Jobs Data Corrals the Bulls Back to Wall Street

Steven Bobson, Europe & Americas Editor
September 28, 2012 /

“The indices took off to the upside just before noon today, after Spain announced its 2013 budget,” remarked Schaeffer’s Senior Options Strategist Tony Venosa. “The best thing about today was the market’s ability to hold its gains despite the weaker-than-expected durable goods data and second-quarter gross domestic product (GDP) number.” In fact, after battling a lull in early trading, the Dow Jones Industrial Average (DJI) took off on a triple-point rally, securing its first up day in the last five sessions.

The Dow Jones Industrial Average (DJI – 13,485.97) was up more than 109 points at its session high of 13,522.83, and held most of this lead throughout the day. By the time the dust cleared, the Dow notched a 72.5-point, or 0.5%, rise. Twenty-three of its 30 blue chips bounced into positive territory today, with General Electric ( GE ) leading the way with a gain of 2.9%. Wal-Mart Stores, Inc. (WMT) paced the declining issues with a 0.3% loss. Meanwhile, The Procter & Gamble Company (PG) parked at breakeven.

The S&P 500 Index (SPX – 1,447.15) and Nasdaq Composite (COMP – 3,136.60) also enjoyed positive returns today, with both indexes finding perches back atop their 20-day trendlines. The SPX pierced the 1,450 level in late-day trading, but couldn’t solidify a win above this recent level of support. However, the broad-market index still tacked on 13.8 points, or roughly 1%, by the closing bell. Racking up the best performance of its fellow indexes, the COMP reclaimed its seat above 3,100, surging 42.9 points, or 1.4%, on the day.

The CBOE Market Volatility Index (VIX – 14.84) retreated back below the 15 mark and its 80-day moving average, burning off nearly 2 points, or 11.7%.

Oil futures turned higher today. Supply concerns amid tensions between Iran and the West, as well as encouraging jobs data, supported the commodity. By the close, crude for November delivery rose $1.87, or 2.1%, to settle at $91.85 per barrel.

After suffering a two-week low in yesterday’s action , gold futures did a 180 and rocketed to their highest price since Feb. 28, as bargain-hunting speculators scooped up the commodity. Plus, gold prices in euros hit record highs while economic problems continued to cloud the euro zone. Against this backdrop, December-dated gold jumped $26.90, or 1.5%, to close at $1,780.50 an ounce.

 

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