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Dow Rallies 128 on Strong Earnings Data

By: Schaeffer's Investment Research
Posted: 10/16/2012 4:33:00 PM
Referenced Stocks: C;ETFC;GE;INTC;UNH

Thanks to some upbeat news on the earnings front, the Dow Jones Industrial Average (DJI) secured a triple-digit gain within the first hour of the session, and remained firmly planted above the 13,525 level throughout most of the day.

"You've got to love the fact we had another strong day today. In the end, I don't think there was one major reason for the buying, other than the fact that the bounce off of last week's lows is still in play," commented Schaeffer's Senior Technical Strategist Ryan Detrick. "With that said, strap on your seatbelt, as there are a lot more earnings coming up, and this could always add to the market's volatility."

Keep reading to see what else was on our radar today:

And now, a look at the numbers...

CLOSING SUMMARY - INDICES

CLOSING SUMMARY - NYSE AND NASDAQ

Dow Jones Industrial Average (DJI - 13,551.78) UNH INTC GE

The S&P 500 Index (SPX - 1,454.92) and Nasdaq Composite (COMP - 3,101.17) both headed north early in the session and notched solid wins by the time the dust settled. The SPX tacked on 15 points, or 1%, while the COMP added 37 points, or 1.2%.

The CBOE Market Volatility Index (VIX - 15.21) edged 0.1 point, or 0.3%, lower today, breaching its 20-day moving average for the first time in over a week.

Today's highlight : "Reading about all the Pandit drama was fun," said Ryan. "Was he forced out? Was it all his decision? Was it over money? Hey, whatever the reason, no one saw this coming, and the fact the stock was still up over a percent after the initial drop is yet another sign that the bulls are quickly taking back control."

Turning to today's major market stories...

For today's activity in commodities, options, and more, head to page 2.

Oil futures managed a minor win today, lifted by optimism over a potential Spanish bailout. November-dated oil added 24 cents, or 0.3%, to finish at a one-week best of $92.09 per barrel.

Gold futures also ended higher, as the U.S. dollar lost ground to its European counterpart. The December contract tacked on $8.70, or 0.5%, to settle at $1,746.30 per ounce.

Levels to watch in trading...

OUTPERFORMING AND UNDERPERFORMING SECTORS

STOCKS - MOVERS

STOCKS - EARNINGS

STOCKS - NOTABLE CALL ACTIVITY

STOCKS - NOTABLE PUT ACTIVITY

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.