"With the bond market closed in observance of Veterans Day, it
was a very slow session," noted Schaeffer's Senior Technical
Strategist Ryan Detrick, CMT. "There was virtually no economic
news, and it felt like many traders simply took the day off, as we
closed flat and on very light volume. Looking at the calendar for
the rest of the week, earnings season is nearly over, and there
aren't that many big economic reports due for release. In other
words, this could be a slow week overall." Despite the sluggish
action on Wall Street, the
Dow Jones Industrial Average (DJI)
managed to reach another record closing high.
Continue reading for more on today's market, including
Transocean LTD (
) reached an agreement with billionaire investor Carl Icahn,
ViroPharma Inc (
) surged on M&A news, and Apple Inc. (
) received a rare bearish brokerage note.
Dow Jones Industrial Average (DJI - 15,783.10)
spent most of the day in positive territory, and closed the session
with a gain of 21.3 points, or 0.1% -- marking another all-time
closing high. International Business Machines Corp. (IBM) led the
13 advancers with a rise of 1.6%, while The Boeing Company's (BA)
drop of 0.7% paced the 16 decliners. UnitedHealth Group Inc. (UNH)
S&P 500 Index (SPX - 1,771.89)
followed a similar path, and tacked on 1.3 points, or roughly 0.1%,
by the closing bell. Meanwhile, the
Nasdaq Composite (COMP - 3,919.79)
edged up 0.6 point.
CBOE Volatility Index (VIX - 12.53)
was parked in the red for most of the session, dropping 0.4 point,
or 2.9%, by day's end.
A Trader's Take
"After the strong buying we saw on Friday, it was nice that we
didn't give anything back," continued Detrick. "Sure it was a
boring day, but the bulls stood tough. I wish I had more to say,
but today was what traders call a coffee day. You would have been
better off drinking coffee all day, as nothing really
3 Things to Know About Today's Market
- Fed Chair nominee Janet Yellen -- a known supporter of the
central bank's bond-buying program -- will
appear before the Senate Banking Committee
this Thursday, Nov. 14, at 10:00 a.m. ET. If her nomination is
sent on for full Senate approval, Yellen will need 60 votes in
her favor to win confirmation.
- After a months-long struggle, Transocean LTD (
) finally reached
an agreement with activist investor Carl Icahn
. The oil and gas concern said it will adjust its quarterly
dividend to $3 per share, while also reducing the size of its
board of directors to 11 from 14. Meanwhile, the Icahn Group
agreed to vote favorably on the firm's board nominees and other
issues at the company's meeting next year.
- Ireland-based Shire Plc announced plans to
purchase ViroPharma Inc (
for around $4.2 billion, or about $50 per share. The acquisition
will give Shire access to Cinryze -- ViroPharma's hereditary
angioedema treatment -- which complements its Firazyr drug.
5 Stocks We Were Watching Today
Apple Inc. (
was slapped with a price-target cut today, despite the
overwhelming bullish bias from the analyst crowd.
- Put volume spiked on
Cirrus Logic, Inc. (CRUS)
, amid news that the company's audio amplifier wasn't used in
AAPL's new iPad Air.
- Post-earnings option bears flocked toward
Molycorp Inc (MCP)
, and wagered on further declines by early next year.
Ford Motor Company (F)
attracted a bullish trader, who forecast decade-plus highs for
the auto giant over the next several months.
- Call activity ramped up on
Applied Materials, Inc. (AMAT)
, but were some of today's out-of-the-money buyers actually
skeptics in disguise?
For a look at today's options movers and commodities
activity, head to page 2.
Crude futures drifted higher today, as stalled talks over Iran's
nuclear program gave oil prices a slight boost. By the session's
end, the December contract added 54 cents, or 0.6%, to close at
$95.14 per barrel.
Conversely, gold futures declined, as tapering fears once again
weighed on the malleable metal. December-dated gold shaved off
$3.50, or 0.3%, to finish at $1,281.10 per ounce.
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