Housing Sector Helps Stocks Edge Out a Win

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Although the Dow Jones Industrial Average (DJI) didn't travel too far from where it began today, the blue-chip barometer pierced the 13,600 level for the second time in four days. "We once again received a heavy dose of sideways price action today," said Schaeffer's Senior Equities Analyst Joe Bell. "This morning, better-than-expected housing data helped many homebuilding stocks surge and regain footing after a couple days of underperformance."

Keep reading to see what else was on our radar today:

And now, a look at the numbers...

CLOSING SUMMARY - INDICES

CLOSING SUMMARY - NYSE AND NASDAQ

The Dow Jones Industrial Average (DJI - 13,577.96) jumped to an intraday best of 13,626.48, but pared most of this lead by the closing bell. For the day, the Dow tacked on 13.3 points, or roughly 0.1%, to land at its loftiest price since December 2007. The Walt Disney Company's ( DIS ) 1.5% gain paced the 18 winning issues, while Exxon Mobil Corporation ( XOM ) led the 11 lagging blue chips with a near 1.2% drop. American Express Company ( AXP ) remained unchanged.

Both the S&P 500 Index (SPX - 1,461.05) and Nasdaq Composite (COMP - 3,182.62) took a cue from the Dow, following the index into the black today. By the close, the SPX inched higher by 1.7 points, or 0.1%, while the COMP eked out a 4.8-point, or 0.2%, rise.

The CBOE Market Volatility Index (VIX - 13.87) stayed south today, trimming off 0.3 point, or 2.2%. This marked the VIX's lowest daily settlement since August 17.

Today's highlight : "Consumer discretionary stocks finally took a leadership role once again," pointed out Bell. "Earlier this week, the risk-off trade was dominating, as consumer staples and defensive stocks were receiving most of the funds flowing into the market. As the more risky, discretionary names take back the lead role, it's a good sign for the overall market."

Turning to today's major market stories...

For today's activity in commodities, options, and more, head to page 2.

Crude futures notched their third consecutive loss today, as the Energy Information Administration (EIA) reported a bigger-than-expected rise in domestic oil inventories, and amid concerns that Saudi Arabia could take measures to decrease prices. October-dated oil sawed off $3.31, or 3.5%, to end at $91.98 a barrel. This marked the commodity's lowest price since August 4.

It was another day of minor gains for gold futures, following the Bank of Japan's plans to extend its monetary easing program . Gold for December delivery added 50 cents, or just under 0.1%, to settle at $1,771.70 an ounce.

Levels to watch in trading...

  • Dow Jones Industrial Average (DJI - 13,577.96) - support at 11,500; resistance at 14,000
  • S&P 500 Index (SPX - 1,461.05) - support at 1,100; resistance at 1,500
  • Nasdaq Composite (COMP - 3,182.62) - support at 2,400; resistance at 3,400

OUTPERFORMING AND UNDERPERFORMING SECTORS

STOCKS - MOVERS

STOCKS - EARNINGS

STOCKS - NOTABLE CALL ACTIVITY

STOCKS - NOTABLE PUT ACTIVITY

SCHAEFFER'S MARKET POSTURE

At the end of every market day, the staff at Schaeffer's Investment Research reviews the trading day in detail, covering major events and key market developments. Don't miss this critical, timely and insightful report. If you enjoyed today's edition of Market Recap, sign up here for free daily delivery straight to your inbox.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

All Rights Reserved. Unauthorized reproduction of any SIR publication is strictly prohibited.


This article appears in: Investing , Options

Referenced Stocks: AXP , DIS , GRPN , ORLY , XOM

Schaeffer's Investment Research

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