Stocks Finish Mixed Following U.S. Manufacturing News

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"The realization that the U.S. economy isn't going to go straight off a cliff was a nice change," commented Schaeffer's Senior Technical Strategist Ryan Detrick. "The ISM manufacturing survey came in better than expected and actually showed growth in September. Given all the gloom-and-doomers out there, today's news helped us to have a rare 'up' Monday." Indeed, the Dow Jones Industrial Average (DJI) rallied more than 160 points at its session peak, knocking on the 13,600 doorstep.

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

The Dow Jones Industrial Average (DJI - 13,515.11) climbed to an intraday best of 13,598.25 just before lunchtime, but pared more than half of this gain by the closing bell. The blue-chip barometer was limited by its 10-day moving average, racking up a near 78-point, of 0.6%, rise. Only four of the Dow's 30 components landed in the red, with Microsoft Corporation ( MSFT ) 0.9% decline leading the way. On the other hand, UnitedHealth Group Inc. (UNH) pace the 26 outperforming issues with a 1.9% upswing.

S&P 500 Index (SPX - 1,444.49)

The Nasdaq Composite (COMP - 3,113.53) couldn't maintain its early lead, and fell just 2.7 points, or a tenth of a percent. The tech-rich COMP did, however, found support from its rising 32-day trendline.

The CBOE Market Volatility Index (VIX - 16.32) launched above its 50-day moving average today, adding 0.6 points, or 3.8%.

Today's highlight : "Forget the headlines, what I'm impressed with is yet another company getting bought out at a massive premium," noted Detrick. "3M Co (MMM) purchased Ceradyne, Inc. (CRDN) for a 43% premium. Mergers and acquisitions activity is very longer-term bullish and we continue to see some very nice deals getting done."

"These transactions show that companies are able to get financing, which also suggests that credit markets are improving. And at the same time, it shows that companies have the confidence to actually step up and make a deal. So much of this rally has been about improving confidence and this is another step in that direction."

Turning to today's major market stories...

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

Oil futures turned higher for a third straight day, as the commodity was buoyed by positive U.S. manufacturing data and a slouching greenback. While equities rallied, November-dated crude bumped up 29 cents, or 0.3%, to close at $92.48 a barrel.

The upbeat manufacturing report also boded well for gold futures, lifting the commodity to its loftiest price since March. A weaker dollar, as well as comments by Federal Reserve Bank of Chicago President praising the latest round of QE3, solidified gains for the precious metal. Against this backdrop, gold for December delivery gained $9.40, or 0.5%, to settle at $1,783.30 an ounce.

Levels to watch in trading...

  • Dow Jones Industrial Average (DJI - 13,515.11) - support at 11,500; resistance at 14,000
  • S&P 500 Index (SPX - 1,444.49) - support at 1,100; resistance at 1,500
  • Nasdaq Composite (COMP - 3,113.53) - 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.

All Rights Reserved. Unauthorized reproduction of any SIR publication is strictly prohibited.


This article appears in: Investing , Options

Referenced Stocks: GMCR , MAR , MSFT , QQQ , S

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