"The market got off to a very strong start at the open, but most
major sectors finished well off their intraday highs," noted
Schaeffer's Senior Equity Analyst Joe Bell, CMT. "Many participants
thanked the lack of military action against Syria over the holiday
weekend for the bounce, but that situation continues to linger over
the market." Nevertheless, the
Dow Jones Industrial Average (DJI)
managed to finish the session north of breakeven.
Continue reading for more on today's market, including
- Our founder and CEO, Bernie Schaeffer, explains what traders
can learn from
VIX call volume spikes
- Schaeffer's Senior Trading Analyst Bryan Sapp opines that the
"markets are setting up for a push lower," despite today's blip
- This week's edition of
Short Interest Update
highlights three uptrending stocks that could benefit from
The ISM's purchasing managers index (PMI) rose in August,
construction spending hit a multi-year high, and Vodafone (
) inked a deal with Verizon Communications (
Dow Jones Industrial Average (DJI - 14,833.96)
soared to an intraday high of 14,777.48 almost right out of the
gate this morning, but pared its gains throughout the session to
close just 23.7 points, or 0.2%, higher, after spending much of the
afternoon below breakeven. The blue-chip index's 16 advancers were
led by United Technologies' (
) climb of 2.6%, while the 14 decliners were paced by Microsoft's (
) 4.6% loss.
S&P 500 Index (SPX - 1,639.77)
charted a similar path as the Dow, and gained 6.8 points, or 0.4%.
Nasdaq Composite (COMP - 3,612.61)
advanced 22.7 points, or 0.6%.
CBOE Market Volatility Index (VIX - 16.61)
dropped to an intraday low of 16.11 this morning, but narrowed its
losses to 0.4 point, or 2.4%, by the closing bell.
A Trader's Take
"There were two big deals this morning, as Microsoft (
) and Verizon Communications (
) both had major acquisitions," Bell pointed out. "Unfortunately
for the Dow, these two blue-chip components reacted negatively,
which directly caused the big-cap index to lag the market."
3 Things to Know About Today's Market
- The Institute for Supply Management's (ISM)
manufacturing purchasing managers index (PMI)
arrived at 55.7 last month -- up from July's figure of 55.4, and
besting economists' projections for a reading of 54.0. This
latest figure marked the index's highest level since mid-2011.
- The Commerce Department said
climbed 0.6% in July to an annual rate of $900.8 billion, marking
a four-year high. This latest gain -- which exceeded consensus
estimates for an increase of 0.4% -- comes on the heels of June's
nearly flat reading.
- Vodafone (
) agreed to
sell its 45% stake
in Verizon Wireless to -- you guessed it -- Verizon
) for approximately $130 billion in cash and stock. This makes
the latter the largest wireless carrier in the U.S.
5 Stocks We Were Watching Today
- Despite the stock's lackluster price action in 2013,
scored an upgrade at Macquarie this morning.
Solar Winds (SWI)
speculator placed a neutral-to-bullish bet on the security by
selling front-month puts.
- Traders converged on
, after the firm announced plans to sell its handset business to
Southwest Airlines (LUV)
saw a surge in longer-term bullish options activity, with a
particular focus on the March series of calls.
- Weekly bulls pounced on
Cisco Systems (CSCO)
, scooping up calls in hopes of a trek higher over the next two
For a look at today's options movers and commodities
activity, head to page 2.
Crude futures gained ground on Tuesday, as rising manufacturing
in China and the U.S. suggested a positive forecast for future
energy demand. By the close, October-dated oil had risen 89 cents,
or 0.8%, to settle at $108.54 per barrel.
Gold futures also advanced -- for the first session in four --
due in part to continued uncertainty regarding Syria and a strike
among evening-shift workers at South African gold mines. The yellow
metal rose $15.90, or 1.1%, to close at $1,412 an ounce.
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