The economic and earnings calendars were bare at home, leaving
traders to focus on overseas developments and remarks from Federal
Reserve officials. Despite the slow news day, the
Dow Jones Industrial Average (DJI)
S&P 500 Index (SPX)
pressed further into new-high territory, tagging new peaks on both
an intraday and closing basis.
Trading Topic of the Week
Continue reading for more on today's market, including
-- Tips for Short-Term Trading:
Target stocks poised for a big move
. To reap big returns with a short-term trade, you need to single
out stocks that make dramatic moves on a regular basis. Historical
volatility and Bollinger Bands can offer important clues.
Dow Jones Industrial Average (DJI - 16,943.10)
notched a new intraday high of 16,970.17 around midday, and ended
the session at a new closing peak, up 18.8 points, or 0.1%. The
Walt Disney Company (
), United Technologies Corporation (UTX), and General Electric
Company (GE) were the Dow's top performers, each adding 1% to pace
the 14 advancing names. Intel Corporation (INTC) lost 0.9% to bring
up the rear.
In similar fashion to its blue-chip counterpart, the
S&P 500 Index (SPX - 1,951.27)
edged 1.8 points higher, adding 0.1%, after reaching an intraday
high-water mark of 1,955.55. The
Nasdaq Composite (COMP - 4,336.24)
was the day's outperformer, rising 14.8 points, or 0.3%.
CBOE Volatility Index (VIX - 11.15)
also rose, edging up 0.4 point, or 3.9%, to muscle back above the
5 Items on Our Radar Today
- M&A developments were prevalent on the newswires ahead of
today's open. First, Tyson Foods, Inc. (TSN)
inked an offer
to acquire the sought-after Hillshire Brands Co (HSH) for $63 per
share, or $7.8 billion in cash, excluding debt. Elsewhere, Merck
& Co., Inc. (MRK)
is buying out
Idenix Pharmaceuticals Inc (IDIX) for $3.85 billion, as it looks
toward a more effective treatment for hepatitis C.
(Chicago Tribune; Reuters)
- Boston Federal Reserve President Eric Rosengren
weighed in on monetary policy
today, suggesting the central bank should not lift short-term
interest rates until the U.S. economy is "within one year" of the
Fed's two major goals (full employment and an inflation rate of
2%). "Full employment," in Rosengren's opinion, is an
unemployment rate of 5.25%.
- Is the
CBOE Volatility Index's (VIX)
move to new seven-year lows a sign of something significant?
Schaeffer's contributor Adam Warner investigates.
- Days ahead of its earnings report on Thursday morning,
Lululemon Athletica inc. (
suffered a price-target cut.
The Clorox Co (CLX)
saw an unusual spike in call volume today, as speculators wagered
on short-term strength.
For a look at today's options movers and commodities
activity, head to page 2.
Heightened expectations for energy demand drove oil futures
solidly higher today. July crude futures settled up $1.75, or 1.7%,
at $104.41 per barrel, the highest close for a most-active contract
since early March.
Gold futures advanced slightly on Monday, staying within their
recent trading range. By the close, August-dated futures had added
$1.40, or 0.1%, to $1,253.90 an ounce, the highest closing price
since May 29.