"This morning, it was all about the impressive jobs report that
was released," observed Schaeffer's Senior Equity Analyst Joe Bell,
CMT. "Nonfarm payrolls increased by 204,000, which easily surpassed
economists' expectations for the labor statistic. Stocks initially
sold off, but by midday, shares of most major indices were
positive, and the overall reaction was upbeat." Meanwhile, the
Dow Jones Industrial Average (DJI)
recovered all of yesterday's losses, and finished the week in
Continue reading for more on today's market, including
Groupon Inc (
) topped quarterly earnings expectations, consumer sentiment hit a
two-year low, and Twitter Inc (NYSE:
) received a pair of skeptical analyst notes.
After a bit of choppy price action early this morning, the
Dow Jones Industrial Average (DJI - 15,761.78)
surged higher, and finished with an advance of 167.8 points, or
1.1% -- marking a record closing peak. For the week, the Dow gained
0.9%. JPMorgan Chase & Co. (
) led the 27 advancers with a rise of 4.5%, while The Home Depot,
) decline of 0.3% paced the three laggards.
S&P 500 Index (SPX - 1,770.61)
was parked in the green for most of the session, and finished 23.5
points, or 1.3%, higher. Meanwhile, the
Nasdaq Composite (COMP - 3,919.23)
added 61.9 points, or 1.6%. On a weekly basis, the SPX tacked on
0.5%, while the COMP edged down approximately 0.1%.
CBOE Volatility Index (VIX - 12.90)
stumbled right out of the gate, and ended up shedding 1 point, or
7.3%, by the close. The "fear gauge" shaved off 2.9% for the
A Trader's Take
"We finally saw some outperformance from small-caps and
technology," Bell said. "These sectors have led the market for
quite some time, and it was nice to see a strong showing from them
after a few days of underperformance."
3 Things to Know About Today's Market
- The Labor Department said the U.S.
created 204,000 new jobs
in October, handily topping consensus projections for just
120,000 new positions. However, the unemployment rate edged up to
- Groupon Inc (
) reported a
narrower third-quarter loss
of $2.6 million -- roughly equivalent to breakeven on a per-share
basis -- compared to a loss of $3 million in the year-ago period.
Meanwhile, revenue climbed 5% to $595.1 million. For the fourth
quarter, GRPN expects to either break even again, or earn a
profit of 2 cents per share.
- The Thomson Reuters/University of Michigan's
consumer sentiment index
showed a preliminary November reading of 72 -- unexpectedly
declining from October's figure of 73.2, and marking the index's
lowest level in almost two years.
5 Stocks We Were Watching Today
- A well-received earnings report for
Priceline.com Inc (
triggered a slew of bullish brokerage notes ahead of the opening
- The latest
Option Idea of the Week
MGIC Investment Corp. (MTG)
could be poised for further near-term gains.
Twitter Inc (TWTR)
was slapped with some bearish analyst coverage today, despite
yesterday's successful debut on Wall Street.
- Near-term put volume accelerated on
Cisco Systems, Inc. (CSCO)
, as one group of traders zeroed in on the December series of
Bank of America Corp's (BAC)
positive price action -- sparked by today's jobs data -- may have
lured a bevy of call players to the options pits.
For a look at today's options movers and commodities
activity, head to page 2.
Crude futures edged higher today, as this morning's strong jobs
data lifted hopes for increased energy demand. By the time the dust
settled, the December contract tacked on 40 cents, or 0.4%, to
close at $94.60 per barrel. On a weekly basis, crude remained
Meanwhile, gold futures declined, as today's employment report
bolstered tapering anxieties. December-dated gold fell $23.90, or
1.8%, to finish at $1,284.60 per ounce -- the lowest price for a
most active contract since mid-October. For the week, the precious
metal lost 2.2%.