CLOSING WRAP-UP, Jan. 31
Email This Article
Print This Article
SubscribeMOST POPULAR ARTICLES
- Kaeppel's Corner: Twisted VIXter
- Closing Wrap-Up, July 29
- Morning Watch, July 30
- Market Trends: Platinum Probability Bands
- Economic Watchdog, July 29
- Midday Action: July 29
- Morning Watch, July 29
- Growth Stock Swing Option: July 28, 2010
- Closing Wrap-Up, July 30
- Real-World Trading: Using Calendar Spreads in Sideways Markets, VII
- Real-World Trading: Using Calendar Spreads in Sideways Markets, VII
- Kaeppel's Corner: Twisted VIXter
- Real-World Trading: Using Calendar Spreads in Sideways Markets, Part VI
- Real-World Trading: Using Calendar Spreads in Sideways Markets, Part V
- Fundamental Focus: Insuring Your Portfolio
- Trading Calendar Spreads with Options
- REAL-WORLD TRADING: Five-Minute Success Formula
- Midday Action: July 30
- AU Editorial: Money and Holidays
- Hot Shots, July 30: Straddling a Breakout Performance from Within
- Economic Watchdog, July 29
- Market Trends: Platinum Probability Bands
- Midday Action: July 29
- Growth Stock Swing Option: July 28, 2010
- AU Market Review: Market Action
- Midday Action: July 28
- Real-World Trading: Using Calendar Spreads in Sideways Markets, VII
SPONSORED LINKS
January 31, 2007
Stocks see solid gains Wednesday, mostly following the FOMC statement. The Dow ($INDU) ended the session with a gain of 98.38 points to 12,621.69. The S&P 500 ($SPX) added 9.42 points to 1,438.24. The NASDAQ ($COMPQ) tacked on 15.29 points to close at 2,463.93. Volume was strong on the session with the NYSE trading 1.73 billion shares and the Naz turning over 2.23 billion shares. Market breadth was positive by a 22-to-11 and 17-to-13 ratio on the Big Board and Naz respectively.
Earnings and the economy were the focus Wednesday, culminating in the FOMC statement in the afternoon. The advanced reading for fourth quarter GDP got things off to a good start when growth accelerated 3.5 percent. This was well above third quarter growth of just 2.0 percent and exceeded analyst expectations of 2.0 percent. The fact that inflation pressures eased also helped stocks with the core deflator for PCEs coming in at 2.1 percent. Yes, this is still a bit above the Fed comfort level at 2.0 percent, but inflation pressures are easing.
The FOMC statement at 2:15 ET was the real driver for stocks Wednesday. The committee left rates unchanged, as expected, but it was the minor changes in the statement that were viewed bullish. The statement noted that the economy continues to firm with the housing market stabilizing. At the same time, the Fed did state that inflation pressures are easing and should continue to do so over time. Though the committee did say that further rate hikes could be necessary, it all depends on future incoming data.
Earnings news also benefited the major market indices with Boeing (BA) providing nearly 30 points for the Dow. BA shares added 4.14 percent on the session after the aerospace giant flew past expectations. The company announced that earnings more than doubled in the fourth quarter on a 26 percent rise in revenues. At the same time, BA raised its guidance for 2007.
Crude prices were higher once again Wednesday, helping lift oil related stocks. Weekly inventory data showed that crude reserves rose by 2.7 million barrels. However, worries about production cuts taking place starting Thursday pushed the commodity higher by 2.1 percent to close above $58 a barrel.
Tomorrow’s session will also be full of economic reports and earnings data. This will include Google’s (GOOG) release that occurred after the bell today. The personal income report and the ISM Index will also be released Thursday and these reports could have an impact on trading.
Jody Osborne
Senior Staff Writer & Options Strategist
Optionetics.com ~ Your Options Education Site
Visit Jody's Forum
© Copyright 1995-2010 Optionetics. All rights reserved. This material is for personal use only. Republication and re-dissemination, including posting to newsgroups, is expressly prohibited without the prior written consent of Optionetics. Optionetics is a registered trademark of Optionetics, Inc.