Dow Jones Industrial Average (DJI)
got off to a rough start this morning, but a stronger-than-expected
earnings report from one blue chip provided a happy distraction
from global economic concerns -- albeit only temporarily. While the
"fiscal cliff" was out of sight for a bit, it wasn't out of mind
for long. Even as President Obama began meeting with key
congressional players and labor leaders to avert the crisis --
which would trigger $607 billion in spending cuts and tax hikes
come January -- Wall Street remained wary, with the major market
indexes back below breakeven by the close.
Continue reading for more on today's market events,
Everything You Need to Know
: Your one-stop shop for levels to watch, economic data, earnings
reports, stocks on the move, and commodities action.
Dow Jones Industrial Average (DJIA)
explored both sides of breakeven today, trading in a range of
nearly 150 points. By the time the dust settled, the blue-chip
barometer was about 59 points, or 0.5%, lower, marking its first
finish south of 12,800 since July 25. Only six of the Dow's 30 blue
chips bucked the trend, led by
Home Depot's (
earnings-induced gain of 3.6%. On the flip side,
paced the declining majority, giving up 3.2% in the wake of a
In similar fashion, the
S&P 500 Index (SPX)
found itself back in the red in the final hour of trading, settling
on a loss of 5.5 points, or 0.4%. Likewise, the
Nasdaq Composite (COMP)
fared the worst of its peers, swallowing a loss of 20.4 points, or
CBOE Market Volatility Index (VIX)
also flirted with both gains and losses, but ultimately finished
roughly 0.2% lower.
A Trader's Take
"What can you say? It was a disappointing day," noted Senior
Technical Strategist Ryan Detrick. "In the end, the bears took it
to the bulls once again. One thing we noted on our trading floor
was how weak the bounce seemed earlier in the day. Internals were
weak and volume wasn't anything to get excited about, either. In
the end, there were more disappointed bulls."
On the other hand, he said, "Home Depot had some really good
earnings and gapped to a new high. It was nice to see a big blue
chip finally have something good to say."
Economic and Earnings News
The U.S. government ran a deficit of $120 billion in October --
marking an increase of 21.8% from September, and exceeding the
$113-billion figure expected by the Congressional Budget Office. On
an adjusted basis, Treasury officials said the October deficit
would be $130 billion, compared to $129 billion in October
More Stocks Making News
For today's activity in commodities, options, and more, head
to page 2.
In the Options Pits
Crude futures tumbled again today, after the International
Energy Agency (IEA) cut its current-quarter forecast for global oil
demand. Specifically, the agency said global oil consumption will
average 90.1 million barrels a day in the fourth quarter, down 0.3%
from previous estimates. By the close, December-dated oil shed 19
cents, or 0.2%, to finish at $85.38 per barrel. Elsewhere, cold
weather in the Eastern U.S. and hopes for rebounding demand in the
Northeast were boons for natural gas, with the front-month contract
rallying 4.7% to settle at $3.74 per million British thermal
Meanwhile, gold futures also finished lower, as a strengthening
greenback weighed on the dollar-denominated commodity. By the time
the dust settled, gold for December delivery gave up $6.10, or
0.4%, to end at $1,724.80 an ounce.
Levels to watch in trading...
Dow Jones Industrial Average (DJI - 12,756.18)
- support at 12,000; resistance at 13,300
S&P 500 Index (SPX - 1,374.53)
- support at 1,320; resistance at 1,430
Nasdaq Composite (COMP - 2,883.89)
- support at 2,775; resistance at 3,000
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.
All Rights Reserved. Unauthorized reproduction of any SIR publication is strictly prohibited.