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Dow Waffles Near Breakeven, But Closes at a Record High

By: Schaeffer's Investment Research
Posted: 7/15/2013 4:25:00 PM
Referenced Stocks: C;DELL;NOK;ORCL;TSLA

"Citigroup ( C ) announced some solid earnings, and this came on the heels of better-than-expected data out of China," said Schaeffer's Senior Technical Strategist Ryan Detrick, CMT. "Although it's still early in earnings season, the results so far are looking very strong. The usual concerns have been revenues and outlooks, and so far, so good. Sure, we are only in the first inning of a nine-inning game, but it does look like the bar was once again too low." For the majority of the session, the Dow Jones Industrial Average (DJI) was parked just north of breakeven before climbing higher toward the end of the day to settle at another all-time closing peak.

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The Dow Jones Industrial Average (DJI - 15,484.26) spent a large portion of the session hovering above breakeven before moving slightly higher by late afternoon. At the close, the Dow was up 20 points, or 0.1%, managing to end the day with a new record high. The blue-chip barometer's 12 advancers were led by Boeing's (BA) 3.7% gain, while Walt Disney (DIS) paced the 18 laggards with a loss of 1.6%.

The S&P 500 Index (SPX - 1,682.50) also reached a new all-time closing peak, adding 2.3 points, or 0.1%. The Nasdaq Composite (COMP - 3,607.49) rose to another 12-year intraday high of 3,609.59 before settling slightly off this peak with a gain of 7.4 points, or 0.2%.

The CBOE Market Volatility Index (VIX - 13.79) finished below the 14 level for second consecutive session, losing 0.1 point, or 0.4%.

CLOSING SUMMARY - INDICES

CLOSING SUMMARY - NYSE AND NASDAQ

A Trader's Take :

"What can you say, more new highs across the board," commented Detrick. "The S&P 500 is now up eight days in a row, and the PowerShares QQQ Trust (QQQ) is up a record 14 days in a row. Sure, we are very overbought in the near term, but leadership from small-caps and tech stocks is very healthy. Remember, early in the year the leadership came from places like utilities and healthcare. Nothing wrong with that, but healthy bull markets tend to see leadership from areas that are more aggressive. That is what we're seeing now."

3 Things to Know About Today's Market :

5 Stocks We Were Watching Today :

  1. Analysts at Pivotal Research downwardly revised their rating on social networking site Facebook (FB) .
  2. Bulls are betting on Barrick Gold (ABX) to climb higher following the release of its quarterly earnings report in August.
  3. News out of China prompted speculators to zero in on First Solar's (FSLR) July calls.
  4. AT&T (T) saw its price target trimmed at Evercore following the company's acquisition news.
  5. Pre-earnings call buyers rolled the dice on Cisco Systems (CSCO) , while the stock tagged yet another new multi-year high.

EARNINGS

For a look at today's options movers and commodities activity, head to page 2.

STOCKS - NOTABLE CALL ACTIVITY

STOCKS - NOTABLE PUT ACTIVITY

Commodities :

Crude oil futures muscled higher today, courtesy of some well-received economic data out of China . August-dated oil futures tacked on 37 cents, or 0.4%, to close at $106.32 per barrel.

Meanwhile, gold futures recovered from Friday's decline, marking a fifth daily gain in the past six sessions. The August-dated contract added $5.90, or 0.5%, to settle at $1,283.50 an ounce.

SCHAEFFER'S MARKET POSTURE