"There was quite a bit of economic data released today, and most
of it relayed the message of modest growth," observed Schaeffer's
Senior Equity Analyst Joe Bell, CMT. "Retail sales were slightly
worse than expected, and the producer price index signaled a little
bit of inflation. The markets generally reacted favorably, as the
strong momentum continued into the end of the week." As a result,
Dow Jones Industrial Average (DJI)
finished firmly in positive territory.
Continue reading for more on today's market, including
- Schaeffer's Senior Trading Analyst Bryan Sapp explains why
he's looking for
"some big volatility"
at the end of next week, which also coincides with September
- Despite this morning's price-target hike,
bearish option traders
-- or possibly anxious shareholders -- zeroed in on Facebook
) front-month series of puts.
- The latest edition of
Option Idea of the Week
offers up a bullish trading idea on an outperforming ETF
surrounded by heavy skepticism.
Twitter filed for an IPO, consumer sentiment waned in early
September, and Apple (
) was hit with (another) downgrade.
Dow Jones Industrial Average (DJI - 15,376.06)
spent the entire session in the black, and tagged an intraday high
of 15,380.97 shortly after noon. For the day, the blue-chip
barometer ended up finishing 75.4 points, or 0.5%, higher. On a
week-over-week basis, the index gained 3%, its best weekly return
since January. The Dow's 23 advancers were led by Intel's (
3.6% gain, while Alcoa (
) paced the seven decliners with a loss of 1%.
S&P 500 Index (SPX - 1,687.99)
experienced some rollercoaster price action this morning, surging
right out of the gate, only to touch a session low of 1,682.22 an
hour later. By the close, however, the SPX was up 4.6 points, or
0.3%. Meanwhile, the
Nasdaq Composite (COMP - 3,722.18)
gained 6.2 points, or 0.2%. For the week, indexes rose 2% and 1.7%,
CBOE Market Volatility Index (VIX - 14.16)
had a choppy ride today, as well, and ended up finishing 0.1 point,
or 0.9%, lower. The "fear gauge" shed 10.7% for the week, closing
below its 20-week moving average once again.
A Trader's Take
"Despite the strong price action we have experienced during the
start of September, we are finally set to hear from the Fed next
week," continued Bell. "Certainly all eyes will be on Fed Chairman
Ben Bernanke, as many market participants are eager to find out if
tapering will begin in September, and if so, by how much."
3 Things to Know About Today's Market
- The preliminary September reading of the Thomson
Reuters/University of Michigan
consumer sentiment index
arrived at 76.8 -- down from the previous month's final reading
of 82.1, and falling short of the consensus view. Adding insult
to injury, the latest figure marked the index's lowest level
since April, and was attributed to rising interest rates.
- The Commerce Department said
climbed by 0.2% in August, disappointing economists who were
expecting an increase of 0.4%. However, last month's figure still
marked a fifth consecutive monthly advance. Excluding
automobiles, gas, and building materials, core sales rose 0.2%,
compared to July's increase of 0.5%.
- The rumors swirling around Twitter during the past few weeks
have turned out to be true, as the social media guru tweeted that
filed for an initial public offering
on Thursday. Should the firm become a publicly traded company,
expectations will be high. According to eMarketer, Twitter is on
track to earn $583 million in advertising revenue this year, and
$1 billion in 2014. "My over/under for Twitter at end of first
day of trading: $25B," tweeted former PayPal executive David
5 Stocks We Were Watching Today
was slapped with a downgrade at Jefferies following this week's
new iPhone reveal and yesterday's shareholder news.
- A closer look at
shows a bullish slant in the options pits, despite heavy
pessimism from the brokerage bunch.
- Analysts at HSBC raised their price target for
this morning, which could help amplify the stock's upward
- As the shares of
ARM Holdings (ARMH)
took a breather, put buyers zeroed in on the tech concern's
was targeted by longer-term option bears, who wagered on the
mobile phone maker to reverse course by early next year.
For a look at today's options movers and commodities
activity, head to page 2.
Crude futures felt the weight of today's weaker-than-expected
retail sales and consumer sentiment data, while efforts to avoid a
U.S. military strike on Syria also dragged prices lower. By the
close, October-dated crude shaved off 39 cents, or 0.4%, to end at
$108.21 per barrel. On a weekly basis, black gold shed 2.1%.
Meanwhile, gold futures extended yesterday's decline, as
investors await the Fed's policy statement due next week. Gold for
December delivery fell $22, or 1.7%, to finish at $1,308.60 an
ounce -- the lowest close since Aug. 7. For the week, the precious
metal dropped 5.6%.
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