"We had a pretty nice day today, as the momentum continues to
resolve itself to the upside," noted Schaeffer's Senior Equity
Analyst Joe Bell, CMT. "Every day is exactly the same story with
Washington, as market participants continue to hope that some sort
of resolution will arrive in time. Right now, many are very
hopeful, after news surfaced that the House of Representatives and
Senate are confident of a bill passing tonight." Against this
Dow Jones Industrial Average (DJI)
finished notably higher by the closing bell, recouping all of
Continue reading for more on today's market, including
- With a temporary debt ceiling deal in the works, Schaeffer's
Senior Trading Analyst Bryan Sapp identifies three
"levels of interest"
to watch on the S&P 500 Index (SPX).
- The latest
Chart of the Day
highlights nine reasons why Cisco Systems (
) could be headed lower, courtesy of our Senior Options
Strategist Tony Venosa, CMT.
- This week's installment of
examines recent trading activity surrounding three well-known
The Senate hammered out a temporary debt ceiling agreement,
Fitch Ratings warned the U.S. government of a potential credit
downgrade, and Citigroup's (
) dismal earnings sparked a round of bearish brokerage notes.
Dow Jones Industrial Average (DJI - 15,373.83)
spiked higher at the sound of the opening bell, tagging a session
high of 15,374.15 around midday. By the close, the index was just
off this intraday acme, up 205.8 points, or 1.4%. JPMorgan Chase (
) led the Dow's 27 advancers, gaining 3.2%, while Cisco Systems (
) paced the three laggards with an analyst-induced decline of
S&P 500 Index (SPX - 1,721.54)
surged right out of the gate, and ended the session with an advance
of 23.5 points, or 1.4% -- just shy of its intraday peak, and back
atop the 1,700 mark. Meanwhile, the
Nasdaq Composite (COMP - 3,839.43)
finished 45.4 points, or 1.2%, higher, and notched a new 13-year
intraday high of 3,840.48.
CBOE Volatility Index (VIX - 14.71)
tumbled at the start of the session, sinking to an intraday low of
14.67 during the final minutes of trading. The "fear gauge" ended
up shedding 4 points, or 21.2%, on the day -- for lowest close
since late September.
A Trader's Take
"We finally got a little bit of clarity and some hope," Bell
continued. "Barring an unforeseen event, it seems like a bill will
pass that pushes the debt ceiling back a few months, and keeps the
government funded for the time being."
3 Things to Know About Today's Market
- Senate leaders reached an agreement today that would
end the government shutdown and lift the debt
, albeit temporarily. The deal -- which would reopen the
government through Jan. 15 and enable the U.S. to pay its bills
through Feb. 7 -- will be voted on by the Senate tonight, after
which it will be sent to the House of Representative for final
approval before moving to President Barack Obama's desk. "It has
been a long, challenging few weeks for Congress and for the
country," said Minority Leader Mitch McConnell, R-Ky. "It is my
hope that today we can put some of those most urgent issues
- The Fed's
revealed slower economic growth in Philadelphia, Richmond,
Chicago, and Kansas City during September and early October, with
just a handful of reports indicated any impact from the
government shutdown. Meanwhile, growth in the remaining eight
banking districts remained nearly flat. From an overall
perspective, the survey noted "modest to moderate" growth, which
was in keeping with earlier 2013 reports.
- The U.S. government found its
AAA debt rating in jeopardy
this morning, after Fitch Ratings put Treasury bonds on Rating
Watch Negative -- a move that sometimes precedes a downgrade. The
firm issued a statement saying, "The prolonged negotiations over
raising the debt ceiling ... risks undermining confidence in the
role of the U.S. dollar as the preeminent global reserve
currency, by casting doubt over the full faith and credit of the
5 Stocks We Were Watching Today
received a round of price-target hikes following the release of
its third-quarter earnings report yesterday.
- A management change at
triggered a flurry of short-term call activity in the tech
giant's options pits.
- After revealing a 17% drop in quarterly profits on Tuesday,
was slapped with a slew of price-target cuts.
ARM Holdings (ARMH)
prepares to unveil quarterly earnings next week, sentiment toward
the stock has been bearishly skewed.
- Weekly option bulls snapped up
Sirius XM Radio (SIRI)
calls with hopes of a post-earnings surge for the satellite radio
For a look at today's options movers and commodities
activity, head to page 2.
Crude futures recovered most of yesterday's losses, thanks to a
Senate deal that could end the government shutdown and lift the
debt ceiling. By the closing bell, the November contract added
$1.08, or 1.1%, to finish at $102.29 per barrel.
Meanwhile, the same headlines propelled gold futures to their
loftiest settlement price since Oct. 10. December-dated gold rose
$9.10, or 0.7%, to end at $1,282.30 an ounce.
All Rights Reserved. Unauthorized reproduction of any SIR publication is strictly prohibited.