After swallowing heavy losses during the past two sessions, stocks cruised higher today as a wave of bargain-hunting swept the Street. The beaten-down energy sector helped lead the charge, thanks in part to an unexpectedly bullish note for oil-spill villain BP plc (BP). JPMorgan reiterated its "overweight" rating on the stock today, arguing that the Gulf Coast disaster has not materially changed BP's earnings outlook. Traders also considered an upbeat round of housing data, with the National Association of Realtors (NAR) reporting a 6% climb in pending home sales for April. But overall, "the rebound from key 1,050-level support on the S&P 500 Index seems well in place," with the broad-market bellwether ending today near its session highs.
The Dow Jones Industrial Average (DJIA – 10,249.54) settled on a robust gain of 225.5 points, or 2.3%, as all of its 30 components closed higher. Walt Disney and American Express racked up the healthiest blue-chip gains, with both stocks adding more than 4% by the time the closing bell sounded.
The Dow Jones Industrial Average (DJIA – 10,249.54) settled on a robust gain of 225.5 points, or 2.3%, as all of its 30 components closed higher. Walt Disney and American Express racked up the healthiest blue-chip gains, with both stocks adding more than 4% by the time the closing bell sounded.
Thanks to today's surge, the Dow finished above its 10-day moving average for the first time since May 12.
The S&P 500 Index (SPX – 1,098.38) enjoyed a similarly positive day, ending with a gain of 27.7 points, or 2.6%. The SPX settled atop its 10-day moving average for only the second time since May 12, although Sparks notes that "1,100 looms as resistance overhead." Finally, the Nasdaq Composite (COMP – 2,281.07) climbed along with its peers, tacking on 58.7 points, or 2.6%. The COMP also conquered its 10-day moving average, and is now gearing up to challenge the 2,300 region.
Crude settles higher; home sales boosterCrude futures turned in a positive session today, buoyed by the NAR's upbeat housing data and a solidly bullish mood in the equities market. However, ahead of tomorrow's holiday-delayed inventory reports, black gold finished well off its session highs. July-dated crude oil ended the day up 28 cents, or 0.4%, at $72.86 per barrel, after earlier peaking at $73.93.
Gold's lower, snapping six-day winning streakConversely, gold futures ended the day on a modest deficit, as the malleable metal's safe-haven status failed to attract buyers on an upbeat day in the stock market. After finishing at a two-week high on Tuesday, gold for August delivery swallowed a loss of $4.30, or 0.4%, at $1,222.60 per ounce.
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