Dow Jumps 114 to Move Back Above 15,000

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"Overall, the market seems to be maintaining its nice momentum from the past couple days," noted Schaeffer's Senior Equity Analyst Joe Bell, CMT, "although we still remain in a bit of a congestion period." The Dow Jones Industrial Average (DJI) enjoyed another triple-digit surge on the day, closed back above the 15,000 mark, and is on pace for a weekly (and quarterly) gain .

Continue reading for more on today's market, including :

  • What could lead to " crazy trading " tomorrow afternoon, according to Schaeffer's Senior Trading Analyst Bryan Sapp.
  • Seven reasons our Senior Options Strategist Tony Venosa, CMT, thinks AT&T ( T ) looks like a good bearish trading idea .
  • Long-term puts were active in Bank of America ( BAC ) today, as shareholders may have been looking to hedge their bets.


    Two central-bank officials offer soothing words, pending home sales surprise to the upside, and DISH Network ( DISH ) is pounced on by call traders.

It was another strong day for the Dow Jones Industrial Average (DJI - 15,024.49) , which started higher out of the gate, quickly overtook the 15,000 level, and settled with a gain of 114.4 points, or 0.8%. Still overhead, albeit barely, are the index's 50-day and 20-day moving averages. All but two of the blue-chip index's 30 components settled higher today, led by Hewlett-Packard ( HPQ ), which added 3.2%. In negative territory were Johnson & Johnson ( JNJ ) and Coca-Cola (KO), down 0.3% and 0.2%, respectively.

The S&P 500 Index (SPX - 1,613.20) rallied as well, tacking on 9.9 points, or 0.6%, to run headlong into its own 50- and 20-day trendlines. The Nasdaq Composite (COMP - 3,401.86) climbed 25.6 points on the day, gaining 0.8% to outperform the SPX.

The CBOE Market Volatility Index (VIX - 16.86) slid back below the 17 level for the first day in six. At the close, the index had lost 0.4 point, or 2%.


A Trader's Take :

"Stocks were strong from out of the gate, following a strong personal income report before the market opened," added Bell. "We also received a better-than-expected pending home sales report, which helped give equities a nice push. After defensive stocks and consumer staples led during the past couple of days, it was nice to see the small-cap names take a leadership role. The Russell 2000 (RUT) will still need to deal with the round-number 1,000 mark overhead, but it was nonetheless a positive sign for the day."

3 Things to Know About Today's Market :

  • Two Federal Reserve officials -- Charles Dudley, president of New York's Federal Reserve Bank and Fed Governor Jerome Powell -- both delivered relatively dovish statements today, further calming fears of an impending rush to taper bond buying and hike interest rates. Dudley assured investors that, "A rise in short-term rates is very likely to be a long way off," while Powell stated that short-term rates will likely stay near historical lows even after the bond-buying subsides. (Barron's)
  • Initial jobless claims fell by 9,000 to a seasonally adjusted 346,000 last week, the Labor Department reported, roughly in line with estimates for a drop to 345,000. Meanwhile, the National Association of Realtors (NAR) said its pending home sales index soared 6.7% to a six-year high in May. (MarketWatch, Yahoo! Finance)
  • China posted a 15.5% year-over-year jump in industrial profits last month, easily topping economists' expectations. One economist warned that investors should view this number in context, however, as leading indicators are weakening. (CNBC)

5 Stocks We Were Watching Today :

  1. Our Weekly Contrarian : Is EMC Corporation (EMC) vulnerable to a shift in sentiment?
  2. Amid reports of wireless connectively issues for MacBook Air users, Apple Inc. (AAPL) faced another price-target reduction.
  3. DISH Network ( DISH ) rallied to a new five-year high -- and attracted call traders -- after dropping its bid to buy Clearwire Corporation (NASDAQ:CLWR)..
  4. Weekly NIKE, Inc. (NKE) put options were popular ahead of the company's earnings report.
  5. As gold prices continued to tumble, Newmont Mining (NEM) saw an influx of long-term puts change hands.

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


Commodities :

Crude futures extended their winning streak to four sessions, as encouraging economic data bolstered expectations for demand. By the close, August-dated oil added $1.55, or 1.6%, to end at $97.05 per barrel.

On the other hand, gold futures continued their descent, thanks to a strengthening dollar and a diminished appetite for "safe haven" investments. By the time the dust settled, gold for August delivery gave up $18.20, or 1.5%, to finish at $1,211.60 an ounce.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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