Bears Win the Session as Earnings Season Trudges On

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The Dow Jones Industrial Average (DJI) marked its second loss in a row today, and its lowest close since the beginning of September. "The market opened slightly up, but struggled to gain its footing all day and slid into the red during late-day trading," said Schaeffer's Senior Equity Analyst Joe Bell. "We had another day of mixed earnings reports, with Facebook (FB), Netflix (NFLX), and Juniper Networks (JNPR) all grabbing headlines. The Federal Reserve issued a policy statement and new home sales data was also released, but neither did much to sway to the market."

Click through to see what else was on our radar today:

And now, a look at the numbers...

CLOSING SUMMARY - INDICES

CLOSING SUMMARY - NYSE AND NASDAQ

The Dow Jones Industrial Average (DJI - 13,077.34) was up more than 52 points at its session peak of 13,155.21, but retreated roughly 39 points to an intraday low of 13,063.63 in the last hour of trading. By the close, the Dow was down 25.2 points, or 0.2%, to mark its first finish south of 13,100 since Sept. 5. Eight of the 30 blue chips enjoyed wins today, with United Technologies Corporation's ( UTX ) 1.1% gain topping the list. Conversely, the parade of underperformers was led by Cisco Systems, Inc.'s ( CSCO ) 3.5% deficit.

The S&P 500 Index (SPX - 1,408.75) and Nasdaq Composite (COMP - 2,981.70) also ended in the red today, after seeing both sides of breakeven throughout the session. The SPX dropped under its 80-day moving average for the first time since July 25, settling with a loss of 4.4 points, or 0.3%. Meanwhile, the COMP marked a second straight close below 3,000 today, but found support at its 200-day trendline, trimming off 8.8 points, or 0.3%.

The CBOE Market Volatility Index (VIX - 18.33) slipped 0.5 point, or 2.7%, but maintained its perch above the 18 mark and its 200-day moving average.

Today's highlight : "Monster Beverage Corp ( MNST ) finally responded to the recent media firestorm about the safety of drinking their beverages," noted Bell. "The company emphatically stated that their energy drinks do NOT kill people. For those energy drinkers who are still alive, this must be very good news."

Noteworthy stats at the close:

  • The equity put/call volume ratio across all 10 options exchanges ended at 0.97, with roughly 6.45 million calls and 6.28 million puts traded.
  • The put/call volume ratio on the iPath S&P 500 VIX Short-Term Futures ETN (NYSEARCA:VXX - 37.47) checked in at 0.83, with calls outpacing puts.
  • The New York Stock Exchange (NYSE) showed an advance/decline ratio of 0.80, as the number of downward movers eclipsed upwardly tilted stocks. In similar fashion, the advance/decline ratio on the Nasdaq stood at 0.78.

Explore our Trading Floor Blog and Daily Options Blog for coverage on today's big stories, including:

And, in case you missed it ... Most-Active Options Update : Facebook Inc (FB), Intel Corporation (INTC), and General Electric Company (GE).

For today's activity in commodities, options, and more, head to page 2.

Oil futures continued on their recent slide, taking a hit on a bigger-than-expected climb in domestic stockpiles, according to the Energy Information Administration (EIA). With overabundance of supplies and lagging global demand, crude for December delivery fell 94 cents, or 1.1%, to settle at $85.73 a barrel. This marked the lowest close for the commodity since July 11.

Though gold futures are higher in electronic trading following the Fed's decision to stand pat on its monetary policy, the commodity was lower on the day on global economic concerns and a stronger greenback. December-dated gold fell $7.80, or 0.5%, to close at $1,701.60 an ounce.

Levels to watch in trading...

  • Dow Jones Industrial Average (DJI - 13,077.34) - support at 11,500; resistance at 14,000
  • S&P 500 Index (SPX - 1,408.75) - support at 1,100; resistance at 1,500
  • Nasdaq Composite (COMP - 2,981.70) - support at 2,400; resistance at 3,400

OUTPERFORMING AND UNDERPERFORMING SECTORS

STOCKS - MOVERS

STOCKS - EARNINGS

STOCKS - NOTABLE CALL ACTIVITY

STOCKS - NOTABLE PUT ACTIVITY

SCHAEFFER'S MARKET POSTURE

At the end of every market day, the staff at Schaeffer's Investment Research reviews the trading day in detail, covering major events and key market developments. Don't miss this critical, timely and insightful report. If you enjoyed today's edition of Market Recap, sign up here for free daily delivery straight to your inbox.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

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This article appears in: Investing , Options

Referenced Stocks: CSCO , FFIV , JPM , MNST , UTX

Schaeffer's Investment Research

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