"After a wild and volatile June, July started off on the right
foot," noted Schaeffer's Senior Technical Strategist Ryan Detrick,
CMT, of a day where the
Dow Jones Industrial Average (DJI)
advanced almost half a percent but fell short of the 15,000 level
at the closing bell. "The overall economic backdrop today was
positive, as manufacturing data out of Europe and the U.S. was
better than expected. Given that this is a holiday week, though, I
expect to see some muted movement over the next few days until we
get to Friday and the monthly employment data."
Continue reading for more on today's market, including
Manufacturing activity enters expansion mode, construction
spending improves, and Facebook (
) bears stay active.
Dow Jones Industrial Average (DJI - 14,974.96)
didn't manage to overtake the 15,000 level by the close (thanks to
a late-day round of selling), it did settle with a gain of 65.4
points, or 0.4%. Of the 30 components of the blue-chip index, 21
were higher on the day, with United Technologies (
) gaining 1.9% to take the top spot. Pacing the nine decliners was
), which dropped 1.4%.
S&P 500 Index (SPX - 1,614.96)
edged above its 20-day moving average in intraday trading, but
ultimately closed just a hair shy of this trendline, up 8.7 points,
or 0.5%. The
Nasdaq Composite (COMP - 3,434.49)
, meanwhile, posted a gain of 31.2 points, or 0.9%.
CBOE Market Volatility Index (VIX - 16.37)
gave back an additional 0.5 point, or 2.9%, to settle at its lowest
close since June 10.
A Trader's Take
"Although it was buried under the headlines, I was very
encouraged by Amgen (
) offering to buy Onyx Pharmaceuticals (ONXX) at nearly a 40%
premium," added Detrick. "This type of activity shows there is
confidence in current prices. We haven't seen a lot of
merger-and-acquisition activity, but when we do, the prices bigger
companies are willing to pay are very substantial."
3 Things to Know About Today's Market
- The Institute for Supply Management (ISM) reported its
manufacturing index rose
to 50.9 in June from 49.0 the previous month. The 50 threshold is
notable, as it defines the point between expansion and
Construction spending edged up
0.5% in May to a seasonally adjusted annual rate of $874.9
billion, the Commerce Department noted. The reading represented a
5.4% jump on a year-over-year basis, and now sits at its highest
point since October 2008.
- And overseas, the
Bank of Japan's "Tanken" survey
-- a measure of business confidence -- rose to 4 at the end of
June from negative 8 in March. This was the first positive
reading in the survey since September 2011.
5 Stocks We Were Watching Today
- Weekly options traders foresee a new all-time high for
over the next few trading sessions.
Tesla Motors (TSLA)
caught the attention of options players after rallying on the
heels of a price-target increase.
- Bearish traders scooped up back-month put options as
underperformed the broader market.
DISH Network (DISH)
continued its exploration of multi-year-high territory,
front-month call buyers descended.
- Up more than 42% in the past 52 weeks,
Cisco Systems (CSCO)
scored a price-target hike at Piper Jaffray.
For a look at today's options movers and commodities
activity, head to page 2.
Positive economic data at home and abroad helped lift crude
futures today, putting the commodity back on track after Friday's
decline. At the close, August-dated oil was up $1.43, or 1.5%, to
settle at $97.99 per barrel.
Gold prices also rose, bouncing back after suffering their
worst-ever quarterly loss on record. Gold for August delivery
stretched $32 higher today, adding 2.6% to close at $1,255.70 per
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