Dow Swings 115 on ISM Data, Euro-Zone Stimulus

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"Stocks dove deep into the red this morning, after two economic reports were below expectations," noted Senior Equities Analyst Joe Bell. "But bulls have to be encouraged, as most major sectors bounced and ended in positive territory. There doesn't seem to be one big cause for the turnaround, though some are pointing toward speculation that the European Central Bank (ECB) will introduce more stimulus to the euro zone this week." Despite a finish in the red for the Dow Jones Industrial Average (DJI) , the blue-chip barometer repaired much of its 114-point intraday deficit and closed safely above the psychologically important 13,000 level.

Click through to see what else was on our radar today:

And now, a look at the numbers...

CLOSING SUMMARY - INDICES

CLOSING SUMMARY - NYSE AND NASDAQ


The Dow Jones Industrial Average (DJI - 13,035.94) endured a 115-point swing today -- climbing as high as 13,092.39 and falling as low as 12,977.09 -- before all was said and done. But, by the time the closing bell rang, the Dow turned in a loss of 54.9 points, or 0.4%. Nineteen of the 30 blue chips headed south in today's session, as Caterpillar Inc. ( CAT ) paced the laggards with a 3.1% decline. Meanwhile, Verizon Communications Inc. ( VZ ) led the 11 outperformers with a 1.8% jump.

The S&P 500 Index (SPX - 1,404.94) couldn't maintain its late-day rally and drifted lower by 1.6 points, or 0.1%, though the index held onto its perch atop 1,400. On the other hand, the Nasdaq Composite (COMP - 3,075.06) advanced 8.1 points, or 0.3%, in the last two hours of trading, turning in the best performance of its fellow benchmarks.

The CBOE Market Volatility Index (VIX - 17.98) climbed higher today, closing at its loftiest price since Aug. 1. For the session, the VIX gained 0.5 point, or 2.9%.

Today's highlight : "The small caps took the lead in today's bounce, which could bode well for the overall market," said Bell. "The iShares Russell 2000 Index (ETF) (NYSEARCA:IWM) began leading in early August, after a few months of underperformance."

Turning to today's major market stories...

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

Crude futures took a tumble today after a disappointing Institute for Supply Management's (ISM) factory gauge ignited concerns about demand for the commodity. To boot, some speculators took profits following last week's gains. By the close, oil for October delivery lopped off $1.17, or 1.2%, to settle at $95.30 a barrel.

Conversely, gold futures jumped to their highest price since March 12, in the wake of a weak manufacturing report, which only stimulated hopes that the Federal Reserve would implement economic stimulus. As the dollar dipped in today's trading, December-dated gold added $8.40, or 0.5%, to close at $1,696 an ounce.

Levels to watch in trading...

  • Dow Jones Industrial Average (DJI - 13,035.94) - support at 11,500; resistance at 14,000
  • S&P 500 Index (SPX - 1,404.94) - support at 1,100; resistance at 1,500
  • Nasdaq Composite (COMP - 3,075.06) - 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.

All Rights Reserved. Unauthorized reproduction of any SIR publication is strictly prohibited.


This article appears in: Investing , Options

Referenced Stocks: CAT , CNO , HOV , SPF , VZ

Schaeffer's Investment Research

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As of 12/19/2014, 04:15 PM


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