"There weren't a lot of major events to start the week, but that
doesn't mean the week will be dull," noted Schaeffer's Senior
Equity Analyst Joe Bell, CMT. "We are set to hear retail sales,
inflation numbers, jobless claims, and housing starts. And after a
strong start to the week, many participants will look toward this
data to see how much the economy has improved after the rough
winter." Shortly after the open today, the
Dow Jones Industrial Average (DJI)
notched a new all-time high, and continued higher into the close,
coming to rest on a triple-digit gain at a fresh closing peak.
Continue reading for more on today's market, including
Trading Topic of the Week
- With Tesla Motors Inc (
) in rebound mode, speculators can't seem to keep their hands off
soon-to-expire front-month options
- Upbeat fundamental news had
these three stocks
making significant headway on the charts.
- Intel Corporation (
) may have spent the day in the green, but
option bears refuse to let up
... Consolidation in the food industry, Charles Plosser's
thoughts on the education system, and skeptical bets on Bank of
America Corp (
-- Ways to Interpret Short Interest:
Consider the short-to-float ratio
. By checking out a stock's short-to-float ratio, you can quickly
gauge how many traders are betting on the shares to drop.
Dow Jones Industrial Average (DJI - 16,695.47)
hit new-high territory out of the gate this morning, but secured
its latest all-time peak of 16,704.84 shortly before the close. By
the time the bell sounded, the blue-chip index had added 112.1
points, or 0.7%. Two dozen of the Dow's components rose on the day,
led by General Electric Company (
) and Nike Inc (
), which each gained 1.6%. Pacing the six underperformers was The
Procter & Gamble Company (PG), which slipped 0.8%.
S&P 500 Index (SPX - 1,896.65)
got within a fraction of a point from its own all-time intraday
high, and settled on a gain of 18.2 points, or 1%, a new closing
Nasdaq Composite (COMP - 4,143.86)
outperformed its index peers, as technology stocks bounced
following last week's slump. At the close, the COMP was up 72
points, or 1.8%.
CBOE Volatility Index (VIX - 12.23)
hit an intraday low of 11.88 -- its first trip south of 12 since
mid-January -- and closed down 0.7 point, or 5.3%. Since last
Wednesday's intraday high of 14.49, the market's "fear gauge" has
A Trader's Take
"The big laggards of 2014 finally displayed some strength today,
and small-caps performed very well," added Bell. "The consumer
discretionary space took a leadership role ahead of the retail
sales report that is set to be released this week."
5 Items on Our Radar Today
- The latest bit of merger-and-acquisition news saw Hillshire
Brands Co (HSH) bidding $4.3 billion (or $6.6 billion including
debt) for Pinnacle Foods Inc (PF). The deal --
Hillshire's third in a year
-- will bring the Birds Eye, Wish-Bone, and Vlasic brands under
the Hillshire umbrella.
- Philadelphia Fed President Charles Plosser spoke at the
bank's Reinventing Older Communities conference. While he didn't
speak to tapering activity or monetary policy, he did express
concerns that the
U.S. educational system is not properly
to prepare today's youth for "STEM" jobs, or those in the fields
of science, technology, engineering, and math.
Bank of America Corp (
call sellers placed bets on short-term technical resistance.
- Another brokerage firm offered a vote of confidence for
Twitter Inc (TWTR)
- Bearish speculators scooped up
Canadian Solar Inc. (CSIQ)
puts ahead of the company's trip to the earnings confessional on
For a look at today's options movers and commodities
activity, head to page 2.
Oil futures bounced back today, retaking the $100 level amid
continued unknowns surrounding the Ukraine situation. By the close,
June-dated futures had tacked on 60 cents, or 0.6%, to $100.59 per
barrel. Natural gas futures, on the other hand, brought their
losing streak to four, as the June contract dropped 10 cents, or
2.1%, to $4.43 per million Btus.
Gold moved higher for the first session in five, on rumors that
India could look to loosen its current restrictions on gold
imports. The June contract gained $8.20, or 0.6%, to close the
session at $1,295.80 an ounce. Elsewhere, copper rallied to a
two-plus-month high, spurred north by China's announced market
reforms. By the close, the July contract had added 7 cents, or
2.2%, to $3.15 a pound.