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Dow, S&P 500 Continue Into Uncharted Territory

Gold adds 3.3% for the week on growing safe-haven demand

by 6/20/2014 4:20:49 PM
Stocks quoted in this article:

Investors spent a data-free quadruple-witching Friday combing over a handful of earnings reports and tracking the latest developments out of Iraq. Geopolitical concerns did not prohibit the major indexes from rallying to new highs, however, as both the Dow Jones Industrial Average (DJI) and the S&P 500 Index (SPX) tagged new all-time and closing peaks.

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

  • See what Credit Suisse had to say about this trio of solar names.
  • Some last-minute option bears gambled on CarMax, Inc (NYSE:KMX), despite the auto dealer's earnings-induced spike.
  • This major firearms name plummeted on a predicted slowdown in sales.
  • Plus ... Tensions in Iraq build, Oracle Corporation (NYSE:ORCL) disappoints, and the oil sector sees an influx of speculative activity.
Trading Topic of the Week -- Reasons to Dodge Directional Risk: Reduce your reliance on stop-losses. With straddles, your dual directional exposure means you won't suffer major initial losses due to market volatility or adverse price movement.

The Dow Jones Industrial Average (DJI - 16,947.08) tagged a new intraday high of 16,978.02 before closing up 25.6 points, or 0.2%. On a weekly basis, the blue-chip index gained 1%. Nineteen of the Dow's components closed higher today, paced by Caterpillar Inc. (NYSE:CAT), which jumped 2%. Pacing the declining minority was The Walt Disney Company (NYSE:DIS), which logged a 1.1% loss.

Also nabbing a new all-time high was the S&P 500 Index (SPX - 1,962.87), which extended to 1,963.91 before closing just shy of this level, up 3.4 points, or 0.2%. The Nasdaq Composite (COMP - 4,368.04) rose to another 14-year closing high, ending 8.7 points, or 0.2%, higher on the day. The SPX gained 1.4% for the week, while the COMP added 1.3%.

The CBOE Volatility Index (VIX - 10.85) hit a new seven-year low of 10.34 in intraday trading -- and also moved north of the 11 mark, to 11.02 -- but ultimately closed up 0.2 point, or 2.2%, but closed the week 10.9% lower.

CLOSING SUMMARY  INDICES

CLOSING SUMMARY  NYSE AND NASDAQ

5 Items on Our Radar Today:

  1. With nothing on the economic calendar, market participants continued to monitor developments overseas. Iraqi troops began to gather north of Baghdad to combat encroaching Sunni militants. Meanwhile, rumors that Prime Minister Nuri al-Maliki will be urged to relinquish his post grew louder, and President Barack Obama held off on issuing air strikes, despite requests from the country's government. (Reuters, via The Huffington Post)
  2. Oracle Corporation (NYSE:ORCL) reported fiscal fourth-quarter earnings and revenue that fell just short of analysts' expectations. The business model is shifting at the software name; as the company's president noted, "more software revenues are being recognized over the life of the subscription rather than upfront." (CNBC)
  3. Amazon.com, Inc. (NASDAQ:AMZN) was targeted by eleventh-hour bears looking to profit on a quick move lower.
  4. A look at recent option trends in the United State Oil Fund LP (ETF) (NYSEARCA:USO), courtesy of Schaeffer's contributor Adam Warner.
  5. Following a one-two punch of lackluster news, Coach Inc (NYSE:COH) was swatted with several bearish brokerage notes.
EARNINGS

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

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