Markets

Stocks Bounce Back on Strong Domestic Data

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"After yesterday's crash in the gold market and the broad-market sell-off, it was nice to see a bit of a relief rally today," said Schaeffer's Senior Equity Analyst Joe Bell. Some better-than-expected economic numbers helped lift the Dow Jones Industrial Average (DJI) nearly 160 points as it battled back from Monday's steep loss. Meanwhile, the S&P 500 Index (SPX) bounced back toward the top end of its familiar trading range between 1,550 and 1,575.

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

  • Schaeffer's Senior Trading Analyst Bryan Sapp discusses levels to watch now, and timing the next "big move" for stocks.
  • For those looking to buy gold after its pullback , our Senior Options Strategist Tony Venosa, CMT, outlines how to plot a long trade in the SPDR Gold Trust (NYSEARCA:GLD).
  • And speaking of the GLD, was smart money betting against gold at just the right time?

plus...

  • Stocks pare some of Monday's losses, new home sales surprise to the upside, and Intel ( INTC ) traders are hopeful ahead of earnings.

The Dow Jones Industrial Average regained more than half of Monday's losses, adding almost 158 points, or 1.1%, to close at 14,756.78. This was just shy of the index's intraday peak and back above its 10-day moving average. All but two of the Dow's 30 components moved higher on the day, led by Coca-Cola ( KO ), which added 5.7% after its earnings report. Verizon Communications ( VZ ) was the day's biggest loser, dropping 0.4% despite hitting a new 52-week high in intraday trading.

The S&P 500 Index (SPX) moved higher as well, tacking on 1.4%, or 22 points, to close at 1,574.57. The Nasdaq Composite (COMP) was the best-performing index by a slight margin, adding 1.5%, or 48 points, to end the day at 3,264.63.

After yesterday's mammoth move, the CBOE Market Volatility Index (VIX) spiraled lower today, falling back 3.3 points, or 19%, to 13.96.

CLOSING SUMMARY - INDICESCLOSING SUMMARY - NYSE AND NASDAQ

A Trader's Take :

"Materials and commodity stocks led the way today, as they attempted to dig themselves out of the hole they dropped into on Monday," noted Bell. "Elsewhere, we had a mixed day on the earnings front, but were greeted by some better-than-expected housing data this morning. Housing-related stocks have hit some speed bumps in the past couple of months, so this was nice to see," he added.

3 Things to Know About Today's Market :

  • Housing starts -- a measure of new residential construction -- jumped 7% in March to a seasonally adjusted annual figure of 1.04 million, reflecting a year-over-year increase of roughly 46%. The figure was above economists' projections and was the fastest pace in nearly five years. (Los Angeles Times)
  • The Consumer Price Index, or CPI, edged 0.2% lower in March, according to the Labor Department. What's more, prices have gained just 1.5% in the last 12 months, as inflation has remained at bay. (CNN Money)
  • Goldman Sachs ( GS ) booked a first-quarter profit of $4.29 per share (excluding items), on revenue of $10.09 billion. Both figures topped analysts' expectations. (CNBC)

5 Stocks We Were Watching Today :

  1. Apple Inc. ( AAPL ) was swatted with price-target reductions at two brokerage houses this morning.
  2. Pre-earnings call buyers hope Intel Corporation ( INTC ) will buck its standing post-earnings trend.
  3. With earnings due Thursday, Nokia Corporation (NOK) was targeted for short-term gains by option bulls.
  4. Long-term call buyers expressed optimism on the future of Yahoo! Inc. (YHOO).
  5. Green Mountain Coffee Roasters (GMCR) captured the attention of in-the-money call buyers today.
EARNINGS

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

STOCKS - NOTABLE CALL ACTIVITYSTOCKS - NOTABLE PUT ACTIVITY

Commodities :

Ahead of tomorrow's weekly inventories report, oil futures were little changed, failing to rebound after Monday's decline. May-dated crude edged up 1 cent to close at $88.72 per barrel.

Gold futures bounced back today -- but not by much, relative to their two-day drop of more than $200 an ounce. By the close, June-dated gold had gained $26.30, or 1.9%, to $1,387.40 an ounce.

SCHAEFFER'S MARKET POSTURE

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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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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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