Make it three losses in a row for the
Dow Jones Industrial Average (DJI)
, which was off more than 145 points at its session low, and
suffered a second straight triple-point pullback. "The broad market
started off flat, but sellers slowly asserted their control," noted
Schaeffer's Senior Equities Analyst Joe Bell. "
Alcoa Inc. (
AA
)
kicked off the third-quarter earnings season with a lackluster
report, sending the shares down about 4%. While the company beat on
earnings and revenues, it lowered its forecast for aluminum demand
going forward. Consumer staples took a leadership role, as
investors continued to reduce positions and yesterday's sell-off
continued."
Keep reading to see what else was on our radar today:
And now, a look at the numbers...
Dow Jones Industrial Average (DJI - 13,344.97)
Alcoa Inc.'s (
AA
)
The
S&P 500 Index (SPX - 1,432.56)
and
Nasdaq Composite (COMP - 3,051.78)
prolonged their recent downtrends as well. The SPX retreated 8.9
points, or 0.6%, to end at its lowest level in a month. The COMP,
meanwhile, burned off 13.2 points, or 0.4%, dipping below its
60-day trendline for the first time since July 25.
The
CBOE Market Volatility Index
(VIX - 16.29)
remained very near breakeven today, inching lower by 0.08 point, or
0.5%. Once again, the VIX ran into resistance at its 80-day moving
average.
Today's highlight
: "The Federal Reserve released its Beige Book, a survey that
showed nearly all regions of the United States are reporting
stronger housing markets," said Bell. "The earnings season is also
underway, with a few important bank reports due out later this
week."
Turning to today's major market stories...
For today's activity in commodities, options, and more, head
to page 2.
Oil futures headed south today, just one session after the
commodity soared more than 3%. Speculators appear concerned with
upcoming reports that could indicate big stockpiles and lagging
demand. Due to the Columbus Day holiday, the Energy Information
Administration (EIA) will delay its domestic inventories data until
Thursday. By the close, November crude fell $1.14, or 1.2%, to
$91.25 a barrel.
Following three consecutive down days, gold futures nudged
higher today, as the dollar drifted modestly lower amid global
economic anxieties. Gold for December delivery rose 10 cents to
$1,765.10 an ounce.
Levels to watch in trading...
-
Dow Jones Industrial Average (DJI - 13,344.97)
- support at 11,500; resistance at 14,000
-
S&P 500 Index (SPX - 1,432.56)
- support at 1,100; resistance at 1,500
-
Nasdaq Composite (COMP - 3,051.78)
- support at 2,400; resistance at 3,400
At the end of every market day, the staff at Schaeffer's
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