Payrolls and Service Sector Data Keep Market Afloat

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The Dow Jones Industrial Average (DJI) endured a 97-point swing today, touching the 13,536.27 level just before noon. "We had some positive U.S. data from the ADP payrolls report and ISM service report, but the market's gains were pared as the day progressed," said Schaeffer's Senior Technical Strategist Ryan Detrick. "The reality is, with the monthly jobs data out on Friday, traders were leery of making any big bets ahead of this report."

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

Dow Jones Industrial Average (DJI - 13,494.61) Hewlett-Packard Company ( HPQ ) HD

Both the S&P 500 Index (SPX - 1,450.99) and Nasdaq Composite (COMP - 3,135.23) maintained their early momentum and crossed the finish line with modest gains. The SPX lifted 5.2 points, or 0.4%, while the COMP turned higher by 15.2 points, or 0.5%.

The CBOE Market Volatility Index (VIX - 15.43) saw time on both sides of breakeven today, but finally found a perch in negative territory. The VIX posted a daily deficit of 0.3 point, or 1.8%

Today's highlight : "One concern of mine is that small caps lagged today and have been lagging for a few weeks," said Detrick. "Usually this suggests the market is due for a pullback, as the 'risky' small-cap names are underperforming."

"At the same time, housing did great today. We've liked housing all year here at Schaeffer's, and today's action suggests those names could be getting ready for another surge higher very soon."

Turning to today's major market stories...

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

Oil futures racked up a second straight loss today, as global demand concerns took a front seat to a surprise drop in domestic inventories. Against this backdrop, crude for November delivery peeled back $3.75, or 4.1%, to land at $88.14 a barrel -- its lowest level since July 31.

Better-than-expected service-sector and employment data helped gold futures to a narrow victory today, as speculators appeared to up their positions on the commodity as an inflationary hedge. By the close, December-dated gold added $4.20, or 0.2%, to finish at $1,779.80 an ounce.

Levels to watch in trading...

  • Dow Jones Industrial Average (DJI - 13,494.61) - support at 11,500; resistance at 14,000
  • S&P 500 Index (SPX - 1,450.99) - support at 1,100; resistance at 1,500
  • Nasdaq Composite (COMP - 3,135.23) - 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.

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This article appears in: Investing , Options

Referenced Stocks: AN , ESRX , HD , HPQ , LULU

Schaeffer's Investment Research

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