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.

150422recap1

150422recap2

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.

150422recap5

150422recap6

150422recap7

Commodities:

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.

 

If you are not making money with options, you aren’t buying options like this…

There is no options strategy that more perfectly approaches trading the fastest moving and most volatile stocks available in the marketplace than this one. In fact, there is no strategy that better utilizes put options for optimal returns and a real trading edge over other traders in the exact same market. New options traders fail out at an incredible rate without proper trade research, execution timing, and option picking. Capitalize on Schaeffer’s 100+ years of options trading excellence with the most coveted product launch in company history. Don't waste another second... join us right now before the next round of trades are released!

Schaeffer's Investment Research Master Portfolio Trial
 


 


 
Special Offers from Schaeffer's Trading Partners