Dow Fades 128 Points as Sellers Take Hold of Wall Street

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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...

CLOSING SUMMARY - INDICES

CLOSING SUMMARY - NYSE AND NASDAQ


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

OUTPERFORMING AND UNDERPERFORMING SECTORS

STOCKS - MOVERS

STOCKS - EARNINGS

STOCKS - NOTABLE CALL ACTIVITY

STOCKS - NOTABLE PUT ACTIVITY

SCHAEFFER'S MARKET POSTURE

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 The NASDAQ OMX Group, Inc.

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


This article appears in: Investing , Options

Referenced Stocks: AA , ATVI , FB , P , SIRI

Schaeffer's Investment Research

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