"The markets got off to a rough start, but managed to climb
their way out of the trenches and finish in the green," observed
Schaeffer's Senior Equity Analyst Joe Bell. The
Dow Jones Industrial Average (DJI)
dipped below 14,000 early on before the bulls retook control,
helping the market cruise to modest gains for the day and the week.
Continue reading for more on today's market, including
- Is Facebook (
still a buy
? Our Senior Options Strategist Tony Venosa, CMT, breaks down the
case in 10 easy steps.
- Our Senior Trading Analyst Bryan Sapp reflects on how the
saved the day
Option Idea of the Week
hopes to capitalize on strength in Constellation Brands (
- A positive finish for the week, failed compromise in
Washington, and bullish speculation on Bank of America (
Although a new record high wasn't in the cards, it was a
victorious day for the
Dow Jones Industrial Average (DJI)
, as it rebounded from an earlier loss to close up 35 points, or
0.3%, at 14,089.66 -- a 0.6% gain for the week. Eighteen of the
Dow's 30 members finished higher, led by Wal-Mart Stores (
) and Walt Disney (
), which each added 1.4%. Bringing up the rear was Caterpillar
(CAT), swallowing a 1.1% loss.
S&P 500 Index (SPX)
also closed higher, up 3.5 points, or 0.2%, at 1,518.20. The
Nasdaq Composite (COMP)
added 9.6 points on the day, or 0.3%, to finish the week at
3,169.74. Since last Friday's close, the SPX is up 0.2% while the
COMP has gained 0.3%.
CBOE Market Volatility Index (VIX)
suffered a modest pullback, shedding 0.2 point, or almost 1%, to
settle at 15.36. For the week, the index added 8.4%.
A Trader's Take
"Much of the intraday reversal followed a slew of mixed economic
data early on," noted Bell. "The most positive report had to be the
better-than-expected February ISM manufacturing index, which came
in at its highest level since June 2011. Meanwhile," he continued,
"we have finally reached the March 1 spending-cut deadline and it
doesn't appear the world is going to come to an end. Although most
people aren't expecting any sort of last-minute agreement tonight,
the markets still churned higher."
3 Things to Know About Today's Market
- President Obama held a press conference,
blaming Congressional Republicans
for a failed compromise on automatic spending cuts that begin at
midnight. The commander in chief warned that the "pain" felt from
the so-called sequester "will be real."
- Personal income
dropped 3.6% in January
, the steepest one-month decline in two decades. Consumer
spending, meanwhile, edged up 0.2%.
- David Einhorn has
abandoned his lawsuit
against Apple Inc. (AAPL). The hedge fund manager had been hoping
to coerce the iPhone parent into issuing preferred stock, or
otherwise sharing its cash among shareholders.
5 Stocks We Were Watching Today
- Short-term Bank of America (
) option bulls
bucked the trend
- Weekly option buyers
Cisco Systems (CSCO).
- Ciena Corporation (CIEN) was
targeted by call buyers
ahead of next week's earnings report.
- Pandora Media (P)
earned an upgrade
after announcing a change to its free streaming music
- A Yahoo! (YHOO) speculator
rolled a covered call position
up and out.
For a look at today's options movers and commodities
activity, head to page 2.
Broad economic concerns -- highlighted by disappointing
manufacturing numbers from China -- sparked a sell-off in crude
futures today. The April contract for oil lost $1.37, or 1.5%, to
settle at $90.68 per barrel, another new year-to-date low. For the
week, black gold gave back 2.6%.
Rising equities again had negative repercussions for gold
futures, sending April-dated gold down $5.80, or 0.4%, at $1,572.30
per ounce, the lowest close for a front-month contract since
mid-July. Week over week, gold was just fractionally below last
Friday's settlement price of $1,572.80 an ounce.
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
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