Dow Jones Industrial Average Higher as Blue Chips Impress

Existing home sales soared to their highest perch in 18 months

Apr 22, 2015 at 4:21 PM
facebook twitter linkedin

The Dow Jones Industrial Average (DJIA) got off to a shaky start today, but bolted into the black in late-morning morning trading. Lifting the blue-chip barometer was Visa Inc (NYSE:V), which catapulted higher on encouraging news out of China. In addition, a pair of upbeat earnings reports from fellow blue chips McDonald's Corporation (NYSE:MCD) and The Coca-Cola Co (NYSE:KO) helped the Dow's ascent, offsetting lackluster figures from Boeing Co (NYSE:BA). Against this backdrop -- and thanks in part to some encouraging housing stats -- the major market indexes ended comfortably higher, with the Dow climbing back atop 18,000.

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

The Dow Jones Industrial Average (DJIA - 18,038.27) traded in a 168-point range, before settling up 88.7 points, or 0.5%. Twenty-four of the Dow's 30 components gained ground, led by V's 4.1% pop. BA paced the seven decliners with its 1.4% loss.

Likewise, the S&P 500 Index (SPX - 2,107.96) spent time south of breakeven today, before muscling to a 10.7-point, or 0.5%, win. The Nasdaq Composite (COMP - 5,035.17), meanwhile, extended its lead north of the 5,000 mark, adding 21.1 points, or 0.4%.

The CBOE Volatility Index (VIX - 12.71) shed 0.5 point, or 4.1%, and surrendered its short-term foothold north of 13.



5 Items on Our Radar Today:

  1. Sales of existing homes jumped to their highest level since September 2013 in March. Specifically, the National Association of Realtors said home resales surged 6.1% to an annual rate of 5.19 million units, exceeding economists' estimate for a rate of 5.03 million units. (Reuters)
  2. Ahead of tomorrow night's first-quarter earnings report, GOOGL said today it has thrown its hat into the wireless ring. Specifically, the tech titan unveiled a new domestic wireless service, dubbed Project Fi, that will cost $20 per month at its basic level, and requires subscribers to only pay for the data they use. (USA Today)
  3. Fast-food names were in focus today, with Yum! Brands, Inc. (NYSE:YUM) making a notable milestone in the wake of its quarterly results, and Chipotle Mexican Grill, Inc. (NYSE:CMG) slumping after it reported.
  4. How EMC Corporation (NYSE:EMC) and sister VMware, Inc. (NYSE:VMW) fared post-earnings.
  5. Schaeffer's Senior Quantitative Analyst Rocky White explored the significance of earnings season.





Crude oil closed lower today, as traders weighed a mixed domestic inventories report. Specifically, although stockpiles increased for a 15th consecutive week, output declined by more than expected. At session's end, crude for June delivery -- the new front-month contract -- was down 45 cents, or 0.8%, at $56.16 per barrel.

Gold headed south, as an upbeat reading on the housing market and a pop in the broader equities market lessened the metal's safe-haven appeal. By the close, June-dated gold was off $16.20, or 1.3%, at $1,186.90 per ounce.


Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released! 



Special Offers from Schaeffer's Trading Partners