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3 Days, 3 New Highs for the Dow Jones Industrial Average

The DJI touched an all-time best for the third session in a row, with tech leading the way

by 7/16/2014 4:22:18 PM
Stocks quoted in this article:

The Dow Jones Industrial Average (DJI) touched a new record high for the third day in a row, as traders cheered a bevy of bullish developments, including: blowout earnings from Intel Corporation (NASDAQ:INTC); a major partnership between Apple Inc. (NASDAQ:AAPL) and its former foe, International Business Machines Corp. (NYSE:IBM); and fresh buyout buzz for media giant Time Warner Inc (NYSE:TWX). Tech stocks were among the day's big gainers -- but a number of social media names struggled for a second session, even though Fed Chair Janet Yellen attempted to strike a softer tone regarding valuation concerns for the group. By the close, the major big-cap indexes were all comfortably higher, while small-caps lagged.

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

Trading Topic of the Week -- How to Get Started with Options: Stick with basic strategies. Make sure you master the fundamentals before spreading your wings with iron condors and long butterflies.

The Dow Jones Industrial Average (DJI - 17,138.20) rallied 77.5 points, or 0.5%, after touching a record peak of 17,139.35 earlier in the session. With a jump of 9.3%, Intel was far and away the day's best-performing blue chip -- but Microsoft Corporation (NASDAQ:MSFT) added an impressive 3.8%, while IBM closed 2.1% higher. While this tech trio paced the 21 advancing Dow members, Nike Inc (NYSE:NKE) led the nine laggards with a 1.4% pullback.

The S&P 500 Index (SPX - 1,981.57) also closed higher, rising 8.3 points, or 0.4%. The Nasdaq Composite (COMP - 4,425.97) brought up the rear with a gain of 9.6 points, or 0.2%.

The CBOE Volatility Index (VIX - 11.00) took a big hit today, ending on a loss of nearly 1 point, or 8%. It was the VIX's lowest daily close since July 3.

CLOSING SUMMARY  INDICES

CLOSING SUMMARY  NYSE AND NASDAQ

5 Items on Our Radar Today:

  1. General Electric Company (NYSE:GE) is looking to unload its iconic GE Appliances and Lighting division, according to sources close to the matter. The unit was responsible for upwards of $8 billion in revenue last year, and people familiar with the situation indicate that the business could bring in a sale price of $1.5 billion to $2.5 billion. (Reuters)
  2. Economic conditions improved in the U.S. last month, according to the Federal Reserve's latest Beige Book. Growth was modest to moderate, with labor markets and consumer spending on the upswing in the majority of Fed districts. Additionally, "Most districts were optimistic about the outlook for growth," noted the report. (MarketWatch)
  3. Hewlett-Packard Company (NYSE:HPQ) attracted some speculative attention on a big news day for the tech sector.
  4. Option bears placed their bets on NVIDIA Corporation (NASDAQ:NVDA) ahead of earnings.
  5. Traders might be expecting Akamai Technologies, Inc. (NASDAQ:AKAM) to continue its trend of post-earnings rallies.
EARNINGS

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

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