The Dow Jones today gained 28 points after reversing losses from earlier in the session, and the S&P 500 hit a new closing record high.
What turned stocks around? Growing optimism about a Greece-EU deal on news the beleaguered country will seek an extension for its debt obligations.
Today our Tech Specialist Michael Robinson appeared on FOX Business' "Varney & Co." to discuss whether Apple Inc. (Nasdaq: AAPL) stock can hit $170 a share, which would give the company a market cap of $1 trillion...
Today's Scorecard:
Dow: 18,047.58, +28.23, +0.15%
S&P 500: 2,100.34, +3.35, +0.16%
Nasdaq: 4,899.27, +5.43, +0.11%
The S&P 500 Volatility Index (VIX), the market's fear gauge, jumped 8.17% on the day.
What Moved the Markets Today: The markets were up today on growing optimism across the Atlantic. Prospects that Greece may reach an agreement on its debts with the European Union pushed stocks higher. Greece is expected to request a six-month extension to its loan program on Wednesday. Shares of the National Bank of Greece (NYSE ADR: NBG) rose 1.24% on the day. Brent crude oil prices initially fell below $61 a barrel, as concerns in other commodity markets are affecting the sector. However, new concerns about supply in the Middle East have emerged, and investors anticipate a slowdown in U.S. production due to lower WTI prices. Brent crude and WTI prices both recovered in the afternoon.
Now, check out the other top market stories - plus get our new profit tip for investors:
Droning On: Shares of Amazon.com Inc. (Nasdaq: AMZN) slipped 1.7% this afternoon on news that proposed FAA rules could kill the retailer's drone-delivery program. The proposed rules would prohibit drone operators from being out of sight of the vehicles, a decision that would cripple any cross-city operations for a delivery company. The news also affects Google Inc. (Nasdaq: GOOG, GOOGL), which is conducting its own drone program. Shares of Google slipped more than 1% on the day.
Locked and Loaded: Shares of GoPro Inc. (Nasdaq: GPRO) surged more than 12% this afternoon, the same day its IPO lockup expiration occurred. The camera manufacturer has seen increased interest since it declined more than 50% from its high of $98.
Health and Wellness: In a surprise announcement, Nestle USA announced plans to remove artificial flavors and colors from its candy bars and other chocolate products in the United States. The news comes as part of a continued trend toward increased demand for healthier food products. Although Nestle has a better reputation that many of its competitors in terms of its commitment to health and wellness, this is the first major manufacturer to announce such a change to products. Shares of Swiss-based parent Nestlé SA (OTCMKTS ADR: NSRGY) were up nearly 15% on the day. The decision will likely put greater pressure on competitors Mars Inc., The Coca-Cola Co. (NYSE: KO), PepsiCo Inc. (NYSE: PEP), and Mondelez International Inc. (Nasdaq: MDLZ) to make similar changes.
Stepping Down: Following the sudden announcement that Transocean Ltd. (NYSE: RIG) CEO Steven Newman had stepped down, another high-profile executive has announced his exit as well. Shares of Starwood Hotels & Resorts Worldwide Inc. (NYSE: HOT) were up nearly 3% this afternoon on news its CEO Frits van Paasschen has resigned by "mutual agreement with the board."
An Apple a Day: Shares of Apple Inc. (Nasdaq: AAPL) hit a new intraday record Tuesday as the tech giant received a boost of optimism over its secret Project Titan. According to reports, CEO Tim Cook formally approved a project to create its own self-driving electric automobile. The tech giant reportedly has several hundred employees working on the project. Even at these record stock levels, Money Morning Chief Investment Strategist Keith Fitz-Gerald believes Apple stock is a "Strong Buy" right now. Watch his appearance yesterday afternoon on FOX Business' "Varney & Co" here.
Money Morning Tip of the Day: The only thing standing between your portfolio and catastrophic loss is your own caution and proper risk management.
Today's tip comes from Money Morning Chief Investment Strategist Keith Fitz-Gerald:
Risk management may not be the most exciting part of investing. But it is the most important.
And a tool called "position sizing" stands out above all others as the most powerful, and not just for cutting risk either, but for boosting your profits, too.
The concept is simple. Controlling the amount of money you place in each trade can lead to bigger profits and mitigate the risk of a catastrophic loss.
Position sizing is the science of cutting risk in your portfolio down to the bone. It answers the question "How big should I make my position for any one trade?"
Many investors think they have this covered with trailing stops that take them out of an investment when some predetermined limit is hit.
Position sizing is different. It's about determining how much of something you can buy for maximum profits, or even if you can afford to buy in the first place.
Understanding position sizing will put you miles ahead of other investors who spend all their time wondering what to buy while ignoring the critical question of how much to buy.