Resilient Dow Extends Record-Setting Streak

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Even though the Dow Jones Industrial Average (DJI) found its way to yet another new record high, "There wasn't too much to talk about today, as earnings reports were pretty light and there isn't too much economic data coming out this week," noted Schaeffer's Senior Equity Analyst Joe Bell, CMT. "The Dow maintained its strength above the 15,000 level, as most intraday selling was met with participants buying the dip."

Continue reading for more on today's market, including :

plus...
  • Rumors of a Yahoo!/Hulu courtship, suspiciously rosy Chinese trade data, and another major move for volatile retail name J.C. Penney ( JCP ).

The Dow Jones Industrial Average (DJI) spent the first hour of the session in the red, but bounced back to hit a new all-time high of 15,106.81 in the final minutes of trading. The Dow settled on a gain of 48.9 points, or 0.3%, at 15,105.12 -- breezing past the previous day's record-best close. UnitedHealth ( UNH ) paced the 21 advancing blue chips with a 3.3% jump, while McDonald's ( MCD ) led the nine laggards with a 1.3% loss.

The S&P 500 Index (SPX) kept pace with the Dow, hitting a new intraday peak of 1,632.78 before settling at an all-time closing high of 1,632.69 -- up 6.7 points, or 0.4%. Also on the upswing was the Nasdaq Composite (COMP) , which tacked on 16.6 points, or 0.5%, to finish squarely at its session high of 3,413.27. This marked yet another new 12-year peak for the COMP.

The CBOE Market Volatility Index (VIX) sagged, meanwhile, ending the day down 1.3% at 12.66.

CLOSING SUMMARY - INDICES

CLOSING SUMMARY - NYSE AND NASDAQ

A Trader's Take :

"The strong momentum and uptrend just keeps chugging along," remarked Bell. "The broad markets actually traded lower early in the day, so the resilience and late-day strength were pretty impressive."

3 Things to Know About Today's Market :

  • Yahoo! ( YHOO ) CEO Marissa Mayer is eyeing a potential Hulu acquisition , according to reports. Sources close to the matter say YHOO is "in the process" of bidding on Hulu after Mayer held an "extensive getting-to-know-you" meeting with company execs. At this point, however, the discussions are said to be in the preliminary phase. (All Things D)
  • Chinese trade data was better than expected, with export activity rising 14.7% in April while imports surged 16.8%. Both readings exceeded economists' estimates, but Bank of America noted the growth numbers should be highly scrutinized, as they might be falsely inflated. (Bloomberg)
  • Freddie Mac reported its second-largest profit in company history during the first quarter. Growing refinance activity -- along with a jump in home prices -- contributed to the government-backed mortgage firm's bottom line. (Reuters)

5 Stocks We Were Watching Today :

  1. Intel Corporation (INTC) continued to attract the attention of weekly call buyers .
  2. J.C. Penney ( JCP ) was swarmed by front-month call and put players after providing a not-completely-dismal sales update .
  3. Google Inc (GOOG) bears wagered on a short-term pullback from record highs.
  4. Research In Motion Ltd (BBRY) saw its price target upped by $3 at Macquarie.
  5. Barrick Gold (ABX) enjoyed a big bounce, which triggered a heavy dose of short-term call volume on the commodity stock.

EARNINGS

For a look at today's options movers and commodities activity, head to page 2.

STOCKS - NOTABLE CALL ACTIVITY

STOCKS - NOTABLE PUT ACTIVITY

Commodities :

Crude futures bounced today, ending at a five-week high as traders cheered a raft of positive data. Commodities climbed across the board following signs of strong demand from China , while a smaller-than-forecast rise in U.S. crude inventories cemented the bullish mood. Oil for June delivery added $1, or 1.1%, to end the day at $96.62 per barrel.

Gold prices also rallied, as a softer U.S. dollar helped the precious metal recover from Tuesday's pullback. June-dated gold gained $24.90, or 1.7%, to end the day at $1,473.70 per ounce.

SCHAEFFER'S MARKET POSTURE



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

All Rights Reserved. Unauthorized reproduction of any SIR publication is strictly prohibited.


This article appears in: Investing , Options

Referenced Stocks: BAC , JCP , MCD , UNH , YHOO

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