"The market started off in the red, but strengthened during
early afternoon trading, as news came out that the European Central
Bank (ECB) is considering setting a yield band target as part of
the new bond-buying program," noted Schaeffer's Senior Equities
Analyst Joe Bell. "The real push higher came after a letter from
Fed Chairman Bernanke to a state representative surfaced, with Ben
saying there was room for further action by the central bank." The
Dow Jones Industrial Average (DJI)
parked in positive territory for the first session out of the last
five, but still saw red on the week.
Keep reading to see what else was on our radar today:
And now, a look at the numbers...
The
Dow Jones Industrial Average
(DJI - 13,157.97)
fought off an early deficit to make its way 100.5 points, or 0.8%,
higher for the day. At its session peak, the blue-chip barometer
was up 118 points. All but five of the Dow's 30 components enjoyed
wins today, as Verizon Communications Inc. (
VZ
) led the outperforming majority with a 2.2% advance. Intel
Corporation's (
INTC
) 0.5% pullback paced the four losing issues, while Alcoa Inc. (
AA
) stayed at breakeven. The Dow dropped 0.9% on the week.
Likewise, the
S&P 500 Index
(SPX - 1,411.13)
and
Nasdaq Composite (COMP - 3,069.79)
turned higher for the day. The SPX increased by 9.1 points, or
0.7%, while the COMP leapt 16.4 points, or 0.6%. Over the past five
sessions, the SPX faltered 0.5%, and the COMP drifted 0.2%
lower.
The
CBOE Market Volatility Index (VIX - 15.18)
ended its four-day win streak today, and fell 4.9% to close at its
intraday low. However, the market's fear gauge notched a weekly
return of more than 12.8%.
Today's highlight
: "The Dow ended its four-day losing streak, as the market shook
off some of its recent lackluster performance," said Bell. "The
durable goods orders came in better than expected as well, mostly
led by gains in transportation orders."
Turning to today's major market stories...
For today's activity in commodities, options, and more, head
to page 2.
Crude futures racked up a second straight loss today. Investors
stayed on the sidelines, despite a storm in the Gulf of Mexico that
could prove detrimental to supply and production operations there.
By the close, October-dated oil inched lower by 12 cents, or 0.1%,
to end at $96.15 a barrel. For the week, black gold eked out a 0.1%
gain.
Conversely, gold futures ticked higher for a second day in a
row, after hopes for global economic stimulus were lifted on the
ECB's new bond-buying plan and optimism that the Fed will take
action soon. Gold for December delivery added 10 cents, to settle
at $1,672.90 an ounce. The malleable metal enjoyed a 3.3% rise on
the week.
Levels to watch in trading...
-
Dow Jones Industrial Average (DJI - 13,157.97)
- support at 11,500; resistance at 14,000
-
S&P 500 Index (SPX - 1,411.13)
- support at 1,100; resistance at 1,500
-
Nasdaq Composite (COMP - 3,069.79)
- support at 2,400; resistance at 3,400
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
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