"Today capped off a great start to the earnings season," noted
Schaeffer's Senior Equity Analyst Joe, Bell, CMT. "It was a mixed
day of price action, but financials got a nice boost, as Wells
) and JPMorgan Chase (
) both reported solid earnings this morning." In a lightly traded
Dow Jones Industrial Average (DJI)
traded on both sides of the breakeven mark and got within a
chip-shot of the 15,500 level before eventually settling
fractionally higher on the day.
Continue reading for more on today's market, including
Consumer confidence slips, JPMorgan Chase (
) profits spike, and Boeing (BA) option pits swell with
Dow Jones Industrial Average (DJI - 15,464.30)
began today's session with gains, spent most of the afternoon in
negative territory, and fought back as the close approached to end
virtually flat. When the bell sounded, the Dow was up 3.4 points,
or 0.02%. This was enough to secure a new closing high for the
blue-chip index, which finished the week 2.2% higher. Of the Dow's
30 members, 16 settled higher on the day, led by Bank of America
(BAC), which closed with a 2% gain. Alcoa (AA), Wal-Mart (WMT), and
Coca-Cola (KO) were unchanged today, and Boeing (BA) brought up the
rear, losing 4.7%.
S&P 500 Index (SPX - 1,680.19)
also logged another new all-time closing high, thanks to a gain of
5.2 points, or 0.3%. The
Nasdaq Composite (COMP - 3,600.08)
advanced to another 12-year peak and closed at its intraday high,
gaining 21.8 points, or 0.6%. This week, the SPX rose nearly 3%,
while the COMP tacked on 3.5%.
CBOE Market Volatility Index (VIX - 13.84)
finished south of the 14 mark for the first time since late May,
suffering a drop of 0.2 point, or 1.2%. This week, the VIX logged a
drop of 7.1%.
A Trader's Take
"Often, trends last longer and go much further than most would
believe," added Bell. "That's exactly what we've been experiencing,
with all of the broad-market sectors trading at or near historical
(or all-time) highs. Next week should be interesting, as a slew of
companies are set to report second-quarter earnings."
3 Things to Know About Today's Market
- The Labor Department said its
producer price index (PPI)
rose by a seasonally adjusted 0.8% in June, fueled by a surge in
gasoline prices. Meanwhile, core prices climbed by 0.2%.
Economists polled by Reuters had expected increases of 0.5% and
- The preliminary July reading of the Thomson
Reuters/University of Michigan
consumer sentiment index
arrived at 83.9 -- down from June's final reading of 84.1.
Economists, on average, were expecting the index to dip to 83.6.
(The Wall Street Journal)
- Dow component JPMorgan Chase (
) is in focus today, after revealing a 31% increase in
ahead of the open. The financial firm reported a profit of $6.50
billion, or $1.60 per share, up from $4.96 billion, or $1.21 per
share, in the year-ago period. Meanwhile, revenue rose by 13% to
5 Stocks We Were Watching Today
- Option bulls expect continued upside in
over the next couple of months.
spiraled lower, call sellers rushed its option pits to place
earned a price-target boost from Barclays this morning.
Tesla Motors (TSLA)
is beginning to see more bullish attention from the options
Option Idea of the Week
: How to take advantage of the upward momentum in
For a look at today's options movers and commodities
activity, head to page 2.
Crude oil futures bounced back into the black today, as
commodity investors remained positive about global energy demand.
August-dated oil futures were up $1.04, or 1%, to close at $105.95
per barrel. On a weekly basis, black gold added 2.6%.
Gold futures, however, settled for a modest daily loss after
Thursday's surge higher, shedding $2.30, or 0.2%, to close at
$1,277.60 an ounce. On a weekly basis, however, the yellow metal
gained 5.4%. This was the precious metal's largest weekly advance
since October 2011, according to FactSet.
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