Spurred Higher by Jobs Report, Dow Settles Above 15,000

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"Some of today's strength was us simply catching up with the rest of the world," opined Schaeffer's Senior Technical Strategist Ryan Detrick, CMT. "While the jobs data got the headlines, we can't forget that the rest of the world rallied big-time yesterday while we were closed." Against this backdrop, the Dow Jones Industrial Average (DJI) enjoyed a triple-digit gain and closed the week above the psychologically significant 15,000 level.

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

plus...
    A modest upside surprise in nonfarm payrolls, clarity from across the pond, and more bullish speculation on Intel ( INTC ).

For the first day in five, the Dow Jones Industrial Average (DJI - 15,135.84) closed north of the 15,000 level, as market watchers responded favorably to the monthly jobs numbers. The index closed just off its intraday peak, up 147.3 points, or almost 1%. During the holiday-shortened week, the Dow added 1.5%. Twenty-seven of the Dow's components settled higher today, with American Express ( AXP ) and JPMorgan Chase ( JPM ) both rising 2.3%. Pacing the three underperformers was McDonald's (MCD), which gave back 0.5%.

The S&P 500 Index (SPX - 1,631.89) also overtook short-term resistance, barreling back above the 1,625 mark and its 50-day moving average. By the close, the index had added 16.5 points, or 1%. The Nasdaq Composite (COMP - 3,479.38) was also strong, rallying 35.7 points, or 1%. For the week, the SPX and COMP gained a respective 1.6% and 2.2%.

The CBOE Market Volatility Index (VIX - 14.89) settled below the 15 mark for the first time since May 30, giving back 1.3 points, or 8.1% on the day. This week, the VIX surrendered 11.7%.

CLOSING SUMMARY - INDICES

CLOSING SUMMARY - NYSE AND NASDAQ

A Trader's Take :

"The jobs data was what we wanted to see -- stronger than expected, but not too strong," continued Detrick. "We've seen this pattern in a lot of the economic data the past two weeks, and we've had a nice rally. Too weak gets everyone concerned that the economy is going to tank -- too strong, and everyone fears the Fed is going to take their foot off the pedal. We all know the Fed is going to 'taper' eventually, so no mystery there. To me," he added, "I'd rather see the economy start to pick up and finally get to this 'tapering.' The market hates uncertainty, and it would be nice to simply get closer to the Fed taking away some of the stimulus."

3 Things to Know About Today's Market :

  • The U.S. labor force added 195,000 jobs last month , according to the Labor Department's nonfarm payrolls report, which topped economists' expectations. The unemployment rate, meanwhile, was unchanged from May, at 7.6%. (The New York Times)
  • With U.S. markets shuttered for holiday on Thursday, the Bank of England and the European Central Bank (ECB) offered a rare glimpse into future policy plans. Specifically, ECB President Mario Draghi noted that interest rates would hold firm or even shift lower "for an extended period of time." (CNNMoney)
  • Dell (DELL) shares lost ground today on reports that CEO and founder Michael Dell and Silver Lake Management LLC have collectively ruled against upping their $24.4 billion proposal to take the PC maker private. DELL shareholders are scheduled to rule on the buyout offer on July 18. (Bloomberg)

5 Stocks We Were Watching Today :

  1. Call buyers won't give up on underperforming Intel ( INTC ) .
  2. American International Group (AIG) option bulls targeted a near-term move to the $50 mark..
  3. Bullish speculation continued on Tesla Motors (TSLA) , as call buyers scooped up weekly options..
  4. Why RadioShack (RSH) could be small but mighty for contrarian investors.
  5. Standard & Poor's reduced its long-term rating on Nokia Corporation (NOK) by one notch.

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

STOCKS - NOTABLE CALL ACTIVITY

STOCKS - NOTABLE PUT ACTIVITY

Commodities :

Oil moved higher again today, as a better-than-expected payrolls report improved the outlook for energy demand, and continued unrest in Egypt lifted supply concerns. August-dated crude expanded by $1.98, or 2%, to end the session at $103.22 per barrel. For the week, black gold surged 6.9%.

Gold, on the other hand, suffered a sharp drop amid a rising dollar and solid jobs data. The August gold contract retreated $39.20, or 3.1%, to close at $1,212.70 an ounce. On a weekly basis, the malleable metal gave back almost 0.9%.

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: AA , AXP , CAKE , INTC , JPM

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