Dow Churns to Multi-Year High Despite Jobs News
"This morning's initial jobless claims failed to affect the
market," said Schaeffer's Senior Equities Analyst Joe Bell. "The
safety trade was once again today's theme, as consumer staples
outperformed most of the other sectors." The
Dow Jones Industrial Average (DJI)
backpedaled roughly 75 points in morning trading, but battled hard
to secure a daily victory.
Click through to see what else was on our radar today:
- 2 anecdotal sentiment studies show why you should be long-term bullish on the market.
- Calling all contrarians! 3 outperforming and underloved equities could be ready for more upside.
- Plus, check the latest option activity on General Motors Company ( GM ), Priceline.com Incorporated ( PCLN ), and Qualcomm, Inc. ( QCOM ).
The Dow Jones Industrial Average (DJI - 13,596.93) secured a win today, albeit a minor one. The blue-chip barometer was in the red for most of the session, drifting to an intraday bottom of 13,503 in the first half hour of trading. By the time the closing bell sounded, though, the Dow was up 19.0 points, or 0.1%, to land at another multi-year best. Of the Dow's 30 components, Kraft Foods Inc (NASDAQ:KFT) led the 17 winning issues with a 1.9% rise, while Alcoa Inc.'s ( AA ) 2.3% decline paced the 13 underperformers.
The S&P 500 Index (SPX - 1,460.26) cleared breakeven for a brief moment in late-trading, but ultimately shaved off a fraction of a point on the day. The Nasdaq Composite (COMP - 3,175.96) fared no better, wading in the red for the entire session, and giving up 6.7 points, or 0.2%, by the close.
The CBOE Market Volatility Index (VIX - 14.07) turned higher today, but didn't travel too far from where it started, adding two-tenths of a point, or 1.4%.
Today's highlight : When asked what the best thing about today's market was, Bell responded with a succinct observation: "It's over."
"It was another boring, relatively flay day. If that sounds familiar, it is. Once again, the market fought tooth and nail to make a minor move."
Turning to today's major market stories...
- With September expiration knocking on the door, call buyers are looking for a quick bounce from CSX Corporation ( CSX )
- Long calls were a popular play on Dollar Tree, Inc. (DLTR) today.
- Cloud computing firm Salesforce.com, inc. (CRM) and fashion accessories designer Coach, Inc. (COH) were tapped with analyst adjustments.
- Did recent lackluster manufacturing data spur an uptick in January-dated put buying on Caterpillar Inc. (CAT) ?
- Option Trends : Check out the latest derivatives news for three of Wall Street's big-name equities.
- Zillow Inc (Z) leapt to its highest price since going public in July 2011.
- A bearish options strategist constructed a long put spread on Norfolk Southern Corp. (NSC) .
- Despite reaching all-times highs, Seattle Genetics, Inc. (SGEN), Under Armour Inc (UA), and NetSuite Inc. (N) remain drenched in bearish sentiment .
For today's activity in commodities, options, and more, head to page 2.
Poorly received domestic and foreign manufacturing data kept crude futures near breakeven today, as the newly expired futures contract for October delivery inched lower by 11 cents, or 0.1%, to settle at $91.87 a barrel. Meanwhile, November-dated crude ticked higher by 12 cents, or 0.1%, to $92.69 a barrel.
Gold futures didn't move too much either, even though the U.S. dollar flexed some muscle today. December-dated gold dipped $1.50, or 0.1%, to end at $1,770.20 an ounce.
Levels to watch in trading...
Dow Jones Industrial Average (DJI - 13,596.93)
- support at 11,500; resistance at 14,000
S&P 500 Index (SPX - 1,460.26)
- support at 1,100; resistance at 1,500
- Nasdaq Composite (COMP - 3,175.96) - support at 2,400; resistance at 3,400
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.