The Dow Keeps Chugging Along To Another Record

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"The fact we didn't give up after yesterday's hoopla was impressive," said Schaeffer's Senior Technical Strategist Ryan Detrick, CMT, as the Dow Jones Industrial Average (DJI) continued to climb, setting new records for the second straight day. "Still, the Dow might be making new highs, but the S&P 500 Index (SPX) and Nasdaq (COMP) aren't there yet. So don't get too excited just yet."

Continue reading for more on today's market, including :

  • Schaeffer's Senior Options Strategist Tony Venosa, CMT, gives his nine reasons why Research In Motion Ltd ( BBRY ) looks primed for a long trade.
  • Schaeffer's Senior Trading Analyst Bryan Sapp on the impact today's ADP Employment Report had on the markets; plus, technical analysis on Coinstar ( CSTR ).
  • Our Weekly Contrarian: Can Facebook Inc. ( FB ) overcome the possible loss of teen users? Our analysis says the future is brighter than some say.
plus...
  • The markets keep reaching for the sky, surprisingly positive job numbers, and how short-term traders swarmed all over eBay ( EBAY ).

The Dow Jones Industrial Average (DJI) set another all-time intraday high of 14,320.65. Sparked by positive job-creation data, the Dow gained nearly 43 points, or 0.3%, to finish at 14,296.24. The 30-member Dow saw 22 companies advance, led by Bank of America ( BAC ), which climbed 3.2%. The eight decliners were paced by Microsoft (MSFT), which fell 0.9%.

The S&P 500 Index (SPX) climbed nearly 2 points, or 0.1%, to close at 1,541.46. The SPX also set another intraday 12-month high, and is now trading at levels not seen since October 2007. After a slow start, the Nasdaq Composite (COMP) fell almost 2 points, or less than 0.1%, to finish at 3,222.36.

The CBOE Market Volatility Index (VIX) gained just a hair of a point, or 0.0% to close at 13.53.

A Trader's Take :

"Today felt like the hangover from yesterday's new-Dow-high party," Detrick said. "Sure, volume was light, but at this point everyone is waiting for the monthly jobs data [the Labor Department's unemployment report] coming out on Friday."

CLOSING SUMMARY - INDICES

CLOSING SUMMARY - NYSE AND NASDAQ

3 Things to Know About Today's Market :

  • Payroll processor ADP this morning reported that private-sector jobs jumped by 198,000 in February, beating economists' estimates of 175,000 new jobs. (The Wall Street Journal)
  • The special board committee for Dell Inc. (DELL) appointed to review the tentative $24.4 billion buyout by a group that includes founder Michael Dell stressed today that it remains the best option for the company. Meanwhile, activist investor Carl Icahn scooped up 100 million DELL shares, amounting to a 6% stake. (The New York Times/CNBC)
  • Crude oil inventories jumped 3.8 million barrels in the week ending March 1, handily beating forecasts of 500,000 barrels. That forced crude prices down -- and the CEO of Exxon Mobil Corp. (XOM) predicted that his company's production would decline by 1% this year. (Fox Business/CBS Money Watch)

5 Stocks We Were Watching Today :

  1. eBay Inc ( EBAY ) saw a flurry of option activity , including trades from short-term investors looking to cash in by the end of the week.
  2. Short-term traders also targeted Research In Motion ( BBRY ), with bulls looking for a strong finish to this week.
  3. Online travel site TripAdvisor, Inc. (TRIP) jumped on the charts, and was immediately swarmed by bullish call traders.
  4. Qualcomm (QCOM) saw a lot of bullish activity as well, with traders looking for a decent jump by next month.
  5. All the turmoil at J.C. Penney Company (JCP) drew the attention of bearish put traders, looking for a big fall in the next month.

EARNINGS

For a look at today's options movers and commodities activity, head to page 2.

STOCKS - NOTABLE CALL ACTIVITY

STOCKS - NOTABLE PUT ACTIVITY

Commodities :

The previously mentioned inventories report sent oil down to an intraday low south of the $90 mark, although April crude futures finished with a loss of 39 cents, or 0.4%, at $90.43 per barrel.

Gold futures finished unchanged, with the April contract closing at $1,574.90 per ounce. The intraday trading range was a modest $18.

SCHAEFFER'S MARKET POSTURE

At the end of every market day, the staff at Schaeffer's Investment Research reviews the trading day in detail, covering major events and key market developments. Don't miss this critical, timely and insightful report. If you enjoyed today's edition of Market Recap, sign up here for free daily delivery straight to your inbox.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

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This article appears in: Investing , Options

Referenced Stocks: BAC , BBRY , CSTR , EBAY , FB

Schaeffer's Investment Research

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