Stocks frolicked in the black from start to finish today, with an upbeat forecast from Cisco Systems (CSCO) jump-starting the blue chips. In addition, the Street cheered as retailers posted solid gains for the second straight month in October, according to the International Council of Shopping Centers-Goldman Sachs. The monthly sales figures were mostly stronger than anticipated, sparking optimism about consumer spending habits ahead of the upcoming holiday shopping season. Elsewhere, the Labor Department reported that first-time jobless claims fell to a 10-month low of 512,000 last week, declining by a wider margin than economists expected. The bulls found the weekly unemployment data promising ahead of the government's highly anticipated payrolls report, slated to hit the Street tomorrow. By the closing bell, all the stars seemingly aligned, with the Dow Jones Industrial Average reclaiming a perch atop 10,000 for the first time in two weeks.
The Dow Jones Industrial Average (DJIA 10,005.96) skyrocketed right out of the gate this morning, settling with a gain of 203.8 points, or 2.1%. All of the Dow's 30 blue chips finished in the black, led by financial issues American Express (AXP) and JPMorgan Chase (JPM). In the wake of today's triple-digit rally - the best single-session advance since mid-July - the blue-chip barometer reclaimed its foothold atop the 10,000 level for the first time since Oct. 22.
The S&P 500 Index (SPX 1,066.63) finished at a session peak, adding 20.1 points, or 1.9%, by the close. As a result, the broad-market index successfully clawed its way atop its 10-day moving average for the first time in two weeks. Not to be outdone, the Nasdaq Composite (COMP 2,105.32) advanced 49.8 points, or 2.4%, with the tech-rich index finding intraday support at the 2,100 level. The COMP also reclaimed the short-term support of its 10-day trendline for the first time in 10 sessions.
Turning to equities in focus, Aeropostale, Inc. (ARO) bucked the broad-market trend higher, despite boosting its earnings forecast ... Demand for Conagra Foods (CAG) puts appears to be elevated, as highlighted by the Schaeffer's Implied Volatility Ratio Scan ... Elizabeth Harrow and Rocky White explained the sentiment insight provided by the gamma-weighted SOIR ... DISH Network (DISH) could be a candidate for a short call butterfly ahead of earnings ... One advanced option trader is betting on stagnation for Oracle Corp. (ORCL) ... and today's Quote of the Day comes from 5-year-old Keith Wong of China. Walt Disney Co. (DIS) recently obtained permission to open its next theme park in Shanghai. However, the cartoon king is expected to have competition, with Hong Kong rival Ocean Park currently reviewing requests for franchised theme parks from cities across Asia. While Ocean Park has been considered more exciting and educational than its American competitor, Wong gives just one reason for why he'd rather attend the latter, stating:
"Disney has Mickey Mouse."
But these weren't the only headlines hitting the Street today. Click on the links below for our Daily Option Blog coverage of:
And, in case you missed it, Schaeffer's Senior Equities Analyst Richard Sparks offered up his two cents on the current state of the market. Click here to watch the video.
For today's activity in crude oil, gold futures, options, and more, turn to page 2.
Crude futures snapped a three-session winning streak today, as black gold turned lower on the heels of the government's latest inventory data. Though domestic crude inventories unexpectedly declined by 4 million barrels in the week ended Oct. 30, the Energy Information Administration (EIA) said total demand for petroleum products remained subdued. More specifically, the EIA reported that oil demand over the past four weeks was down 4.5% from the period a year ago, spooking bulls in the commodities pits. Against this backdrop, December-dated crude oil gave up 78 cents, or 1%, to settle at $79.62 per barrel.
However, gold futures extended their recent winning streak to four consecutive sessions today, as investors cheered the latest round of interest-rate decisions across the globe. After the Federal Reserve announced its policy statement on Wednesday, the Bank of England and the European Central Bank both followed suit, vowing to keep rates at record lows of 0.5% and 1%, respectively. In addition, investors remained optimistic that India could buy more gold from the International Monetary Fund (IMF), following its purchase of 200 tonnes on Monday. By the close, gold for December delivery added $2, or 0.2%, to finish at $1,089.30 an ounce. Earlier in the session, the most active contract tagged an intraday peak of $1,095.20 an ounce.
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