"Markets were up just slightly for the day, as participants
digested the ADP employment number, which came in below what many
were forecasting," noted Schaeffer's Trading Analyst Peter Bryans.
S&P 500 Index (SPX)
managed to make a new intraday high, although it was almost
entirely unnoticed. The European Central Bank meeting tomorrow will
be big, and then the nonfarm payrolls number and unemployment rate
on Friday will round off the economic calendar for the week." While
Dow Jones Industrial Average (DJI)
spent some time on both sides of the flat line, it resolved to the
upside, posting a modest gain.
Continue reading for more on today's market, including
Trading Topic of the Week
- Elon Musk made headlines today for
two distinct reasons
, and Tesla Motors Inc (
) enthusiasts were all ears.
- Two Apple Inc. (
) device suppliers saw unusual option activity, as the
Worldwide Developers Conference
- Pre-earnings predictions for
three names reporting
... The Beige Book reveals growth, private-sector employment
disappoints, and Groupon Inc (
) call sellers see resistance ahead.
-- Trading Low-Priced Options:
DO buy higher-delta options
. The closer an option's delta is to 1.00 (for a call, or negative
1.00 for a put), the likelier it is that the option will retain
some intrinsic value at expiration. This offers you some
"insurance" against the possibility of a total loss.
Dow Jones Industrial Average (DJI - 16,737.53)
traded lower for the early portion of the day, before heading into
the green ahead of the noon hour. By the close, the blue-chip index
had tacked on 15.2 points, or 0.1%. Travelers Companies Inc (
) led the Dow's 16 advancers with a 1.4% advance; General Electric
) was the worst for wear, shedding 0.9%.
S&P 500 Index (SPX - 1,927.88)
tagged a new all-time intraday high of 1,928.63 before closing up
3.6 points, or 0.2%, to end at a new closing peak as well. The
Nasdaq Composite (COMP - 4,251.64)
outperformed its index peers, rising 17.6 points, or 0.4%.
CBOE Volatility Index (VIX - 12.08)
added 0.2 point, or 1.8%, to close north of the 12 level for the
first time since May 22. On a weekly basis, the market's "fear
barometer" has added 6%.
5 Items on Our Radar Today
- The Federal Reserve's Beige Book -- which tracks regional
business conditions in all 12 Fed districts --
revealed expansion across the board
. Specifically, the growth pace was either "moderate" or "modest"
in the regions, with the employment picture improving while the
real estate picture remained "mixed."
- The Institute for Supply Management (ISM) said its services
rose to a nine-month high
of 56.3 in May, surpassing economists' estimates. Readings above
50 are indicative of expansion, and this was the index's 53rd
consecutive month above this key threshold.
(Reuters, via FOX Business)
- ADP reported that
179,000 jobs were added in the private sector
last month, falling short of estimates. Economists were expecting
the addition of 215,000 new jobs. Small businesses did the most
hiring during the month, adding 82,000 employees, versus 61,000
for medium businesses and 37,000 for large firms.
- Call writers are betting on a longer-term ceiling of
Groupon Inc (
Under Armour Inc (UA)
earned an upgrade today, on the heels of a recent move
Oil futures inched down a fraction, despite this week's
inventories report revealing a larger-than-expected decline in
crude supplies. The July-dated contract slipped 2 cents to settle
at $102.64 per barrel.
August gold was little changed as well, as investors looked
forward to tomorrow's European Central Bank meeting and Friday's
nonfarm payrolls results. By the close, the contract was off 20
cents at $1,244.30 an ounce.