"It's still all about Fed Chairman Ben Bernanke's end-of-week
speech in Jackson Hole," said Schaeffer's Senior Technical
Strategist Ryan Detrick. "We're a day closer to hearing what the
central banker has to say -- and it was a day of very little
action, thank goodness." In yet another lightly traded session, the
Dow Jones Industrial Average (DJI)
spent time on both sides of breakeven, but relatively encouraging
economic and housing data helped the blue-chip barometer finish in
the black.
Click through to see what else was on our radar today:
And now, a look at the numbers...
After exploring a range of more than 63 points, the
Dow Jones Industrial Average (DJI - 13,107.48)
settled on a slim gain of 4.5 points, or 0.03%, but ended its third
straight session south of its 20-day moving average. Eighteen of
the Dow's 30 components finished in the black, led by Verizon
Communications Inc.'s (
VZ
) 1% advance. On the flip side, The Coca-Cola Company (
KO
) led the 12 laggards, swallowing a loss of 1.4%.
In similar fashion, the
S&P 500 Index (SPX - 1,410.49)
finished a wishy-washy session with a minute lead, tacking on 1.2
points, or 0.1%. Likewise, the
Nasdaq Composite (COMP - 3,081.19)
struggled to pick a direction, but added 4.1 points, or 0.1%, by
the close. What's more, the tech-rich COMP settled at its loftiest
closing price since early April.
The
CBOE Market Volatility Index (VIX - 17.06)
extended its recent uptrend, adding 0.6 point, or 3.5%.
Furthermore, the market's "fear barometer" conquered its 50-day
trendline for just the second session since mid-June.
Today's highlight
: "We had more positive economic data, as both the second-quarter
gross domestic product (GDP) and July housing reports came in
better than expected, and the Fed's Beige Book pointed to 'gradual'
economic growth," said Detrick. "There are lots of bears out there
opining that this market is only going up on hopes of 'QE3,' but
I'd like to point out that stocks are near five-year highs on
improving
economic data. We continue to think housing is leading us, and
today's data reinforces that we could see continually improving
economic data through the remainder of the year."
Turning to today's major market stories...
- Schaeffer's Senior Options Strategist Tony Venosa weighed in
on
Molycorp, Inc.'s (
MCP
) recent bounce
.
- Analysts offered their two cents on Chinese search concern
Baidu, Inc. (ADR) (
BIDU
)
and healthcare issue
WellPoint, Inc. (
WLP
)
.
-
Options traders took sides
on Goldman Sachs Group, Inc. (GS), The Fresh Market, Inc. (TFM),
and Zynga Inc. (ZNGA).
- Optimists scooped up round-number LEAPS on descending
Delta Air Lines, Inc. (DAL)
.
- Long-term call players also took a shine to
Yahoo! Inc. (YHOO)
.
- Whole Foods Market, Inc. (WFM) and The TJX Companies, Inc.
(TJX) were among the session's
technical overachievers
.
- Yelp Inc. (YELP) likely
gave the bears a surprise
today.
- MAKO Surgical Corp.'s (MAKO) upward momentum fueled
back-month call buying
.
- Premium sellers wagered on limited downside for
Schnitzer Steel Industries, Inc. (SCHN)
.
For today's activity in commodities, options, and more, head
to page 2.
Crude futures finished lower today, as traders responded to an
unexpected jump in domestic inventories. Additionally, Gulf-based
oil production is expected to bounce back quickly from Hurricane
Isaac, which further diminished supply concerns. October-dated oil
ended on a drop of 84 cents, or 0.9%, at $95.49 per barrel.
Gold futures also faltered, with the precious metal continuing
to retreat from Monday's four-month high. However, uncertainty
ahead of Friday's highly anticipated address from Fed Chairman Ben
Bernanke kept gold's losses to a minimum. Gold for December
delivery backpedaled $6.70, or 0.4%, to finish at $1,663 per
ounce.
Levels to watch in trading...
-
Dow Jones Industrial Average (DJI - 13,107.48)
- support at 11,500; resistance at 14,000
-
S&P 500 Index (SPX - 1,410.49)
- support at 1,100; resistance at 1,500
-
Nasdaq Composite (COMP - 3,081.19)
- support at 2,400; resistance at 3,400
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.