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Crude oil snapped its seven-week losing streak
Bulls grabbed hold of the wheel today, sending the Dow Jones Industrial Average (INDEXDJX:DJI) to its first daily win of the week. However, there was no shortage of volatility, with the DJI spanning a 285-point trading range. Helping stocks erase early losses was a big bounce in crude oil, as well as an upbeat reading on consumer sentiment. This burst of buying power was not relegated to blue chips, however, with the broader S&P 500 Index (SPX) reclaiming its perch atop the highly watched 2,000 mark and the tech-heavy Nasdaq Composite (COMP) rallying back after Thursday's sharp drop.
Continue reading for more on today's market, including:
The Dow Jones Industrial Average (DJI - 17,511.57) was off more than 77 points at its intraday low, but bounced back to close 190.9 points, or 1.1%, higher. Twenty-seven of the Dow's 30 components gained ground, led by a 3.1% pop for Home Depot Inc (NYSE:HD). Among the three decliners, Goldman Sachs Group Inc (NYSE:GS) and Wal-Mart Stores, Inc. (NYSE:WMT) each shed 0.7%, while Caterpillar Inc. (NYSE:CAT) gave back 0.6%. Week-over-week, the DJI surrendered 1.2%.
In similar fashion, the S&P 500 Index (SPX - 2,019.42) fell to its lowest intraday mark since Dec. 17 in early trading, before rallying back to a 26.8-point, or 1.3%, gain. The Nasdaq Composite (COMP - 4,634.38) fared the best of its peers, settling up 63.6 points, or 1.4%. For the week, the SPX and COMP fell 1.2% and 1.5%, respectively.
The CBOE Volatility Index (VIX - 20.95) fell 1.4 points, or 6.4%, but still managed to notch its highest weekly close since mid-December. However, although the market's "fear gauge" jumped 19.4% on a weekly basis, it found a stern layer of resistance from its 320-week moving average.
5 Items on Our Radar Today:
- Consumer sentiment jumped to its highest perch in 11 years in January, according to preliminary data from the University of Michigan. Specifically, the index rose to 98.2 from last month's final reading of 93.6, boosted by an uptick in job creation and a drop in gasoline prices. Elsewhere on the economic front, both consumer prices and industrial output declined in December. (Bloomberg; CNBC; MarketWatch)
- It was a rough week for big banks on the earnings stage -- including JPMorgan Chase & Co. (NYSE:JPM) and Bank of America Corp (NYSE:BAC) -- and this morning's results from Goldman Sachs were no exception. The financial firm's fourth-quarter profit plunged 7.1% to $4.38 per share, while revenue dropped 12% to $7.69 billion. Although both numbers exceeded consensus estimates, the shares fell 0.7% on the day. (MarketWatch)
- Delta hits the earnings confessional bright and early Tuesday morning, and skepticism has been building on the airline issue ahead of the results.
- News of a poison pill sent option bulls scrambling for E2open Inc (NASDAQ:EOPN) calls.
- Analysts can't seem to make up their mind on Apple Inc. (NASDAQ:AAPL).
For a look at today's options movers and commodities activity, head to page 2.
Commodities:
Crude oil rallied today following the strong consumer sentiment report, as well as an International Energy Agency report of ebbing production. By the close, crude for February delivery was up $2.44, or 5.3%, at $48.69 per barrel. Week-over-week, liquid gold tacked on 0.7% -- snapping its seven-week losing streak.
The chaos in Switzerland created a boon for gold futures today. At session's end, February-dated gold was $12.10, or 1%, higher at $1,276.90 per ounce -- its loftiest settlement since Aug. 29. On the week, the malleable metal rallied 5%.