"Optimism that Syria will turn over its chemical weapons sparked strong buying yet again," Schaeffer's Senior Technical Strategist Ryan Detrick, CMT, observed. "This marks the sixth straight up day for the S&P 500 Index (SPX). It's funny, because coming into the dreaded month of September, everyone was explaining why we were due for a big drop. The only problem is that, once again, sentiment became overly bearish, and then the news wasn't as bad as everyone feared. We've been seeing this pattern play out all year, and it looks like it has happened yet again." Meanwhile, another batch of promising economic reports was released overseas. Against this backdrop, the Dow Jones Industrial Average (DJI) secured another triple-digit advance.
Continue reading for more on today's market, including:
The Dow Jones Industrial Average (DJI - 15,191.06) once again cruised higher at the start of the session, and touched an intraday peak of 15,192.13 during the last hour of trading. By the closing bell, the blue-chip bellwether settled just off this high, up 127.9 points, or 0.9% -- its best finish since Aug. 14. Microsoft (NASDAQ:MSFT) led the Dow's 26 advancers with a gain of 2.3%, while Hewlett-Packard (NYSE:HPQ) paced the decliners with a loss of 0.4%.
The S&P 500 Index (SPX - 1,683.99) experienced a slightly choppier ride, but still finished 12.3 points, or 0.7%, higher -- retaking the 1,680 level for the first time on a daily closing basis since mid-August. Meanwhile, the Nasdaq Composite (COMP - 3,729.02) gained 22.8 points, or 0.6%, to close just below a fresh 12-year peak of 3,729.38.
The CBOE Market Volatility Index (VIX - 14.53) tagged a session high of 15.09 within the first 30 minutes of trading, but quickly reversed course. By the close, the "fear gauge" was off 1.1 points, or 7%.
A Trader's Take:
"The one thing that had traders talking was the Dow changing up its components," said Detrick. "The reality is that they are taking out the low-dollar stocks in the index and adding some higher-dollar stocks. Remember, the Dow is price-weighted, meaning a higher-priced stock has more clout than a lower-priced stock -- regardless of market cap. As silly as that sounds, it is what they do and have always done. The Dow has lagged a good deal recently, and small-caps and tech securities have held up well. It makes you wonder if the Dow is picking some high-dollar stocks to try to fix this problem."
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.
9 Levels to Watch for Apple Inc.
Featured Partners: AOL DailyFinance
© 2013 Schaeffer's Investment Research, Inc. 5151 Pfeiffer Road, Suite 250, Cincinnati, Ohio 45242
Phone: (800) 448-2080 FAX: (513) 589-3810 Int'l Callers: (513) 589-3800 Email: email@example.com
All Rights Reserved. Unauthorized reproduction of any SIR publication is strictly prohibited.
Market Data provided by QuoteMedia.com | Data delayed 15-20 minutes unless otherwise indicated.