Dow Jones Industrial Average (DJI)
got off to a rough start, and early signs pointed to another dismal
day on Wall Street. However, indications of actual bipartisanship
in Washington, D.C., lured a few buyers from the sidelines, with
congressional leaders calling "fiscal cliff" talks with the
president "constructive." With hope seemingly on the horizon, the
major market indexes turned higher, snapping their losing streaks.
Continue reading for more on today's market events,
Daily Game Plan
this level is retaken
, markets are guilty until proven innocent, explains Schaeffer's
Senior Trading Analyst Bryan Sapp.
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: Why won't the market's
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Dow Jones Industrial Average (DJIA)
was down about 70 points at its intraday nadir, but rebounded to
notch a 45.9-point, or 0.4%, gain and end its four-day retreat.
Twenty-two of the Dow's 30 components ended higher, led by Alcoa's
) 1.6% gain. Meanwhile, Hewlett-Packard (
) paced the eight declining equities, shedding 1.8%. For the week,
the Dow gave up 1.8%, but maintained a perch atop its 80-week
S&P 500 Index (SPX)
clawed its way out of the red, adding 6.6 points, or 0.5%. The
Nasdaq Composite (COMP)
followed suit, tacking on 16.2 points, or 0.6%, after spending the
first half of the session south of breakeven. For the week, the SPX
and COMP gave up 1.5% and 1.8%, respectively.
CBOE Market Volatility Index (VIX)
dropped 1.6 points, or 8.8%, but found a foothold atop its 10-week
A Trader's Take
"In the end, it was a lot of volatility, but nothing really
happened," said Senior Technical Strategist Ryan Detrick. "Still,
we did finish green, which is a nice change given the recent
performance. There wasn't a lot of news out there, but I am very
encouraged by the recent investor sentiment polls. We are seeing
fear spike up to levels last seen at the June lows. Now, of course,
this doesn't mean we bottom right here and now, but having a lot of
fear is one necessity for a major bottom, and we are seeing that
Looking ahead to next week, "I'm sure we'll have more rumors
about the fiscal cliff and Europe to drive the daily action," he
continued. "Then, considering volume will be very light during a
holiday week, there is always the chance that we could have another
volatile week coming up."
Economic and Earnings News
Industrial production declined by 0.4% in October, said the
Federal Reserve, as Superstorm Sandy shaved about one percentage
point from monthly U.S. output. Capacity utilization contracted to
77.8% from 78.2%. Consensus estimates were pegged considerably
higher, as economists were looking for production to rise 0.2% on
More Stocks Making News
For today's activity in commodities, options, and more, head
to page 2.
In the Options Pits
Crude futures closed higher today, catching a lift from the
intensifying conflict between Israel and Palestine. December-dated
oil settled on a gain of $1.22, or 1.4%, at $86.67 per barrel. For
the week, crude advanced 0.8%.
Gold futures managed a minor gain, with geopolitical anxiety
helping the precious metal bounce back from Thursday's drubbing.
The December contract tacked on 90 cents, or roughly 0.1%, to close
at $1,714.70 per ounce. On a weekly basis, however, gold fell
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