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Dow Retakes 15,000 as Stocks Move Higher at Week's End
8/23/2013 4:19:00 PM
By: Schaeffer's Investment Research
"Overall, the market was relatively mixed today, with most
sectors showing very modest gains," observed Schaeffer's Senior
Equity Analyst Joe Bell, CMT. "There was very little economic data
out, but new home sales did disappoint this morning, which
definitely weighed on the homebuilding sector. We also had a few
retailers report earnings, with mixed results." Against this
Dow Jones Industrial Average (DJI)
stayed in positive territory, and retook its perch above the 15,000
After a brief trek below the breakeven line this morning, the Dow Jones Industrial Average (DJI - 15,010.51) turned on its heels and marched convincingly higher, closing slightly below its intraday peak of 15,025.56. By the time the closing bell sounded, the blue-chip index had gained 46.7 points, or 0.3%, to retake the 15,000 mark. Microsoft ( MSFT ) popped 7.3% higher to pace the 18 advancers, while Cisco Systems ( CSCO ) paced the 10 laggards, losing 0.6% on the day. Both Bank of America ( BAC ) and General Electric (GE) were unchanged. This week, the Dow lost almost 0.5%.
The S&P 500 Index (SPX - 1,663.50) also headed higher following an early morning hiccup, driving 6.5 points, or 0.4%, north by the end of the day, finishing just shy of its 10-day moving average. And on the heels of yesterday afternoon's trading freeze, the Nasdaq Composite (COMP - 3,657.79) continued higher, adding 19.1 points, or 0.5%. On a weekly basis, the SPX gained 0.5%, while the COMP surged 1.5%.
The CBOE Market Volatility Index (VIX - 13.98) subsequently continued lower, giving back 0.8 point, or 5.3%, to close beneath its 10-day moving average after seven sessions above this trendline. The market's fear barometer shed 2.7% on the week.
A Trader's Take :
"Some of the big news on the day was the announcement that Microsoft ( MSFT ) CEO Steve Ballmer will retire within a year," added Bell. "The news actually sent shares of the stock significantly higher, and the tech sector paved the way north for the broad market."
3 Things to Know About Today's Market :
5 Stocks We Were Watching Today :
For a look at today's options movers and commodities activity, head to page 2.
Crude oil futures advanced, on chatter that worse-than-expected home sales data will delay any tapering action by the Federal Reserve. By the close, October-dated futures were up $1.39, or 1.3%, to settle at $106.42 per barrel. Comparing front-month contracts on a week-over-week basis, black gold slipped 1% from last Friday's close.
Elsewhere, gold futures continued to march up the charts, hitting their highest point since early June. December-dated gold added $25 on the day, or 1.8%, to settle at $1,395.80 an ounce. For the week, the precious metal gained 1.8% as well.