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Record-Setting Day Leaves Dow Jones Industrial Average Back Above 17K

The DJI touched a new record high in today's trading

by 7/14/2014 4:19:28 PM
Stocks quoted in this article:

Stocks started the week on a positive note, with the Dow Jones Industrial Average (DJI) rallying to a new record high by midday. A stronger-than-forecast earnings report from Citigroup Inc (NYSE:C) helped set the bullish tone, while traders also cheered merger-and-acquisition developments in the pharmaceutical sector. By the time the closing bell sounded, the DJI was planted back above 17,000, while the market's "fear index" was solidly lower.

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

  • A banking giant, a tech turnaround story, and a traditionally defensive blue chip will command Wall Street's attention with their Tuesday earnings reports.
  • Encouraging news out of China for Tesla Motors, Inc. (NASDAQ:TSLA) sparks some last-minute option activity in the soon-to-expire July series.
  • Schaeffer's contributor Adam Warner shares two important lessons to be learned from last week's VIX pop.
  • Plus .... a big news day for Citigroup, high hopes for Apple Inc. (NASDAQ:AAPL), and the worst sell-off of the year for gold futures.
Trading Topic of the Week -- How to Get Started with Options: Study the lingo. Even if you have a strong background in stock trading, you need to learn options-specific phrases such as sell to open, delta, time decay -- and many more.

The Dow Jones Industrial Average (DJI - 17,055.42) ended the day on a gain of 111.6 points, or 0.7%, after hitting a fresh all-time peak of 17,088.43 earlier in the session. Visa Inc (NYSE:V) led the 25 advancing Dow components with a 1.9% rise, while Merck & Co., Inc. (NYSE:MRK) shed 0.4% to pace the five decliners.

The S&P 500 Index (SPX - 1,977.10) closed up 9.5 points, or 0.5%, after touching a session high of 1,979.85 -- within 6 points of its own all-time record. The Nasdaq Composite (COMP - 4,440.42) peaked just north of the 4,450 level on an intraday basis before settling on a gain of 24.9 points, or 0.6%.

The CBOE Volatility Index (VIX - 11.82) tumbled right out of the gate today, eventually closing on a deficit of 0.3 point, or 2.2%. As a result, the VIX ended its short-lived, two-session streak above its 50-day moving average.

CLOSING SUMMARY – INDICES

CLOSING SUMMARY – NYSE AND NASDAQ

5 Items on Our Radar Today:

  1. Citigroup struck a $7 billion settlement with the U.S. Justice Department over risky mortgage-lending practices that contributed to the housing market's collapse. Of that sum, $2.5 billion is earmarked for mortgage modifications and other forms of assistance for strapped homeowners. Separately, Citigroup topped analysts' expectations by reporting an adjusted second-quarter profit of $1.24 per share. (CNNMoney; USA Today)
  2. The Home Depot, Inc. (NYSE:HD) today started selling 3-D printers in 12 stores across the U.S., as part of a pilot program "to make sure we are on the forefront of a new innovative product," according to Joe Downey, an online buyer at HD. MakerBot printers have already been available through Home Depot's website for months. (Bloomberg)
  3. The options market is pricing in expectations for a big move out of Apple Inc. (NASDAQ:AAPL) following next week's earnings report.
  4. Some bearish media coverage contributed to surging demand for short-term options on GoPro Inc (NASDAQ:GPRO).
  5. Traders opted for bullish bets on Intel Corporation (NASDAQ:INTC) in anticipation of Tuesday night's earnings report.
EARNINGS

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

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