 Stocks We Were Watching Today
Long-term bears pounced
on Ford Motor Company (
), even as the stock hit a new two-year high.
- Bank of America (BAC) caught the eye of
long-term call buyers
expecting continued upside.
- J.C. Penney Company (JCP) was a
favorite among call buyers
after its earnings report last night.
- AT&T Inc. (T) was
initiated with an "equal weight" rating
at Barclays today.
- Renren (RENN) hopefuls believe the stock is
due for a comeback
, and scooped up intermediate-term, in-the-money calls.
For a look at today's options movers and commodities
activity, head to page 2.
Crude futures closed higher today, helped along by
stronger-than-expected domestic economic data. June-dated oil added
86 cents, or 0.9%, to settle at $96.02 per barrel. For the week,
black gold edged down just 2 cents.
Gold, on the other hand, dropped for a seventh consecutive
session, impacted by a continued rise in the U.S. dollar. Gold for
June delivery fell $22.20, or 1.6%, to close at $1,364.70 an ounce.
The precious metal has given back $109 over its losing streak, and
shed 5% this week alone.
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