"Stocks jumped early in the session after the European Central
Bank decided to cut interest rates, but the rally didn't last
long," said Schaeffer's Senior Equity Analyst Joe Bell, CMT. "By
midday, most major sectors reversed sharply and finished deep in
the red. Once again, small-caps and technology stocks really
lagged." Although the
Dow Jones Industrial Average (DJI)
touched another all-time intraday peak, the index went on to post a
triple-digit decline by the closing bell.
Continue reading for more on today's market, including
Twitter Inc (NYSE:
) made its long-awaited debut on Wall Street, third-quarter gross
domestic product grew at a faster-than-expected pace, and J.C.
Penney Company, Inc. (
) spiked on strong same-store sales.
Dow Jones Industrial Average (DJI - 15,593.98)
tagged a record intraday high of 15,797.68 within the first 30
minutes of trading, but tumbled throughout the rest of the session
to finish 152.9 points, or 1%, lower. International Business
Machines Corp. (
) led the blue-chip index's mere two advancers with a gain of 0.5%,
while The Walt Disney Company's (
) loss of 2.7% paced the 28 decliners.
Aside from a brief blip higher this morning, the
S&P 500 Index (SPX - 1,747.15)
spent most of the day in negative territory, falling 23.3 points,
or 1.3%, by the closing bell. Meanwhile, the
Nasdaq Composite (COMP - 3,857.33)
dropped 74.6 points, or 1.9%.
CBOE Volatility Index (VIX - 13.91)
reached a session peak of 14.14 just ahead of the close, and ended
up advancing 1.2 points, or 9.8%, for the day.
A Trader's Take
"Despite being a bad day for stocks in general, today was really
all about Twitter's IPO," Bell continued. "The stock finished the
day up almost 73%, making those who bought the IPO very happy
3 Things to Know About Today's Market
- In what was deemed the second-largest Internet IPO in
history, Twitter Inc (TWTR)
surged north of the $50 level
during its first day as a publicly traded stock. Shares of the
microblogging platform opened at $45.10 this morning, after their
IPO price was set at $26 each. By the close, TWTR was docked at
$44.90, up 72.7%.
- The European Central Bank was in the early morning spotlight,
unexpectedly slashed interest rates
to an all-time low of 0.25%. During a press conference, ECB
President Mario Draghi said he expects inflation pressures to
ease even further, and that the central bank plans to keep
interest rates low for a considerable length of time.
- The Commerce Department said gross domestic product (GDP)
climbed by a
yearly rate of 2.8% in the third quarter
-- up from a rate of 2.5% in the previous quarter, and marking
the fastest pace of growth during the past year. Economists, on
average, were forecasting an increase of 2.3%.
5 Stocks We Were Watching Today
Activision Blizzard, Inc. (ATVI)
scored a pair of price-target hikes following last night's
stronger-than-expected quarterly earnings report.
- An increase in October same-store sales provided struggling
J.C. Penney Company, Inc. (
with a much needed lift on the charts today.
Whole Foods Market, Inc.'s (WFM)
softer-than-anticipated fiscal 2014 guidance triggered a round of
price-target cuts from the brokerage bunch.
- Ahead of tomorrow morning's turn in the earnings
Lions Gate Entertainment Corp. (USA) (LGF)
saw a surge in bullish options activity.
- One optimistic
Facebook Inc (FB)
speculator used December options to construct a long call spread
on the Internet issue.
For a look at today's options movers and commodities
activity, head to page 2.
Crude futures drifted lower today, as an unexpected rate cut by
the European Central Bank -- along with some upbeat U.S. GDP data
-- strengthened the dollar. By the close, the December contract
lopped off 60 cents, or 0.6%, to finish at $94.20 per barrel.
Likewise, the same pair of headlines weighed on gold futures,
with December-dated gold shedding $9.30, or 0.7%, to end the
session at $1,308.50 per ounce.