"After selling off sharply over the past several days, the
market finally rebounded a bit," summed up Schaeffer's Senior
Equity Analyst Joe Bell, CMT. "Stocks initially paused in response
to this morning's economic data, but rebounded in late-afternoon
trading to finish near their intraday highs." The
Dow Jones Industrial Average (DJI)
traded in positive territory the entire session, closing with a
gain of 101 points.
Continue reading for more on today's market, including
China saves the day -- along with consumer confidence -- and
bearish speculators swoop in ahead of Research In Motion (
Dow Jones Industrial Average (DJI - 14,760.31)
gapped 10 points higher out of the gate and never looked back,
continuing to trek through positive territory until closing up
100.8 points, or 0.7%. In late-afternoon action, the index peaked
at 14,812.03, just south of its 80-day moving average. Of the Dow's
30 members, 26 moved higher today, led by Bank of America (
), which rallied 3%. Pacing the four losers was UnitedHealth Group
), which surrendered 1.4%.
Also spending the entire day in the green was the
S&P 500 Index (SPX - 1,588.03)
, ultimately closing up 14.9 points, or nearly 1%. The
Nasdaq Composite (COMP - 3,347.89)
fought back from early sluggishness to end with a gain of 27.1
points, or 0.8%. Unlike its index peers, the COMP managed to muscle
back above its 80-day trendline.
On the flip side, the
CBOE Market Volatility Index (VIX - 18.47)
gapped down to 18.65 at the open and trended solidly lower
throughout the session. By the closing bell, the VIX had given back
1.6 points, or 8.2%. At its intraday low of 17.82, the index
slipped a notch below its 10-day trendline.
A Trader's Take
"The best thing about today's market? We stopped going down,"
quipped Bell. "This morning, the market was greeted with a very
good consumer confidence number -- its highest since January 2008
-- and better-than-expected housing data. By the close, most major
sectors were in the green."
3 Things to Know About Today's Market
- China was in focus again today, as the nation's central bank
tried to calm global market fears
. Specifically, the People's Bank of China confirmed it would
supply cash to those institutions in need, in order to "maintain
overall stability in the money market." These remarks allowed the
Shanghai Index to recover from steep intraday losses and close
just south of breakeven.
- Consumer confidence
rose to 81.4 this month
, the highest reading in five years and the third straight
monthly increase. This was a surprise to economists, who expected
a more modest increase, according to a Bloomberg survey.
- On the housing front, home prices
in April from the previous year, according to the
S&P/Case-Shiller index. This was the sharpest year-over-year
gain since March 2006, and edged past economists' expectations.
Elsewhere, the Commerce Department noted that
new home sales
rose 2.1% in May to a seasonally adjusted annual rate of 476,000,
which approached a five-year high. The median price for new homes
dropped 2.8% from the previous month, however, to $263,900.
(Bloomberg, Los Angeles Times)
5 Stocks We Were Watching Today
- With earnings looming later this week,
Research In Motion (
was targeted by put buyers betting against the stock.
- Short-term bearish speculators wagered on a hasty retreat in
Tesla Motors Inc (TSLA)
Hewlett-Packard Company (HPQ)
remains popular among the put-trading crowd.
was downgraded by Bernstein today (but the firm also boosted its
price target by $55).
- Call volume has swelled in
option pits during the last five days.
For a look at today's options movers and commodities
activity, head to page 2.
With the weekly inventory number due out tomorrow, crude futures
closed marginally higher following a choppy session. August-dated
futures gained 14 cents, or 0.1%, to settle at $95.32 per
Gold started higher out of the gate, but ended in the red
following upbeat economic data, which boosted the U.S. dollar. Gold
for August delivery closed off $2, or 0.1%, at $1,275.10 an ounce.
Yesterday, Goldman Sachs lowered its forecast for gold prices by
more than 17% to $1,050 an ounce by the end of 2014.