"The key driver today seemed to be the global markets," noted
Schaeffer's Senior Trading Analyst Bryan Sapp. "Nearly every
European and Asian market closed lower for the session. However,
despite global markets selling off, Caterpillar Inc. (
) missing badly on earnings, and the news that China is tightening
its monetary policy, today's move lower was very muted, and
small-caps continued to outperform the other indexes." Meanwhile,
Dow Jones Industrial Average (DJI)
finished south of breakeven.
Continue reading for more on today's market, including
Caterpillar Inc. (
) reported a sharp drop in quarterly earnings, U.S. housing prices
rose less than anticipated in August, and Apple Inc. (
) secured a pair of price-target hikes.
Dow Jones Industrial Average (DJI - 15,413.33)
faltered almost right out of the gate, and touched an intraday low
of 15,366.19 around 10:00 a.m. ET following some troubling
developments out of China. By the close, the blue-chip barometer
was down 54.3 points, or 0.4%. The Boeing Company (
) led the Dow's eight advancers with an earnings-induced gain of
5.3%, while Caterpillar Inc. (
) paced the 21 decliners with a 6.1% loss -- spurred by its dismal
earnings report. The Coca-Cola Company (KO) remained unchanged.
S&P 500 Index (SPX - 1,746.38)
spent the session in negative territory, and finished 8.3 points,
or 0.5%, lower. Meanwhile, the
Nasdaq Composite (COMP - 3,907.07)
snapped its streak of new intraday records, losing 22.5 points, or
0.6%, by day's end.
CBOE Volatility Index (VIX - 13.42)
gained a bit of ground today to end 0.1 point, or 0.7%, higher,
after touching an intraday peak of 14.21. However, the "fear gauge"
is still on pace to finish a second consecutive week below its
20-week moving average.
3 Things to Know About Today's Market
- Caterpillar Inc. (
) said its
fell 44% to $1.45 per share, while revenue declined by 18% to
$13.42 billion. Elsewhere, fellow blue-chip component The Boeing
) reported a 16% surge in adjusted net income for the
, resulting in a per-share profit of $1.80. Meanwhile, sales rose
11% to $22.13 billion.
- The Federal Housing Finance Agency (FHFA) revealed that
house prices in the U.S.
edged just 0.3% higher in August, marking the narrowest advance
in nearly a year. Economists, on average, were expecting a gain
Overseas banking news
was an early market driver today, after it was reported that
several Chinese banks wrote off around $3.7 billion worth of bad
debt between January and June of this year.
5 Stocks We Were Watching Today
Apple Inc. (
scored a pair of price-target hikes after revealing the latest
versions of its iPad and iPad Mini yesterday.
- Call buyers bet on higher highs for
Nokia Corporation (NOK)
following the debut of the company's first tablet device.
- Put sellers flocked toward
Adobe Systems Incorporated (ADBE)
to wager on post-earnings support for the software concern.
Expedia Inc (EXPE)
saw a jump in put volume ahead of earnings, as traders focused on
the December series of options.
- Option bears forecast an extended slide for
Dendreon Corporation (DNDN)
following its turn in the earnings confessional next month.
For a look at today's options movers and commodities
activity, head to page 2.
Crude futures closed in the red once again, as a
larger-than-expected increase in oil supplies for the week ended
Oct. 18 weighed on prices. By the end of the session, the December
contract dropped $1.44, or 1.5%, to settle at $96.86 per barrel --
marking the lowest closing price for a most-active contract since
Meanwhile, gold futures also settled lower today, perhaps
consolidating after yesterday's multi-week high closing price.
December-dated gold lopped off $8.60, or 0.6%, to finish at $1,334
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