Dow Touches Another High, but Closes in the Red

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"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 :

plus...
    Twitter Inc (NYSE: TWTR ) 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. ( JCP ) spiked on strong same-store sales.

The 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. ( IBM ) led the blue-chip index's mere two advancers with a gain of 0.5%, while The Walt Disney Company's ( DIS ) 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%.

Elsewhere, the 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.

CLOSING SUMMARY - INDICES

CLOSING SUMMARY - NYSE AND NASDAQ

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 investors."

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%. (MarketWatch)
  • The European Central Bank was in the early morning spotlight, after it 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. (CNBC)
  • 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%. (MarketWatch)

5 Stocks We Were Watching Today :

  1. Activision Blizzard, Inc. (ATVI) scored a pair of price-target hikes following last night's stronger-than-expected quarterly earnings report.
  2. An increase in October same-store sales provided struggling J.C. Penney Company, Inc. ( JCP ) with a much needed lift on the charts today.
  3. Whole Foods Market, Inc.'s (WFM) softer-than-anticipated fiscal 2014 guidance triggered a round of price-target cuts from the brokerage bunch.
  4. Ahead of tomorrow morning's turn in the earnings confessional, Lions Gate Entertainment Corp. (USA) (LGF) saw a surge in bullish options activity.
  5. One optimistic Facebook Inc (FB) speculator used December options to construct a long call spread on the Internet issue.

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 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.

SCHAEFFER'S MARKET POSTURE



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This article appears in: Investing , Options

Referenced Stocks: DIS , IBM , JCP , KORS , TSLA

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