"European markets were mostly lower coming into the open this
morning, and that certainly put downward pressure on our markets,"
stated Schaeffer's Senior Equities Analyst Joe Bell. "With that
being said, the weaker-than-expected new home sales data really hit
the homebuilders hard, and most sectors ended in the red." In fact,
the
Dow Jones Industrial Average (DJI)
was off roughly 50 points at its session bottom, but maintained its
foothold atop the 13,400 area.
Keep reading to see what else was on our radar today:
And now, a look at the numbers...
The
Dow Jones Industrial Average (DJI - 13,413.51)
fell to an intraday low of 13,406.91, but found its footing not too
far from this level by the closing bell. On the day, the blue-chip
barometer ripped back 44 points, or 0.3%, to end at a two-week
closing low. Of the Dow's 30 components, American Express Company's
(
AXP
) 1.7% decline paced the 23 laggards, while Hewlett-Packard Company
(
HPQ
) led the seven outperforming issues with a 2.4% rise.
The
S&P 500 Index (SPX - 1,433.32)
and
Nasdaq Composite (COMP - 3,093.70)
spun into negative territory as well today. The SPX fell 8.3
points, or 0.6%, closing below its 20-day moving average for the
first time since Sept. 5, and extending its losing streak to five
sessions. Meanwhile, the COMP experienced the worst loss of its
fellow indexes, diving 24 points, or almost 0.8%, to find its first
daily settlement below 3,100 since Sept. 5.
The
CBOE Market Volatility Index
(VIX - 16.81)
jumped to a session peak of 17.08 -- its highest point since Sept.
6 -- before backing down to a 1.4-point, or 8.9%, victory on the
day. The VIX is now testing resistance at its 80-day trendline.
Today's highlight
: "The flow away from consumer discretionary sectors continued
today," pointed out Bell. "We also saw technology stocks lag,
specifically semiconductor stocks. With the market overbought after
such a strong rally, the pullback from multi-year highs continued
and there was a general flight away from risk."
Turning to today's major market stories...
For today's activity in commodities, options, and more, head
to page 2.
Crude futures ended yet another session in the red, as a
strengthening greenback overshadowed a surprise drop in domestic
stockpiles. Oil inventories fell by 2.45 million to 365.2 million
barrels last week; economists were anticipating a gain of 1.9
million barrels. Against this backdrop, November-dated crude
futures shed $1.39, or 1.5%, to settle at $89.98 per barrel --
black gold's lowest finish since August 2.
Gold futures ended at a two-week low, pressured by a stronger
dollar and global economic headwinds. However, strikes in South
Africa's gold mines exacerbated supply concerns, helping to limit
the malleable metal's losses. By the time the dust settled, gold
for December delivery gave up $12.80, or 0.7%, to finish at
$1,753.60 an ounce.
Levels to watch in trading...
-
Dow Jones Industrial Average (DJI - 13,413.51)
- support at 11,500; resistance at 14,000
-
S&P 500 Index (SPX - 1,433.32)
- support at 1,100; resistance at 1,500
-
Nasdaq Composite (COMP - 3,093.70)
- 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
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.