"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
A modest upside surprise in nonfarm payrolls, clarity from
across the pond, and more bullish speculation on Intel (
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 (
) and JPMorgan Chase (
) both rising 2.3%. Pacing the three underperformers was McDonald's
(MCD), which gave back 0.5%.
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%.
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
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
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."
- 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
5 Stocks We Were Watching Today
- Call buyers won't give up on underperforming
American International Group (AIG)
option bulls targeted a near-term move to the $50 mark..
- Bullish speculation continued on
Tesla Motors (TSLA)
, as call buyers scooped up weekly options..
could be small but mighty for contrarian investors.
- 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.
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%.
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