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Dow Sheds 110 Amid Earnings Anxiety and Tech-Sector Woes

By Schaeffer's Investment Research October 09, 2012, 04:43:18 PM EDT

Though mired in the red for the majority of the session, the Dow Jones Industrial Average (DJI) didn't retreat to its intra-day worst of 13,473.31 until the last moments of trading. "It was another relatively quiet day for the market, although technology stocks continued to lag," remarked Schaeffer's Senior Equities Analyst Joe Bell. " Intel Corporation's ( INTC ) was hit with a downgrade, which sent the shares surging lower. The trend of cutting guidance for this group continues and we are seeing a lot of underperformance. Energy and coal stocks really stepped up, though, and performed well."

Keep reading to see what else was on our radar today:

And now, a look at the numbers...

CLOSING SUMMARY - INDICES

CLOSING SUMMARY - NYSE AND NASDAQ

Dow Jones Industrial Average (DJI - 13,473.53) Intel Corporation's ( INTC ) MCD

The S&P 500 Index (SPX - 1,441.48) ripped back 14.4 points, or nearly 1%, closing below its 20-day moving average for the first time in a nearly a week. The broad-market barometer also notched a close below its 10-week trendline for the first time since June 22.

The Nasdaq Composite (COMP - 3,065.02) turned in the worst performance of its fellow benchmarks, sawing off 47.3 points, or 1.5%, finding its lowest daily settlement since August 30. The tech-rich COMP also notched a close below its 10-week trendline for the first time since June 22.

The CBOE Market Volatility Index (VIX - 16.37) gained 1.3 points, or 8.3%, to find a foothold at its loftiest price since September 26, though the 80-day moving average hovers above.

Today's highlight : "Today, everyone's eyes were on third-quarter earnings, as they get started with Alcoa Inc. ( AA )," noted Bell. "Earnings are expected to decline for the first time since the third quarter in 2009, which makes it all the more heavily anticipated."

AAPL Click here for more

Turning to today's major market stories...

For today's activity in commodities, options, and more, head to page 2.

After two down days, oil futures got a boost today from bargain-hunting speculators. Plus, the commodity was supported by supply concerns, as tensions are on the rise in the Middle East. By the close, November-dated crude jumped $3.06, or 3.4%, to settle at $92.39 a barrel.

While the dollar strengthened in today's session, gold futures notched their third consecutive loss on the heels of the International Monetary Fund's (IMF) warning about the rate of growth for the global economy. Gold for December delivery ripped off $10.70, or 0.6%, to end at $1,765 an ounce. This marked the malleable metal's lowest price since August 26.

Levels to watch in trading...

  • Dow Jones Industrial Average (DJI - 13,473.53) - support at 11,500; resistance at 14,000
  • S&P 500 Index (SPX - 1,441.48) - support at 1,100; resistance at 1,500
  • Nasdaq Composite (COMP - 3,065.02) - support at 2,400; resistance at 3,400

OUTPERFORMING AND UNDERPERFORMING SECTORS

STOCKS - MOVERS

STOCKS - EARNINGS

STOCKS - NOTABLE CALL ACTIVITY

STOCKS - NOTABLE PUT ACTIVITY

SCHAEFFER'S MARKET POSTURE

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.




The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.


This article appears in: Investing, Options

Referenced Stocks: AA, AAPL, INTC, MCD, SBUX



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