"Today was all about the Fed, as we saw the typical Fed-day
volatility," observed Schaeffer's Senior Technical Strategist Ryan
Detrick, CMT. "After a big initial dip, the market did bounce some
into the close. Overall, the Fed didn't do much that wasn't
expected, as they left asset purchases at $85 billion a month. The
subsequent price action looked like a 'sell the news' type of move.
The big question is, will it continue?" As a result, the
Dow Jones Industrial Average (DJI)
S&P 500 Index (SPX)
closed in the red, although both still managed to tag record
Continue reading for more on today's market, including
The Fed said it doesn't plan to start tapering yet, the private
sector added fewer jobs than expected in October, and Facebook Inc
) received a vote of confidence from the analyst crowd ahead of
this evening's earnings report.
Dow Jones Industrial Average (DJI - 15,618.76)
moved higher out of the gate -- tagging an all-time intraday high
of 15,721.00 in the process -- but faltered later in the day,
particularly after the latest Fed remarks. The blue-chip bellwether
ended up closing 61.6 points, or 0.4%, lower. General Electric
) led the Dow's five advancers with a gain of 0.6%, while The
Procter & Gamble Company (
), Verizon Communications Inc. (VZ), and International Business
Machines Corp. (IBM) paced the 25 laggards with declines of 1.1%
S&P 500 Index (SPX - 1,763.31)
followed a similar path, touching a record intraday peak of
1,775.22 within the first few minutes of the session. By the end,
however, the index shed 8.6 points, or 0.5%. Meanwhile, the
Nasdaq Composite (COMP - 3,930.62)
fell 21.7 points, or 0.6%.
CBOE Volatility Index (VIX - 13.65)
worked its way higher in early trading, but quickly pared most of
its gains, finishing just 0.2 point, or 1.8%, higher for the
3 Things to Know About Today's Market
- The Federal Open Market Committee (FOMC) announced it will
scaling back its bond-buying program
yet. However, the latest decision dragged markets lower, as some
interpreted the language of the statement to mean that tapering
may come sooner than many anticipated.
- Automatic Data Processing Inc. (ADP) said the private sector
created 130,000 jobs in October
-- down from 145,000 in September, and falling short of the
consensus view. Adding insult to injury, the latest figure marks
the fewest number of jobs added since April.
- General Motors Company (GM) reported a
of $757 million, or 45 cents per share, down from $1.48 billion,
or 89 cents per share, in the year-ago period. Excluding items,
earnings came in at 96 cents per share. Analysts, on average,
were expecting a per-share profit of 94 cents.
5 Stocks We Were Watching Today
Facebook Inc (
received a bullish brokerage note today, as the firm prepares to
report third-quarter earnings this evening.
- A closer look at
Starbucks Corporation's (SBUX)
sentiment backdrop shows a bullish bias ahead of tonight's
quarterly earnings report.
- Pre-earnings traders scooped up
Expedia Inc (EXPE)
calls, focusing particularly on the front-month series of
- Longer-term call sellers converged on
Nokia Corporation (ADR) (NOK)
, despite the stock's earnings-induced, positive price
Baidu Inc's (BIDU)
well-received quarterly earnings report triggered some upbeat
attention from the analyst crowd.
For a look at today's options movers and commodities
activity, head to page 2.
Crude futures drifted lower again today, after the regularly
scheduled inventories report showed a sixth weekly increase in oil
supplies. By the time the dust settled, the December contract
dropped $1.43, or 1.5%, to end at $96.77 per barrel -- the lowest
closing price for a most-active contract since late June.
Meanwhile, gold futures closed higher, thanks to the ADP's
lackluster employment report. December-dated gold climbed $3.80, or
0.3%, to end at $1,349.30 an ounce. However, the malleable metal
gave up these gains in electronic trading following the FOMC
All Rights Reserved. Unauthorized reproduction of any SIR publication is strictly prohibited.