Despite uncertainty ahead of tomorrow's Fed decision, the Dow Jones Industrial Average (DJI) managed a nice rally, marking a fifth consecutive positive session. "The markets were impressive overall," noted Schaeffer's Senior Equity Analyst Joe Bell, who continued, "European markets traded higher ahead of our open, which helped provide a bit of a boost early on."
Continue reading for more on today's market events, including:
Call it a five-peat for the Dow Jones Industrial Average (DJIA), which settled with a gain of 79 points, or 0.6%. Despite peeling back from its intraday peak of 13,306.57, the index did manage to register its highest daily close since Oct. 22. All but four of the Dow's 30 components moved higher on the day, led by Intel (NASDAQ:INTC), which gained 2.8%. At the back of the pack was Wal-Mart Stores (NYSE:WMT), down 1.8% on news that India's government may launch an inquiry into the retailer's lobbying practices.
The S&P 500 Index (SPX) climbed nine points on the day, or 0.7%, to overcome short-term resistance at 1,420. Turning to tech, the Nasdaq Composite (COMP) surged 1.2%, or 35 points, to retake control of its 10-day moving average.
The CBOE Market Volatility Index (VIX) shifted lower on the day, meanwhile, losing 0.5 point, or 3%, to once again breach the 16 mark.
A Trader's Take:
"We climbed steadily higher throughout the day and broke out of the short-term consolidation we've been experiencing for the past two weeks," observed Bell. "While this is a short-term technical win for the bulls, the 1,430 area will be the next hurdle for the S&P 500 Index to overcome. Meanwhile," he continued, "Apple continues its bounce off support near the $520 level. As a result -- and given the stock's heavy weighting within tech indices -- the technology sector was able to end the day as one of the top performers."
3 Things to Know About Today's Market:
Plus ... for the third year in a row, Harvard Business School is the best place to earn one's MBA, according to Poets&Quants, which aggregates the graduate-program rankings from five sources, including Forbes and The Economist. Taking the runner-up position is Stanford, followed by the University of Chicago's Booth School of Business and the University of Pennsylvania's Wharton School.
Today's Top Tweet:
"$$ The pattern of constant V shape recovery rallies is incredible. This will end once everyone starts looking for them."
@geckojb, 11:49 a.m.
5 Stocks We Were Watching Today:
Question of the Day:
Q: If I am short an in-the-money option, will it immediately be exercised?
A: As long as there is time value left in an option, it is more efficient (and often more profitable) for the option buyer to sell out of a long/purchased option rather than exercise it. Therefore, investors who have sold options that become in the money probably won't see them exercised until the time value has eroded away to nothing (or the option is very close to expiration).
For a look at today's options movers and commodities activity, head to page 2.
The Case for Big Moves in IWM and QQQ
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