"In a rare move, blue chips took the lead today," observed
Schaeffer's Senior Technical Strategist Ryan Detrick, CMT. After
two days of triple-digit gains, the
Dow Jones Industrial Average (DJI)
made it three in a row, closing at its intraday high after spending
the entire session in the green. "September is off to its best
start since 2010, and traders are anxiously awaiting next week's
Fed decision on interest rates and more importantly, what they will
do about the bond-buying program. Do they taper? By how much? These
questions could lead to some volatility and skittishness over the
next few days."
Continue reading for more on today's market, including
- What sentiment indicators Schaeffer's Senior Trading Analyst
Bryan Sapp is watching
"in the short term,"
- Schaeffer's contributor Adam Warner weighs in on the
likelihood of a
for the iPath S&P 500 VIX Short-Term Futures ETN
Wall Street reacted
to the new product offerings from Apple Inc. (
President Obama opts to pursue alternatives to military action,
Verizon Communications (
) makes history, and two tech names fall in sympathy with
Dow Jones Industrial Average (DJI - 15,326.60)
posted another triple-digit gain and finished at its intraday peak,
up 135.5 points, or 0.9%. The 26 rallying Dow names were paced by
International Business Machines (
), which gained 2.2% on the day. JPMorgan Chase (
) and Intel (
) each logged a 0.8% loss, and AT&T (T) and Hewlett-Packard
(HPQ) were unchanged.
S&P 500 Index (SPX - 1,689.13)
spent much of the morning in negative territory, but eked out a
modest rally of 5.1 points, or 0.3%, keeping its winning streak
alive at seven sessions. The
Nasdaq Composite (COMP - 3,725.01)
, conversely, was dragged into the red by Apple and other names,
closing with a loss of 4 points, or 0.1%.
CBOE Market Volatility Index (VIX - 13.82)
continued its decline, ending the day beneath its 50-day moving
average (and south of 14) for the first time since Aug. 23. By the
time the dust settled, the VIX had surrendered 0.7 point, or
A Trader's Take
"The story stock of the day was Apple Inc. (
) -- it had a big down day and held back the Nasdaq," noted
Detrick. "In the end, this was a perfect example of how sentiment
works. Coming into the hyped iPhone event, calls were very active
and hopes were high for the stock. Well, the prices of their phones
didn't excite the masses, and they didn't sign an expected deal
with China Mobile. Those lofty expectations set a high bar and sure
enough, the 'bad news' led to heavy selling."
3 Things to Know About Today's Market
- Verizon Communications (
) priced its well-publicized bond offering at $49 billion, making
largest offering of corporate debt
on record. The telecom giant plans to use the proceeds to help
acquire sole control of its wireless division.
- In a speech to the nation last night, President Barack Obama
outlined plans to postpone a congressional vote on launching
military action against Syria. Instead, the U.S. will
work toward a Russian-led plan
to eliminate Syria's chemical weapon supply.
(The New York Times)
- Wholesale inventories
rose by 0.1%
in July, noted the Commerce Department. Results were shy of the
0.3% increase expected by economists, but marked the first gain
in four months.
5 Stocks We Were Watching Today
- Put traders descended upon
options pits, as the stock dropped in sympathy with Apple.
- Also falling along with AAPL was
Cirrus Logic (CRUS)
, which saw its short-term put options in high demand.
Lululemon Athletica (LULU)
has seen a spike in volatility -- and options volume -- ahead of
its quarterly earnings report.
- Short-term put buying was notable in
today, and may have been shareholders hedging their bets.
- An options bull kept the faith on
Linn Energy (LINE)
, as news emerged regarding the company's buyout proposal for
Berry Petroleum (BRY).
For a look at today's options movers and commodities
activity, head to page 2.
After two days in the red, crude futures moved higher today, as
oil watchers weighed continued tension regarding Syria against a
smaller-than-projected pullback in weekly crude stockpiles. By the
close, October-dated crude had gained 17 cents, or 0.2%, to settle
at $107.56 per barrel.
Gold, however, ended fractionally lower on the day, amid
continued speculation about what next week's Federal Reserve
meeting will mean for the central bank's current bond-buying
efforts. December-dated gold futures gave back 20 cents to close at
$1,363.80 an ounce.
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