Stocks bounced back from yesterday's defeat today, as the Street cheered a slew of upbeat economic reports. The government announced that initial jobless claims fell to a 14-month low last week, while sales of new homes increased at a faster-than-expected pace in October. In addition, Uncle Sam reported that consumer spending increased by 0.7% last month, rebounding from September's 0.6% decline, and sparking widespread optimism ahead of the holiday shopping season. Elsewhere, the U.S. dollar continued its slide against its foreign rivals, helping to extend gold's recent string of record highs. Though trading volume was relatively light, the major market indexes bewitched enough bulls to kick off the Thanksgiving holiday in the black.
The Dow Jones Industrial Average (DJIA 10,464.40) effectively negated yesterday's losses, adding a modest 30.7 points, or 0.3%, by the close. Only 11 of the Dow's 30 components bucked the trend, with Kraft Foods (KFT) leading the laggards, while industrial issues Boeing (BA) and Caterpillar (CAT) paved the path higher; shares of Cisco Systems (CSCO) settled right where they started.
The S&P 500 Index (SPX 1,110.63) fared the best of the major market indexes, advancing 5 points, or 0.5%. However, the broad-market barometer's journey into the black was halted by the 1,110 level, which has acted as a ceiling during the past several sessions. Finally, the Nasdaq Composite (COMP 2,176.05) finished with a gain of 6.9 points, or 0.3%, erasing yesterday's deficit and climbing back atop its 10-day moving average.
Turning to equities in focus, EMC Corporation (EMC) updated its fourth-quarter earnings outlook ... Put traders targeted Marvell Technology Group (MRVL) ahead of earnings ... Schaeffer's Tool Box provided three potential trading ideas for Myriad Genetics Inc. (MYGN) ... Elizabeth Harrow discussed everything you need to know about an option's delta ... A bullish strategist bet on more new highs for A-Power Energy Generation Systems (APWR) ... and today's Quote of the Day comes from President Barack Obama. Celebrating his first Thanksgiving in office, the commander-in-chief pardoned the traditional turkey and waxed nostalgic on his political ambitions, stating:
"There are certain days that remind me of why I ran for this office. And then there are moments like this where I pardon a turkey and send it to Disneyland."
But these weren't the only headlines hitting the Street today. Click on the links below for our Daily Option Blog coverage of:
And, in case you missed it, Joseph Hargett examined the prospects for IntercontinentalExchange (ICE) in the latest edition of Casual Contrarian. Click here to watch the video.
For today's activity in crude oil, gold futures, options, and more, turn to page 2.
Crude futures muscled higher today, with help from the ailing dollar and the government's latest inventory statistics. The Energy Information Administration (EIA) said that domestic oil supplies increased by 1 million barrels in the week ended Nov. 20, falling short of economists' predictions for a rise of 1.4 million barrels. The data also indicated that petroleum demand escalated 1.7% last week, though the figures remain lower year-ago levels. Against this backdrop, January-dated crude oil added $1.94, or 2.6%, to settle at $77.97 per barrel.
Elsewhere in the commodities pits, gold futures rallied to yet another record high today, thanks to the weak dollar and speculation that India may purchase more of the malleable metal. According to India's Financial Chronicle, the country's central bank is considering the purchase of 201.3 tons of gold from the International Monetary Fund (IMF). After touching a new all-time high of $1,187.50 an ounce earlier in the session, gold for December delivery settled with a gain of $21.20, or 1.8%, at $1,187 an ounce marking the contract's ninth consecutive finish in the black.
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