Stocks enjoyed a serious boost today, continuing the positive momentum that left the Dow perched above 10,000 by the end of last week. Investors were initially heartened by news that the Group of 20 (G20) finance ministers decided over the weekend to maintain current economic stimulus measures, in order to "restore the global economy and financial system to health." Elsewhere, in equity news, positive developments for a pair of Dow members fanned the bullish flames. General Electric (GE) and Comcast (CMCSA) have reportedly agreed on a fair valuation for the former company's NBC Universal unit, according to The Wall Street Journal, hinting that a joint venture deal could be imminent. Fast-food titan McDonald's (MCD), meanwhile, reported a 3.3% jump in same-store sales for October, as robust results from around the globe offset a weak month on the home front. Traders took the opportunity to send the Dow Jones Industrial Average to a new 52-week peak, with the index tagging its highest price since Oct. 6, 2008.
After tagging an intraday peak of 10,228.23, the Dow Jones Industrial Average (DJIA 10,226.94) settled on a healthy advance of 203.5 points, or 2%. All but one of the Dow's 30 components closed higher; Kraft (KFT) sank into the red as traders panned its newly hostile buyout bid for Cadbury (CBY). Meanwhile, financial firms American Express (AXP) and Bank of America (BAC) racked up the day's biggest gains.
The S&P 500 Index (SPX 1,093.08) also bolted higher, with the broad-market barometer tacking on 23.8 points, or 2.2%, by the time the closing bell sounded. The SPX is once again gearing up to test short-term resistance at the 1,100 level, which capped its progress in mid-October. Finally, the Nasdaq Composite (COMP 2,154.06) surged 41.6 points, or roughly 2%, by the end of the day. Looming overhead is the stubborn 2,200 region, a former supportive level which has more recently stifled the COMP's momentum.
Turning to equities in focus, General Electric (GE) attracted mixed debit spread activity in the wake of today's Comcast developments ... RadioShack (RSH) rallied sharply after Friday's well-received iPhone announcement ... Andrea Kramer explained the pros and cons of writing naked calls ... With technical resistance looming, bulls are taking a cautious approach with Baidu, Inc. (BIDU) ... NetEase.com (NTES) emerged as a potential strap candidate ahead of earnings ... and today's Quote of the Day comes from Sandy Beall, the chief executive of Ruby Tuesday (RT), who recently sat down with The New York Times to dish on his restaurant chain's upscale makeover. When it comes to dining out, as Beall sees it, the consumer's choice is simple:
"If you really care what you put in your body, Ruby's is a good place for you. If you don't care, hell, go to Hardee's."
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, Jocelynn Drake turned her Options Spotlight on Dow member DuPont (DD). Click here to watch the video.
For today's activity in crude oil, gold futures, options, and more, turn to page 2.
Crude futures joined the equities market in blazing a path higher today, with weakness in the U.S. dollar prompting renewed interest in black gold. The buck was hammered after the G20 summit over the weekend produced little support for the safe-haven currency, and the group's pledge to maintain economic stimulus measures simultaneously stimulated the market's appetite for risk -- both of which served as bullish drivers for crude today. Traders also kept an eye on Tropical Storm Ida, which has prompted several production shutdowns along the Gulf Coast. By the close, crude oil for December delivery added $2.00, or 2.6%, to finish at $79.43 per barrel.
The U.S. dollar's swoon also proved to be a positive driver for gold futures today, with the malleable metal flaunting its appeal as an alternative investment vehicle. As a result, gold continued its record-setting streak -- the most active December contract tapped an intraday peak of $1,111.70 per ounce, blowing away the previous all-time high. Gold for December delivery wrapped up the session on a healthy gain of $5.70 at $1,101.40 per ounce.
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