"The only news of note was the ADP jobs report, which came in a
little worse than expected," said Schaeffer's Senior Equity Analyst
Joe Bell, CMT. "The saga continues with the U.S. government, as
today marks the second day of the shutdown." As a result, the
Dow Jones Industrial Average (DJI)
tumbled into negative territory.
Continue reading for more on today's market, including
- In today's edition of
Bernie Schaeffer on Charts
, our founder and CEO explains why iShares Barclays 20+ Yr
Treasury Bond (TLT) traders should keep an eye on round-number
- Schaeffer's Senior Trading Analyst Bryan Sapp explains why
the bulls are still in control, and defines the
"line in the sand"
for the S&P 500 Index (SPX).
- In his latest
Chart of the Day
offering, our Senior Options Strategist Tony Venosa, CMT, takes a
closer look at trading prospects for Aetna (
Banking bigwigs aired their concerns to President Barack Obama,
) may have received another buyout bid, and Tesla Motors (
) was slapped with a downgrade.
Dow Jones Industrial Average (DJI - 15,133.14)
stumbled right off the bat this morning, tagging an intraday low of
15,044.71 within the first hour of the session. After remaining in
the red throughout the day, the blue-chip bellwether finished 58.6
points, or 0.4%, lower. The Dow's 13 advancers were led by 1% gains
for Microsoft (
) and JPMorgan Chase (
), while United Technologies (UTX) paced the 17 laggards with a
decline of 2.2%.
S&P 500 Index (SPX - 1,693.87)
chugged along in similar fashion, sinking to a session low of
1,680.34 early in the day. By the close, the index was off 1.1
points, or 0.1%. Meanwhile, the
Nasdaq Composite (COMP - 3,815.02)
shed 3 points, or 0.1%, after registering yet another 13-year high
in early afternoon trading.
CBOE Market Volatility Index (VIX - 16.60)
spiked at the opening bell, climbing as high as 16.81 during the
morning hours of trading. For the day, the "fear barometer" added
1.1 points, or 6.8%.
A Trader's Take
"After an early rush of selling, it was very encouraging to see
yesterday's low hold as support on the S&P 500," continued
Bell. "With so much uncertainty out of Washington, it seems like
the market is currently in the midst of a lot of choppy, sideways
3 Things to Know About Today's Market
- Automatic Data Processing (ADP) said the private sector
added 166,000 jobs
in September, compared to the previous month's gain of 159,000.
Economists, on average, were expecting employers to add 180,000
jobs. For the third quarter, the economy added an average of
162,000 jobs per month, compared to 220,000 at the beginning of
- A number of bank chiefs met at the White House today to
warn President Barack Obama
of the ill effects the shutdown and debt limit could have on the
financial sector if the issues are not resolved. "We shouldn't
use the threat of causing the U.S. to fail on its obligations to
repay its debt as a cudgel," noted Lloyd Blankfein, CEO of
Goldman Sachs (GS). If Congress is unable to find a resolution
before Oct. 17, the Treasury will surpass its borrowing capacity,
thus leaving the U.S. unable to pay its bills in their entirety.
- Rumors of
another potential bid
for BlackBerry (
) circulated through the Street, as sources familiar with the
matter said the struggling telecom concern has attracted interest
from Cerberus Capital Management LP. This comes on the heels of
another bid from Fairfax Financial Holdings Inc, which offered to
take BBRY private for $4.7 billion last month.
5 Stocks We Were Watching Today
Tesla Motors (
received a downgrade at Baird, although the brokerage firm said
it could turn bullish again if certain advances are made.
strong September sales, one speculator bet on the auto giant to
stall over the next several weeks.
- Near-term option bulls flocked toward
General Electric (GE)
, and zeroed in on the security's November-dated calls.
Delta Air Lines' (DAL)
new all-time high didn't deter put buyers, who predicted a
decline for the stock by week's end.
- Call volume ramped up on
again, this time with a focus on the front-month series of
For a look at today's options movers and commodities
activity, head to page 2.
Crude futures snapped their three-day losing streak, thanks to
reports that construction on the southern part of TransCanada's
(TRP) Keystone pipeline will wrap up by month's end. By the time
the dust settled, November-dated oil gained $2.06, or 2%, to end at
$104.10 per barrel.
Meanwhile, gold futures also advanced on day two of the
government shutdown, as a weaker-than-expected employment report
bolstered the precious metal. Gold for December delivery climbed
$34.60, or 2.7% to finish at $1,320.70 an ounce.