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Dow Jones Industrial Average Ends the Week On a High Note

Did the 'Fear Gauge' Just Flash a Bullish Signal?

Jul 10, 2015 at 4:30 PM
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volatile week of trading ended with a bang, with the Dow Jones Industrial Average (DJIA) notching a triple-digit win. The bullish stars seemingly aligned on Wall Street, with traders digesting another big rally in China, a last-minute bailout proposal from Greece, and a midday speech from Fed Chair Janet Yellen. The Dow's counterparts also enjoyed impressive gains, with the S&P 500 Index (SPX) moving back above its year-to-date breakeven mark and the Nasdaq Composite (COMP) coming oh-so-close to settling north of 5,000. Next week could see more big market moves, with second-quarter earnings season kicking into high gear, July options expiration underway, and Yellen back at it on Capitol Hill.

 

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

The Dow Jones Industrial Average (DJIA - 17,760.41) was up nearly 250 points at its intraday peak, before closing with a 211.8-point, or 1.2%, gain. All 30 of the DJIA's components gained ground, led by Apple Inc.'s (NASDAQ:AAPL) 2.7% pop. Week-over-week, the Dow added 0.2%.

The S&P 500 Index (SPX - 2,076.62) settled up 25.3 points, or 1.2% -- and moved back above its 10-month moving average. The Nasdaq Composite (COMP - 4,997.70), meanwhile, danced above 5,000 in intraday action, eventually closing 75.3 points, or 1.5%, higher. For the week, the SPX finished fractionally lower, while the COMP gave back 0.2%.

 

The CBOE Volatility Index (VIX - 16.83) fell 3.1 points, or 15.7%, and pared its weekly advance to 0.2%.

 

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5 Items on Our Radar Today:

  1. Federal Reserve Chair Janet Yellen said the central bank should begin raising interest rates at a gradual pace later this year. However, she made sure to emphasize "that the course of the economy and inflation remains highly uncertain, and unanticipated developments could delay or accelerate this first step." (Bloomberg)
  2. Greece submitted a new bailout deal to its creditors Thursday evening, which includes proposals on pension reforms and tax hikes. Eurozone leaders are expected to vote on the deal by Sunday. (The Washington Post)
  3. FB is reportedly looking to expand its presence in the video market. The news sent the stock barreling higher, most likely to the delight of short-term option traders.
  4. Optimism over a possible debt deal for Greece had a positive impact on this 3 shipping stocks.
  5. Eleventh-hour option bears set their sights on this struggling drugmaker.

 

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Commodities:

 

Crude oil lost ground today, after data showed a modest rise in weekly rig counts. At the close, August-dated crude was down 4 cents at $52.74 per barrel. For the week, crude lost 7.4%.

 

Gold futures erased early gains after Fed Chair Janet Yellen reiterated the central bank's intention to raise interest rates later this year. By session's end, gold for August delivery was off $1.30, or 0.1%, at $1,157.90 per ounce. Week-over-week, the malleable metal gave back 0.5% -- its third straight weekly drop.

 

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