"It's no big shock, but today has once again been all about
Washington," said Schaeffer's Senior Equity Analyst Joe Bell, CMT.
"This morning, shares sold off sharply after officials failed to
come to an agreement on the debt ceiling and government shutdown.
The poor price action didn't last long, though, as shares rallied
after speculation that President Barack Obama and lawmakers from
both sides were meeting at the White House." Although this meeting
ended up being postponed, the
Dow Jones Industrial Average (DJI)
finished solidly north of breakeven.
Continue reading for more on today's market, including
- Schaeffer's Senior Trading Analyst Bryan Sapp explains why
"stocks look poised for more upside,"
barring any negative developments this week.
- In his latest
Chart of the Day
, our Senior Options Strategist Tony Venosa, CMT, takes a closer
look at trading prospects for Steel Dynamics (
- This week's edition of
covers two outperforming solar stocks that could benefit from
A meeting between President Barack Obama and congressional
leaders was postponed, Netflix (
) climbed higher on cable partnership talks, and Advanced Micro
) scored some bullish analyst attention ahead of earnings.
Dow Jones Industrial Average (DJI - 15,301.26)
faltered right out of the gate, touching an intraday low of
15,136.38 within the first five minutes of trading. By the close,
however, the index was up 64.2 points, or 0.4%. The Dow's 22
advancers were led by Pfizer's (
) 2.2% gain, while Merck's (
) 1.1% decline paced the eight laggards.
S&P 500 Index (SPX - 1,710.14)
followed a similar intraday path as its blue-chip brethren,
finishing 6.9 points, or 0.4%, higher. Meanwhile, the
Nasdaq Composite (COMP - 3,815.27)
added 23.4 points, or 0.6%.
CBOE Volatility Index (VIX - 16.07)
spiked at the start of the session, but pared its gains to close
just 0.4 point, or 2.2%, above breakeven.
A Trader's Take
"Despite the continued confusion coming from Washington, this
market has remained incredibly resilient," Bell went on. "In fact,
the Russell 2000 (RUT) touched a new all-time high, as small-caps
continue to show strong leadership."
3 Things to Know About Today's Market
- President Barack Obama told reporters today that while
"progress" has been made
toward a deal to raise the debt ceiling before the Oct. 17
deadline, he cautioned that nothing is final "until the details
are done." However, this afternoon's
meeting with bipartisan congressional leaders
was postponed to "allow leaders in the Senate to continue to make
important progress towards a solution that raises the debt limit
and reopens the government," according to the White House.
(USA Today, MarketWatch)
- Netflix (
) trended higher today, amid buzz that the streaming video
service is in talks to
provide content to a few cable providers
, according to inside sources. Negotiations with Suddenlink
Communications are allegedly underway, while preliminary
discussions have also transpired with Comcast (CMCSA) and Time
Warner Cable (TWC). By creating ties with cable companies, NFLX
would enable viewers to find content without switching to a
- Eugene Fama, Lars Peter Hansen, and Robert Shiller found
themselves in the limelight, as the trio was
awarded the 2013 Nobel prize for economics
. Fama and Hansen are professors at the University of Chicago,
while Shiller -- of the S&P/Case-Shiller housing price index
fame -- is a professor and fellow at Yale University. "There is
no way to predict the price of stocks and bonds over the next few
days or weeks," said the Royal Swedish Academy of Sciences, "but
it is quite possible to foresee the broad course of these prices
over longer periods, such as the next three to five years. These
findings ... were made and analyzed by this year's Laureates."
5 Stocks We Were Watching Today
Advanced Micro Devices (
received some bullish analyst attention this morning, ahead of
Thursday's turn in the earnings confessional.
- Near-term option buyers set their sights on
, with a particular focus on the tech giant's October-dated
Wells Fargo (WFC)
was hit with a round of price-target cuts, despite reporting
stronger-than-expected quarterly earnings last Friday.
- Weekly put activity surged on
, as the retailer prepares for tomorrow's annual investment
saw a spike in put volume, as speculators forecast a decline
following tomorrow's quarterly earnings report.
For a look at today's options movers and commodities
activity, head to page 2.
Crude oil finished slightly higher today, lifted by hopes that
talks between President Barack Obama and congressional leaders
would result in a debt-ceiling resolution. By the closing bell, the
November contract added 39 cents, or 0.4%, to end at $102.41 per
Gold futures also advanced, fueled by the same optimism for an
end to the debt-ceiling stalemate. December-dated gold rose $8.40,
or 0.7%, to finish at $1,276.60 an ounce.
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