Dow Jones Industrial Average Follows Energy North; Manufacturing Cools Off

President Obama unveiled a nearly $4 trillion budget

by Alex Eppstein

Published on Feb 2, 2015 at 4:17 PM
Updated on Apr 20, 2015 at 5:32 PM

The Dow Jones Industrial Average (INDEXDJX:DJI) started off February on the right foot, as a rebound in energy outweighed a generally disappointing round of economic data. Specifically, while crude futures ended at a roughly one-month high -- and blue chip Exxon Mobil Corporation (NYSE:XOM) rallied on an earnings beat -- consumer spending unexpectedly slowed by the widest margin since late 2009, and a pair of manufacturing reports missed the Street's projections. Nevertheless, after spending some time below breakeven, the Dow ended on a nearly 200-point gain. Looking ahead, blue chip Walt Disney Co (NYSE:DIS) will report quarterly results tomorrow night, while auto sales and factory orders headline the economic docket.

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

The Dow Jones Industrial Average (DJI - 17,361.04) traced a more than 300-point range during the day, and ended near a session high, up 196.1 points, or 1.1%. Twenty-nine of the Dow's 30 components settled atop the flatline, paced by Chevron Corporation's (NYSE:CVX) 3.4% advance. Nike Inc (NYSE:NKE) was the lone decliner, losing 0.4%.

The S&P 500 Index (SPX - 2,020.85) and Nasdaq Composite (COMP - 4,676.69) also finished near and at their respective daily peaks. The SPX tacked on 25.9 points, or 1.3%, while the COMP added 41.5 points, or 0.9%.

The CBOE Volatility Index (VIX - 19.43) gave back 1.5 points, or 7.3%, to close below the round-number 20 mark.

CLOSING SUMMARY – INDICES

CLOSING SUMMARY – NYSE AND NASDAQ

5 Items on Our Radar Today:

  1. President Barack Obama presented a $3.99 trillion budget, focused on shutting down overseas tax loopholes in order to fund a number of new programs and infrastructure upgrades. During a speech at the Department of Homeland Security, the president also emphasized a desire to end the practice of sequestration, describing the across-the-board budget cuts as "mindless austerity." (USA Today)
  2. The Institute for Supply Management's (ISM) manufacturing index slowed to a worse-than-expected 53.5 in January -- its lowest reading in a year. Markit's purchasing managers' manufacturing index (PMI) also remained at an annual low of 53.9, and fell short of expectations. (MarketWatch)
  3. Call buyers emerged in Tesla Motors Inc's (NASDAQ:TSLA) options pits amid analyst-induced positivity.
  4. How the fall-off in U.S. oil rigs impacted shares of this drilling company.
  5. A statement from Greece's new ruling party proved a boon to this financial stock, and had calls flying off the shelves.
EARNINGS

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

STOCKS – NOTABLE CALL ACTIVITY

STOCKS – NOTABLE PUT ACTIVITY

Commodities:

Crude continued to recover, but fears of a U.S. refinery strike and a potential build in stockpiles capped gains. Crude for March delivery added $1.33, or 2.8%, to land at $49.57 per barrel -- the contract's highest perch in nearly a month.

After an impressive January performance, gold caught its proverbial breath. At the close, April-dated gold was down $2.30, or 0.2%, to settle at $1,276.90 per ounce.


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