Dow Touches a Record Closing High in Light Session

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"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 :

plus...
    Transocean LTD ( RIG ) reached an agreement with billionaire investor Carl Icahn, ViroPharma Inc ( VPHM ) surged on M&A news, and Apple Inc. ( AAPL ) received a rare bearish brokerage note.

The 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) remained unchanged.

The 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.

Conversely, the 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.

CLOSING SUMMARY - INDICES

CLOSING SUMMARY - NYSE AND NASDAQ

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 happened."

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. (Reuters)
  • After a months-long struggle, Transocean LTD ( RIG ) 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. (USA Today)
  • Ireland-based Shire Plc announced plans to purchase ViroPharma Inc ( VPHM ) 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. (Bloomberg)

5 Stocks We Were Watching Today :

  1. Apple Inc. ( AAPL ) was slapped with a price-target cut today, despite the overwhelming bullish bias from the analyst crowd.
  2. 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.
  3. Post-earnings option bears flocked toward Molycorp Inc (MCP) , and wagered on further declines by early next year.
  4. Ford Motor Company (F) attracted a bullish trader, who forecast decade-plus highs for the auto giant over the next several months.
  5. Call activity ramped up on Applied Materials, Inc. (AMAT) , but were some of today's out-of-the-money buyers actually skeptics in disguise?

EARNINGS

For a look at today's options movers and commodities activity, head to page 2.

STOCKS - NOTABLE CALL ACTIVITY

STOCKS - NOTABLE PUT ACTIVITY

Commodities :

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.

SCHAEFFER'S MARKET POSTURE



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: AAPL , GMCR , RIG , SBUX , VPHM

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