The equities market seemed to shrug off a double dose of dismal economic data today, with investors virtually ignoring the latest decline in both home prices and consumer confidence. Instead, the Street turned its attention to a rare iota of encouraging housing stats, with the National Association of Realtors reporting a 6.6% rise in existing-home sales in December. Also bolstering sentiment were the latest earnings figures from DuPont (DD), which exceeded analysts' expectations. In addition, shares of American Express Company (AXP) helped boost financials, with the credit-card concern rallying more than 9.5% in the wake of its fourth-quarter earnings report. However, not all was rosy on Wall Street today, with crude futures logging their heftiest decline in weeks.
The Dow Jones Industrial Average (DJIA 8,174.73) logged a gain of almost 59 points, or 0.72%, with the blue-chip barometer ending the session atop its 10-day moving average for the first time since Jan. 6. Only 5 of the index's 30 components ended in the red, led by Home Depot (HD) and Verizon (VZ).
The S&P 500 Index (SPX 845.70) also finished atop its 10-day trendline a feat not accomplished in more than 3 weeks. At the closing bell, the broad-market index added 9 points, or 1.09%. Finally, the Nasdaq Composite (COMP 1,504.9) settled for a gain of 15 points, or 1.04%, ending atop the round-number 1,500 level for the first time in 4 sessions.
Turning to equities in focus, options players remained optimistic heading into Hoku Scientific's (HOKU) looming date in the earnings spotlight ... Steel Dynamics, Inc. (STLD) tested resistance in the wake of the commodity concern's latest earnings report ... Genco Shipping & Trading Limited (GNK) announced plans to suspend its dividend ... Bullish bets surged on tobacco titan Philip Morris International Inc. ... Pessimistic positions piled up on PNC Financial Services (PNC) ... and today's Quote of the Day comes from Sacramento resident Fred Mayers, commenting on Governor Arnold Schwarzenegger's proposal to tax rounds of golf. In response to the Terminator's plans to address California's revenue shortfall, Mayers opined:
"We're old and retired. We don't need any more taxes."
But these weren't the only headlines hitting the Street today. Click on the links below for our Daily Market Blog coverage of:
And, in case you missed it, Colleen King explained the difference between stop-loss and all-or-none orders in this week's edition of Introduction to Options. Click here to watch the video.
For today's activity in crude oil, gold futures, options, and more, turn to page 2.
For the second consecutive session, crude oil futures tumbled into the red today. March-dated oil was pressured lower beneath today's discouraging consumer confidence data and news of tumbling home prices. Also battering crude prices were predictions regarding U.S. crude inventories, with analysts, on average, forecasting domestic oil supplies to reach a 17-month high during the latest week. By the closing bell, crude for March delivery dipped $4.15, or 9.1%, lower to end at $41.58 per barrel. On a percentage basis, today's decline marked black gold's heftiest loss since Jan. 7.
In parity with oil, gold futures inched lower today, falling for the first time in 4 sessions. The malleable metal's appeal was diminished by the strengthening dollar, with the greenback gaining ground against most of its foreign rivals. When all was said and done, gold for February delivery ended $9.30, or 1%, lower at $899.50 an ounce. Elsewhere in the metals market, March-dated copper surrendered 6.4% to $1.4845 a pound, while March palladium shed 1% to $191 an ounce.
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