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Dow, S&P 500 Extend Weekly Winning Streak to Six
By: Schaeffer's Investment Research
"In a somewhat quiet day of action, the broad market indices
slowly churned higher, and by the end of the day, most sectors
registered some pretty nice gains," said Schaeffer's Senior Equity
Analyst Joe Bell, CMT. "There was a little economic data released
this morning, but it didn't seem to have too much of an effect on
the market. A day after Fed Chair nominee Janet Yellen's
confirmation hearing, it seems like the positive momentum isn't
quite ready to slow down." The
Dow Jones Industrial Average (DJI)
S&P 500 Index (SPX)
subsequently extended their weekly winning streaks and again found
their way to unprecedented heights.
Continue reading for more on today's market, including :
- Options are now available on Twitter Inc ( TWTR ) . Find out which short- and longer-term contracts caught speculators' attention today.
- A pair of newswire headlines pushed General Electric Company ( GE ) to new heights -- and attracted a crop of weekly option bulls.
- In case you missed it: Our founder and CEO, Bernie Schaeffer, examined how the Russell 2000 Index (RUT) behaves around century levels .
- Import and export prices declined in October, the Empire State
manufacturing index turned negative, and longer-term put players
pounced on US Airways Group Inc (NYSE:LCC).
The Dow Jones Industrial Average (DJI - 15,961.70) reached yet another record intraday peak of 15,962.98, and finished with a gain of 85.5 points, or 0.5% -- denoting an all-time closing high. For the week, the blue-chip index added 1.3%, its sixth straight weekly advance. Exxon Mobil Corporation ( XOM ) led the Dow's 25 advancers with a gain of 2.2%, while a 0.7% loss for McDonald's Corporation ( MCD ) paced the five decliners.
The S&P 500 Index (SPX - 1,798.18) also touched an all-time intraday high of 1,798.22, and ended the session up 7.6 points, or 0.4%, to claim its own record closing high. Meanwhile, the Nasdaq Composite (COMP - 3,985.97) climbed 13.2 points, or 0.3%, which marked a new 13-year peak. On a weekly basis, the indexes tacked on 1.6% and 1.7%, respectively.
Elsewhere, the CBOE Volatility Index (VIX - 12.19) tumbled out of the gate, but narrowed its daily loss to 0.2 point, or 1.5%, by the closing bell. The "fear barometer" dropped 5.5% on the week.
A Trader's Take :
"Markets finished the week higher for the sixth consecutive time, as the positive trend continues," Bell went on. "Although the momentum from the month of October has slowed in November, the trend has stayed in place, and technically, the market remains strong."
3 Things to Know About Today's Market :
- The Labor Department said import prices declined by a larger-than-expected 0.7% in October, due largely to lower fuel prices. Meanwhile, export prices fell by 0.5% last month. (MarketWatch)
- The New York Fed revealed that its Empire State manufacturing index arrived at negative 2.21 this month, compared to a reading of 1.52 in October. The latest figure -- which marked the first sub-zero reading since May -- fell short of economists' forecast for a rise to 5.00. (Reuters via CNBC)
- Berkshire Hathaway disclosed its now 40 million-share stake in Exxon Mobil Corporation ( XOM ), while also noting that it has further reduced its ConocoPhillips ( COP ) investment. Although the company did not specify who was behind the XOM deal, the sheer size points to Warren Buffett himself. (USA Today)
5 Stocks We Were Watching Today :
- Ahead of next week's turn in the earnings confessional, Pandora Media Inc (P) received a price-target hike at J.P. Morgan Securities.
- The latest Option Idea of the Week highlights why underloved Safeway Inc. (SWY) could be fodder for a bullish trade.
- As BlackBerry Ltd (BBRY) continues to struggle on the charts, the stock was slapped with a downgrade at Macquarie this morning.
- One near-term speculator extended his bullish position on Michael Kors Holdings Ltd (KORS) to allow for additional gains.
- US Airways Group Inc (NYSE:LCC) saw a notable surge in longer-term put volume today, with a particular focus on April 2014-dated options.
For a look at today's options movers and commodities activity, head to page 2.
Abundant oil supplies weighed on crude futures yet again, although the December contract managed to tack on 8 cents, or 0.1%, to close at $93.84 per barrel. For the week, however, crude shed 0.8% -- marking a sixth consecutive weekly loss, as well as the longest weekly losing streak in 15 years.
Meanwhile, gold futures edged higher again on easing tapering fears. December-dated gold added $1.10, or 0.1%, to finish at $1,287.40 per ounce. On a weekly basis, the precious metal advanced 0.2%.