Dow Bounces Back on Election Eve


Shutterstock photo

The Dow Jones Industrial Average (DJI) proved resilient today, bouncing back from an initial retreat to settle modestly higher. "The Institute for Supply Management's (ISM) services index for October came in slightly under expectations, but that didn't affect the market all that much, with stocks shaking off early losses to finish north of breakeven," said Schaeffer's Senior Equity Analyst Joe Bell. "Technology and basic materials stocks were among the top-performing sectors, and we also had a few earnings reports here and there. Mostly, though, participants are simply looking ahead to the big election tomorrow."

Chart of the Day : Schaeffer's Senior Options Strategist Tony Venosa, CMT, offers 7 reasons to hop on Home Depot ( HD ) .

Daily Game Plan : Schaeffer's Senior Trading Analyst Bryan Sapp weighs in on what appears to be a pre-election holding pattern .

And now, a look at the numbers...



Stocks started off on the wrong foot today, but the bulls won the coin toss in the final hour of trading. By the close, the Dow had added 19.3 points, or 0.2%, to end just a hair's breadth south of its 10-day moving average.

The S&P 500 Index (SPX) also battled back in afternoon action, tacking on 3 points, or 0.2%, while the Nasdaq Composite (COMP) advanced 17 points, or 0.6%, before halting just shy of the 3,000 mark.

The CBOE Market Volatility Index (VIX) extended Friday's advance, gaining 4% to finish north of its 200-day moving average.

Today's highlight : "The wait is practically over and the highly anticipated election is here," said Bell. "By tomorrow night, we should know who our next President will be. Political signs can be removed from yards, and campaign commercials can stop. That will make me a very happy man."

More of today's big stories:

And, in case you missed it ... Our own Bernie Schaeffer weighs in on the love affair with Treasury bonds .

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

Commodities markets:

Crude futures finished a wishy-washy session in the black today. With Hurricane Sandy -- and the majority of its power outages -- in the rearview mirror, expectations for demand were on the rise, which helped to overshadow a stronger greenback. However, uncertainty ahead of tomorrow's election kept black gold relatively range-bound. By the time the dust settled, crude for December delivery tacked on 79 cents, or 0.9%*, to finish at $85.65 per barrel.

Gold futures bounced back today, as traders sought safety ahead of the highly anticipated presidential election. Furthermore, bargain hunting likely contributed to the malleable metal's rebound, after the front-month contract touched a two-month low on Friday. Despite a strengthening dollar, December-dated gold added $8, or 0.5%, to end at $1,683.20 an ounce.

Levels to watch in trading...

  • Dow Jones Industrial Average (DJI - 13,112.44) - support at 11,500; resistance at 14,000
  • S&P 500 Index (SPX - 1,417.26) - support at 1,100; resistance at 1,500
  • Nasdaq Composite (COMP - 2,999.66) - support at 2,400; resistance at 3,400






*Editorial note: An earlier version was updated to reflect the correct percentage changes for oil and gold. No other numbers were impacted.

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 Nasdaq, Inc.

All Rights Reserved. Unauthorized reproduction of any SIR publication is strictly prohibited.

This article appears in: Investing , Options
More Headlines for: AMZN , BA , HD , JBLU , SBUX

More from Schaeffer's Investment Research


Schaeffer's Investment Research

Schaeffer's Investment Research

Market News
Follow on:

Find a Credit Card

Select a credit card product by:
Select an offer:
Data Provided by