Dow Jones Industrial Average Rallies 396; S&P Out of Correction

Stocks put a dent in their monthly deficit, though it was still the worst January since 2009. The Dow Jones Industrial Average (DJIA) enjoyed a triple-digit win, while the S&P 500 Index (SPX) managed to claw its way out of correction territory. An unexpected move by the Bank of Japan and well-received earnings for Microsoft Corporation (NASDAQ:MSFT) and Visa Inc (NYSE:V) helped divert traders' attention from a mixed batch of economic reports and disappointing tech earnings. Meanwhile, another day of upside for oil only stoked the bullish flames.

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

• The Apple Inc. (NASDAQ:AAPL) rumors that sent this stock skyrocketing.
• Is it time to buy this S&P 500 newcomer?
• The news that sent Axiall Corp (NYSE:AXLL) soaring 83%.
• Plus ... The economy stalls, consumer sentiment slips, and a big shake-up at Xerox Corp (NYSE:XRX).
  

The Dow Jones Industrial Average (DJIA - 16,466.30) spent the whole day in the green, settling with a 396.7-point, or 2.5%, gain. All 30 of the Dow's components gained ground, led by V's 7% pop. For the week, the DJI added 2.3% -- a second straight weekly victory -- but slumped 5.5% on the month.

The S&P 500 Index (SPX - 1,940.24) jumped 46.9 points, or 2.5%, while the Nasdaq Composite (COMP - 4,613.95) underperformed its peers with a 107.3-point, or 2.4%, advance. Week-over-week, the SPX and COMP added 1.6% and 0.3%, respectively. On a monthly basis, the SPX fell 5.2%, while the COMP plunged 8%.

The CBOE Volatility Index (VIX - 20.20), meanwhile, shed 2.2 points, or 9.9%, to close at its lowest level since Jan. 5. The market's "fear gauge" surrendered 9.6% on the week, but gained 10.9% on the month.

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5 Items on Our Radar Today:

1. The advance reading on gross domestic product (GDP) showed the U.S. economy grew at a 0.7% rate in the fourth quarter, as the dollar strengthened and demand for exports slowed. This arrived in line with economists' estimate, but was far short of the 2% GDP growth in the third quarter. (CNBC)

2. The Thomson Reuters/University of Michigan consumer sentiment index dropped to 92.0 from 92.6 in January. The index hit its highest post-recession peak of 98.1 one year ago. Meanwhile, the Chicago purchasing managers index (PMI) arrived at 55.6 this month -- its loftiest perch since last January -- signaling expansion in the region. (MarketWatch; CNBC)

3. XRX not only announced plans to split into two, but said Carl Icahn will now hold three seats on the board. The activist investor disclosed a stake in XRX last November.

4. While Merck & Co., Inc. (NYSE:MRK) was rising on news of a regulatory nod, this sector peer jumped on positive data for its diabetes drug.

5. Schaeffer's contributor Adam Warner offers his two cents on the best way to sell premium.

  
Data courtesy of Trade-Alert

Commodities:

Crude oil rose for a fourth straight day -- a feat not accomplished since April -- as the U.S. active rig count declined for a sixth consecutive week. By the close, crude for March delivery was up 40 cents, or 1.2%, at $33.62 per barrel. Crude advanced 4.4% for the week -- its second in a row -- but declined for a third straight month, down 9.2%.

A lackluster GDP reading helped send gold higher today, with the April-dated contract rising 30 cents to $1,116.40 per ounce. On the week, the malleable metal added 1.8%, while month-over-month, gold tacked on 5%. It was gold's best monthly showing since last January.