"Another day has passed and the government shutdown continues,"
sighed Schaeffer's Senior Equity Analyst Joe Bell, CMT. "We ended
the week on a bit of a positive note, as most major sectors
finished in the green after a few days of negative price action.
Taking a step back, we still remain in a period of congestion with
little net movement." For its part, the
Dow Jones Industrial Average (DJI)
rebounded back above the 15,000 millennium level and finished not
far from its intraday high, while other major indexes followed
suit. Weekly stats, however, reflect rising volatility and mixed
returns for stocks.
Continue reading for more on today's market, including
Political leaders grow increasingly frustrated, Twitter
releases its game plan, and option bulls express short-term hopes
for Advanced Micro Devices (
Aside from a brief trip below the breakeven line shortly after
the open, the
Dow Jones Industrial Average (DJI - 15,072.58)
spent the day in the black, retaking control of the 15,000 mark and
closing near its intraday high. By the bell, the blue-chip index
had gained 76.1 points, or 0.5%. For the week, however, the Dow
surrendered 1.2%. The index's 24 advancers were paced by Walt
), which added 2%. At the back of the pack was Wal-Mart Stores (
), which dropped 0.5%.
S&P 500 Index (SPX - 1,690.50)
also muscled higher on the day, settling with a gain of 11.8
points, or 0.7%, to pare its weekly loss to 0.1%. Also higher was
Nasdaq Composite (COMP - 3,807.75)
, which gained 33.4 points, or 0.9%, and added 0.7% for the
CBOE Market Volatility Index (VIX - 16.74)
slipped back south of the 17 threshold, losing 0.9 point, or 5.3%,
on the day. Week-over-week, however, the market's fear gauge
managed to gain 8.3%.
A Trader's Take
"The Nasdaq has really outperformed this week and still trades
near a 13-year high," noted Bell. "Small-cap stocks have also held
up pretty well during the past week, which we view as a positive
for the long-term health of the market."
3 Things to Know About Today's Market
- Verbal barbs continued to fly across party lines as the
government shutdown extended to a fourth day
. President Barack Obama canceled his trip overseas to the
Asia-Pacific Economic Corporation summit, and leaders from both
parties reiterated their desire for an end to the gridlock. House
Speaker John Boehner (R-Ohio) implored Democrats to reconsider
modifying Obamacare as part of any budget deal, and exclaimed,
"The American people don't want their government shut down and
neither do I." The president held his ground, noting, "I'm happy
to have negotiations. We can't do it with a gun held to the head
of the American people."
- Following similar words of caution from the U.S. Treasury
Department, International Monetary Fund Managing Director
Christine Lagarde said it is
"mission critical" that the U.S. lift its debt
before the Oct. 17 deadline. In a speech to students in
Washington, D.C., on Thursday, Ms. Lagarde noted that a delay in
doing so could "very seriously damage not only the U.S. economy,
but the entire global economy."
- Investors now have more details about the most anticipated
initial public offering (IPO) since Facebook (FB) debuted last
Twitter disclosed its S-1 filing
, which revealed information such as its future ticker symbol (
) and the amount the micro-blogging site hopes to raise via its
IPO ($1 billion).
5 Stocks We Were Watching Today
- Wall Street's resolute support for
continued, as BMO hiked its price target on the iPhone parent by
Option Idea of the Week
American International Group (AIG)
could be a good target for intermediate-term bulls.
- Weekly options were popular in
Advanced Micro Devices (
pits, as bullish traders targeted short-term gains around the
semiconductor's earnings release.
- Call buyers were willing to pay a small premium to place
back-month bets on
Juniper Networks (JNPR)
- Put buyers descended upon
, betting on the stock to reverse lower in the coming weeks.
For a look at today's options movers and commodities
activity, head to page 2.
As Tropical Storm Karen brewed in the Gulf of Mexico, crude oil
futures closed higher for only the second time in six sessions. At
the closing bell, November-dated crude was up 53 cents, or 0.5%, at
$103.84 per barrel. Week-over-week, black gold managed to add
Elsewhere, a rising dollar and continued debt-ceiling concerns
sent gold futures lower on the day. December-dated gold logged a
drop of $7.70, or 0.6%, to settle at $1,309.90 per ounce. Over the
past week, gold retreated 2.2%.
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