"We came in with Europe down across the board after some
disappointing economic data from various countries ... but in the
end, you have to be impressed with the U.S. market's resiliency
here," said Schaeffer's Senior Technical Strategist Ryan Detrick,
CMT, of today's trading, which saw the
Dow Jones Industrial Average (DJI)
grind out a minor loss, dropping just 9 points.
Continue reading for more on today's market, including
- A break-even day on the markets, some really expensive
ketchup, and how option traders reacted to the new airline merger
involving US Airways (
) and American Airlines.
Dow Jones Industrial Average (DJI)
tread water for most of the day, slipping in and out of winning
territory before finally finishing at 13,973.39, down nearly 10
points, or 0.1%. Alcoa Inc. (
) led the 14 advancers on the 30-member Dow, jumping 2.1%. The 21
decliners were led by Coca-Cola (
), which fell 1% and continues to drop after this week's
disappointing earnings report.
S&P 500 Index (SPX)
gained slightly on the day, picking up more than 1 point, or nearly
0.1%, to close at 1,521.38. The
Nasdaq Composite (COMP)
also won on the day, finishing at 3,198.66, up nearly 2 points, or
CBOE Volatility Index (VIX)
finished at 12.66, down 0.3 point, or 2.5%.
A Trader's Take
"The market has had all the reasons in the world to sell off the
past few weeks, yet it hasn't -- you have to like seeing that
action," Detrick said. "It was another day of more new highs from
small and mid-caps ... One other big-time positive is the recent
big upward trend in mergers and acquisitions."
3 Things to Know About Today's Market
- Warren Buffett's Berkshire Hathaway (NYSE:BRK.A) today
announced it was
buying the venerable food maker
H.J. Heinz Company (HNZ) for $28 billion.
- Beer maker Anheuser-Busch InBev (BUD) today
altered the terms
of its proposed $20 billion merger with Grupo Modelo to try and
satisfy U.S. antitrust regulators who have sued to oppose the
deal on competitive concerns.
- Jobless claims
dropped by 27,000
as compared to last week's figure, soundly beating analysts'
estimates -- and continuing claims now stand at a five-and-a-half
5 Stocks We Were Watching Today
merger between US Airways (
) and the parent of American Airlines drew
that LCC's stock wouldn't fall.
- Staying on the airline theme, one trader executed a
bull call spread
on Delta Air Lines (DAL).
- Juniper Networks (JNPR) was the target of
of short-term calls, with traders looking to cash in at
- As soon as Crocs (CROX) announced its next earnings date,
bearish put traders
, hoping for a second consecutive earnings miss.
- AOL (AOL) saw its stock pull back 2% yesterday, and
short-term bearish investors
looked to cash in by the end of the week.
For a look at today's options movers and commodities
activity, head to page 2.
Oil futures carved out a minor win Thursday despite a gain by
the U.S. dollar. Crude for March delivery added 30 cents, or 0.3%,
to close at $97.31 per barrel.
But the dollar's rise did push gold futures down, as April-dated
gold fell $9.60, or 0.6%, to end at $1,635.50 per ounce -- its
lowest daily finish since Aug. 20.
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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