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Dow Roars Out of Gate and Finishes Above 14,000
2/19/2013 4:20:00 PM
By: Schaeffer's Investment Research
"Strong European returns sparked by a big improvement in the
German investor confidence index got things started off in the
right direction early," said Schaeffer's Senior Technical
Strategist Ryan Detrick, CMT, on today's market, which saw the
Dow Jones Industrial Average
close above 14,000 for the first time since early last week and hit
a new five-year high in the process. "It was a relatively quiet day
on the news front though ... but that couldn't stop the new highs
across the board, specifically new all-time highs in small and
Buoyed by encouraging news out of Europe and potential news of another big merger, the Dow Jones Industrial Average got off to a rip-roaring start and never quit -- finishing up nearly 54 points, or 0.4%, to close at 14,035.67. The day saw the Dow touch a new five-year high and close above 14,000 for the first time since Feb. 12. Cisco Systems ( CSCO ) led the 22 advancers on the 30-member Dow, jumping 2.2%. Alcoa ( AA ) had the biggest drop of the eight decliners, losing 2.8%.
The S&P 500 Index also had a strong day, gaining 11 points, or 0.7%, to close at its intraday high of 1,530.94, also a five-year peak. The Nasdaq Composite finished at 3,213.59, up nearly 22 points, or 0.7%.
The CBOE Volatility Index (VIX) finished at 12.31, down about 0.2 point, or 1.2%.
A Trader's Take :
"Last week we saw Warren Buffett buy H.J. Heinz Company (HNZ), and this week we were greeted by a potential merger of Office Depot (ODP) and OfficeMax (OMX)," Detrick said. "This is yet another sign that merger and acquisition activity is alive and well and that the market continues to think there are tremendous values out there -- even though we are at multi-year highs."
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.
A weaker U.S. dollar helped crude oil futures rebound from last Friday's drop, with the soon-to-expire March contract adding 80 cents, or 0.8%, to close at $96.66 per barrel.
April-dated gold dropped $5.30, or 0.3%, to $1,604.20 an ounce (another new six-month low). This continued a downward trend for gold, with investors turning their buying power toward equities.
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