The
Dow Jones Industrial Average (DJI)
spent the session wallowing in the red, suffering a triple-digit
slide and erasing nearly all of its weekly surplus by the close.
"Today was all about earnings," said Schaeffer's Senior Technical
Strategist Ryan Detrick. "The reality is we're in the second inning
and earnings have stunk. We'd better put our 'rally caps' on and
hope earnings come in a lot better next week, or the recent
weakness could very well continue."
And now, a look at the numbers...
The
Dow Jones Industrial Average (DJI - 13,343.51)
blazed a steady trail lower today, surrendering 205.4 points, or
1.5%, to pare its weekly gain to just 0.1%. As a result of its
worst single-session drop in four months, the blue-chip barometer
ended beneath its 50-day moving average for the first time since
July 12. Of the Dow's 30 components, only Home Depot (
HD
) bucked the trend, tacking on 0.2%. Of the 29 declining equities,
McDonald's (
MCD
) suffered the worst, giving up 4.5% in the wake of disappointing
earnings.
Likewise, the
S&P 500 Index (SPX - 1,433.19)
steepened its losses as the session progressed, falling 24.2
points, or 1.7%, before finding a foothold in the 1,430 region. For
the week, the SPX edged 0.3% higher. Meanwhile, a batch of
lackluster earnings in the tech sector weighed on the
Nasdaq Composite (COMP - 3,005.62)
, which plunged 67.3 points, or 2.2%, to finish at its lowest point
since Aug. 6. However, the index maintained its perch atop the
round-number 3,000 marker. For the week, the COMP gave up 1.3%.
On the other hand, the
CBOE Market Volatility Index (VIX - 17.06)
skyrocketed 2 points, or 13.5%, with the market's "fear barometer"
conquering its 80-day moving average for just the second time since
late June.
Today's highlight
: "Although it was a rough day for the bulls, it wasn't a huge
shock," said Detrick. "Small-cap stocks and tech have been lagging
for a month now, and those were two warnings signs that the overall
market might crack. At the same time, we're still relatively close
to new highs across the board, regardless of how worried everyone
is on TV. Remember, we've scared ourselves on every pullback for
more than three years now. To me, a lot of negativity is already
priced into things here, and any good news could quickly turn this
ship around."
Noteworthy stats at the close:
- The equity put/call volume ratio across all 10 options
exchanges ended at 1.01, with roughly 10.6 million calls and 10.8
million puts traded.
- The put/call volume ratio on the iPath S&P 500 VIX
Short-Term Futures ETN (NYSEARCA:VXX - 34.99) checked in at 0.74,
with calls edging out puts.
- The New York Stock Exchange (NYSE) showed an advance/decline
ratio of 0.28, as the number of downward movers significantly
outpaced upwardly mobile stocks. In similar fashion, the
advance/decline ratio on the Nasdaq stood at 0.27.
Explore our
Trading Floor Blog
and
Daily Options Blog
for coverage on today's big stories, including:
And, in case you missed it
... Analysts hammered
Google (GOOG)
in the wake of its premature earnings release.
For today's activity in commodities, options, and more, head
to page 2.
Crude futures followed stocks into the red today, thanks to
concerns about the closure of a key U.S. pipeline. In addition, the
strengthening greenback took its toll on the dollar-denominated
commodity. By the close, November-dated oil gave up $2.05, or 2.2%,
to end at $90.05 per barrel. For the week, black gold surrendered
2%.
Gold futures fell to a six-week low, as lackluster earnings and
economic data, as well as lingering concerns about the euro zone,
drove investors to the safety of the dollar. In addition, signs of
slowing growth in China weighed on expectations for gold demand.
Against this backdrop, gold for December delivery gave up $20.70,
or 1.2%, to end at $1,724 an ounce. For the week, the malleable
metal shed 2.2%, marking its second straight weekly deficit.
Levels to watch in trading...
-
Dow Jones Industrial Average (DJI - 13,343.51)
- support at 11,500; resistance at 14,000
-
S&P 500 Index (SPX - 1,433.19)
- support at 1,100; resistance at 1,500
-
Nasdaq Composite (COMP - 3,005.62)
- support at 2,400; resistance at 3,400
At the end of every market day, the staff at Schaeffer's
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