Dow Rebounds, Secures First Weekly Gain in Five

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"We saw quite a bit of economic data released again this morning, with most of the jobs numbers failing to beat expectations," observed Schaeffer's Senior Equity Analyst Joe Bell, CMT. "Today was all about Syria, though, as President Obama gave a speech at the G-20 summit. Uncertainty remains high, and the market experienced a ton of intraday volatility, but in the end, most of the major sectors finished slightly in the green." Likewise, the Dow Jones Industrial Average (DJI) managed to ease earlier losses, and closed in positive territory for the week.

Continue reading for more on today's market, including :

  • Schaeffer's Senior Options Strategist Tony Venosa, CMT, finds 11 reasons to be bullish on Pandora Media ( P ) in his latest Chart of the Day offering.
  • Today's installment of Weekly Contrarian explores upside potential for Comcast ( CMCSA ), despite lingering skepticism on the Street.
  • One spread strategist utilized weekly calls and puts to wager on minimal movement for BlackBerry ( BBRY ) ahead of any potential buyout developments.
plus...
    The latest jobs report disappointed the Street, tensions mounted between President Barack Obama and Russian President Vladimir Putin, and Yelp ( YELP ) received two bullish analyst initiations.

The Dow Jones Industrial Average (DJI - 14,922.50) plunged to an intraday low of 14,789.40 early on in the session, but clawed its way into the black during the afternoon. However, a last-minute dip caused the blue-chip barometer to close 15 points, or 0.1%, lower. The Dow's 15 advancers were led by Hewlett-Packard's ( HPQ ) 1.4% climb, while DuPont (DD) paced the 14 decliners with a loss of 0.9%. General Electric (GE) remained unchanged. For the week, the index managed a gain of 0.8% -- its first in five.

The S&P 500 Index (SPX - 1,655.17) took a similar tumble this morning, but eked out a slight advance of 0.1 point, or 0.01%. Meanwhile, the Nasdaq Composite (COMP - 3,660.01) tacked on 1.2 points, or 0.03%. On a weekly basis, the indexes added 1.4% and 2%, respectively.

The CBOE Market Volatility Index (VIX - 15.85) surged to a session high of 16.81 around 10:00 a.m. ET, and then erased most of its gains throughout the day. By the close, the "fear gauge" was 0.1 point, or 0.5%, higher, but finished the week with a 6.8% decline.

CLOSING SUMMARY - INDICES

CLOSING SUMMARY - NYSE AND NASDAQ

A Trader's Take :

"Although it seemed like it was going to be a big down day early on, buyers came into the market in heavy force late this morning, and helped the Dow rally more than 100 points off its session lows," Bell summarized. "The market continues to remain resilient in the face of all this uncertainty."

3 Things to Know About Today's Market :

  • The Labor Department said nonfarm payrolls rose by 169,000 in August, falling short of the consensus view. Adding insult to injury, the job count for the two months prior was downwardly revised by 74,000. Meanwhile, the unemployment rate edged down to 7.3% from 7.4%, marking its lowest point since December 2008. However, the participation measure dropped to its lowest level since August 1978. (Reuters)
  • Tensions grew between President Barack Obama and Russian President Vladimir Putin at a G-20 summit today, as the two discussed potential military action against Syria . Putin told reporters that Russia will continue to aid Syria -- which includes selling arms to the country -- should the U.S. move forward with a military strike. After what he called a "candid" discussion, Obama stated, "There are times where we have to make hard choices if we're going to stand up for the things we care about, and I believe that this is one of those times." (MarketWatch)
  • During a speech in Omaha, NE, Kansas City Fed President Esther George called for the Fed to begin scaling back current stimulus measures at its Sept. 17-18 meeting. While she noted that the tapering could spark some market volatility, she surmised, "An appropriate next step toward normalizing monetary policy could be to reduce the pace of purchases from $85 billion to something around $70 billion per month." (Bloomberg)

5 Stocks We Were Watching Today :

  1. Outperforming Yelp ( YELP ) scored bullish brokerage initiations at Barclays and Deutsche Bank in pre-market action.
  2. Short-term option players scooped up LinkedIn (LNKD) puts, despite the stock tagging a fresh record high yesterday.
  3. The latest Option Idea of the Week offers up a longer-term, bullish trading idea on J.M. Smucker (SJM) .
  4. Bearish sentiment continues to plague Netflix (NFLX) , even as the security continues to trek higher.
  5. Put buyers and sellers set their sights on AT&T (T) , as both groups eyed the October 31 strike.

EARNINGS

For a look at today's options movers and commodities activity, head to page 2.

STOCKS - NOTABLE CALL ACTIVITY

STOCKS - NOTABLE PUT ACTIVITY

Commodities :

Crude futures surged to their highest close since May 2011, as escalating tensions over Syria triggered concern over potential oil disruptions in the Middle East. By the time the dust settled, October-dated oil gained $2.16, or 2%, to end at $110.53 per barrel. On a weekly basis, black gold surged 2.7%.

Meanwhile, gold futures advanced, as today's lackluster jobs data led to a weaker dollar. The precious metal's December contract added $13.50, or 1%, to finish at $1,386.50 an ounce. For the week, however, gold dipped 0.7%.

SCHAEFFER'S MARKET POSTURE



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This article appears in: Investing , Options

Referenced Stocks: BBRY , CMCSA , HPQ , P , YELP

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