"Well, the dreaded government shutdown finally came, and the
market seemed like it barely shrugged," observed Schaeffer's Senior
Equity Analyst Joe Bell, CMT. "After a lot of early panic selling
yesterday, many buyers have come to the table and bid this market
up a bit. Although a resolution to this issue would benefit all
parties, the market seems to be remaining patient for a solution to
come forward soon." Meanwhile, the
Dow Jones Industrial Average (DJI)
spent most of the session in positive territory, and managed to
finish north of breakeven.
Continue reading for more on today's market, including
- Our founder and CEO reflects on why the market moved higher
despite news of a government shutdown in
Bernie Schaeffer on Charts
- In light of today's shutdown headlines, Schaeffer's Senior
Trading Analyst Bryan Sapp opines that the market's
"path of least resistance"
is to the upside.
- Today's edition of
highlights recent options activity for a satellite radio concern,
as well as two electronics retailers.
The president offered his thoughts on the government shutdown,
the ISM's purchasing managers index (PMI) hit its highest level in
over two years, and Cree's (
) analyst-induced price spike attracted near-term call buyers.
For the most part, the
Dow Jones Industrial Average (DJI - 15,191.70)
trended higher today, touching a session high of 15,208.40 shortly
after noon. By the closing bell, the Dow was up 62 points, or 0.4%.
The blue-chip barometer's 21 gainers were led by Merck's (
) 2.4% advance, while Wal-Mart (
) paced the nine decliners with a loss of 0.5%.
S&P 500 Index (SPX - 1,695.00)
was parked in the green for the entire session, cruising to a
session peak of 1,696.55 around midday. By the end, the index was
13.5 points, or 0.8%, higher. Meanwhile, the
Nasdaq Composite (COMP - 3,817.98)
gained 46.5 points, or 1.2%, and tagged a new 13-year high in
CBOE Market Volatility Index (VIX - 15.54)
fell right out of the gate, and remained in negative territory for
the rest of the day. At the close, the "fear gauge" was 1.1 points,
or 6.4%, lower.
A Trader's Take
"The rally has really been broad-based," noted Bell. "As the
fourth quarter begins, almost every major sector showed strength
3 Things to Know About Today's Market
- On the heels of the much-discussed
-- which went into effect at the stroke of 12 last night and is
the first in 17 years -- President Barack Obama admonished House
tea party members for fixating on health-care reform rather than
the bigger picture. Congress voted against a proposed funding
bill to delay the Affordable Care Act, which was still
implemented today, despite the latest developments. Obama also
stated that if Congress does not raise the debt ceiling ahead of
Oct. 17, it could possibly result in an economic shutdown.
Elsewhere, the monthly jobs report -- originally scheduled for
Friday morning --
will be delayed amid the shutdown
, due to the scarce number of Labor Department officials
reporting for duty.
(CNBC; USA Today)
- The Institute for Supply Management (ISM) said its
purchasing managers index
rose to 56.2 in September from the previous month's reading of
55.7. The latest figure not only marked the index's highest level
since April 2011, but also managed to exceed consensus estimates
for a reading of 55.0.
- Automaker Ford (
) reported a 5.8% year-over-year increase in
today -- notching its best September in seven years to top
analysts' estimates. Meanwhile, General Motors (
) said auto sales dropped 11% from the year-ago period, falling
short of consensus expectations.
5 Stocks We Were Watching Today
received some bullish attention at Societe Generale and
BofA-Merrill-Lynch in pre-market action.
- Near-term bulls rolled the dice on
once again by purchasing weekly call options.
- Call volume ramped up on
Green Mountain Coffee Roasters (GMCR)
, as traders bet on extended gains by week's end.
analyst-induced rally triggered some front-month call-buying
activity in the options pits.
- Put players converged on
General Motors (
after the auto giant's aforementioned domestic sales news.
For a look at today's options movers and commodities
activity, head to page 2.
Crude futures finished slightly lower today, having eased
earlier losses triggered by the government shutdown. By the closing
bell, November-dated oil was off 29 cents, or 0.3%, to settle at
$102.04 per barrel.
Meanwhile, gold futures suffered their worst close since Aug. 7,
as expectations for a short-lived shutdown did nothing to boost the
precious metal's "safe-haven" appeal. Gold for December delivery
declined $40.90, or 3.1% -- the largest dollar drop for a
front-month contract since late June -- to end at $1,286.10 an
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