"With earnings season winding down and the next Fed meeting five
weeks away, traders pretty much took today off," observed
Schaeffer's Senior Technical Strategist Ryan Detrick, CMT.
"Nonetheless, there are still some big names set to report earnings
this week, so be open to some individual stocks showing
volatility." After spending time on both sides of breakeven, the
Dow Jones Industrial Average (DJI)
settled with a minor gain.
Continue reading for more on today's market, including
Rising buzz about a big tech IPO, reassuring words from a
central banker, and a bullish session for steel stocks.
Dow Jones Industrial Average (DJI - 15,639.12)
traded in a relatively narrow 70-point range before settling on a
gain of 23.6 points, or 0.2%. Twenty Dow components ended in the
black, led by Exxon Mobil (
) and its 2.5% gain. Among the 10 decliners, DuPont (
) led the way with a 1.3% loss. The blue-chip index has now
finished four of the last five sessions above the 15,600 level.
S&P 500 Index (SPX - 1,767.93)
tacked on 6.3 points, or 0.4%, to extend a short-term rise along
its 10-day moving average. Finally, the
Nasdaq Composite (COMP - 3,936.59)
added 14.6 points, or 0.4%, and settled less than 1 point from its
CBOE Volatility Index (VIX - 12.93)
turned south, shedding 0.4 point, or 2.6%. This marked the first
close below 13 for the "fear index" since Aug. 13.
A Trader's Take
"Small-caps lagged last week, but bounced back in a major way
today," said Detrick. "With the Dow pretty much flat, the
Russell 2000 Index (RUT - 1,108.28)
was actually up more than 1%. We've seen small-cap strength all
year, and don't expect it to end just yet. The recent dip could be
yet another nice time to accumulate the strongest group this year.
Also," Detrick added, "the action in steel is just eye-opening.
Names like United States Steel Corporation (
) and AK Steel Holding Corporation (AKS) had huge days, breaking
out to new highs. Steel was a big-time laggard all year, but now
we're seeing money rotate into this influential group."
3 Things to Know About Today's Market
- Twitter Inc (NYSE:
) today raised the pricing for
Thursday's initial public offering (IPO)
to a range between $23 and $25 per share. Now, with a predicted
value of $1.932 billion, the microblogging pioneer's debut is on
pace to surpass the size of Google's (GOOG) 2004 IPO.
- The Federal Reserve doesn't need to rush headlong into any
, according to St. Louis Fed President James Bullard. "For me,
you don't have to be in a hurry because of low inflation," said
Bullard in an interview.
- Steve Cohen's SAC Capital will pay a
$1.8 billion fine
as part of a guilty plea to criminal insider trading charges,
said federal prosecutors. The deal doesn't include any immunity
provisions, which means Cohen himself may eventually face
5 Stocks We Were Watching Today
AK Steel Holding Corporation (AKS)
rallied onto the radar of call traders following a Goldman Sachs
upgrade to "buy."
- An upwardly revised forecast from
Canadian Solar (CSIQ)
sent the stock soaring to a multi-year high, much to the surprise
of option bears.
- Long-term calls were active on
Ford Motor Company (F)
, continuing a broader trend toward bullish bets on the
- One moderately upbeat speculator opened a long call spread on
Microsoft Corporation (MSFT)
- With its earnings report just around the corner,
NVIDIA Corporation (NVDA)
was hit by a negative analyst note.
For a look at today's options movers and commodities
activity, head to page 2.
Oil futures ended higher today, snapping a four-session slump --
if only by the slimmest of margins. Crude for December delivery
edged up 1 penny, or 0.01%, to $94.62 per barrel, taking a break
from its recent supply-related slide.
Gold futures also advanced, with those accommodative remarks
from Bullard helping to stoke some buying interest. December-dated
gold climbed $1.50, or 0.1%, to finish at $1,314.70 per ounce.