"Well, well, well ... the bulls came back with a vengeance
today," chuckled Schaeffer's Senior Technical Strategist Ryan
Detrick, CMT, of a day which saw the
Dow Jones Industrial Average (DJI)
gain 323 points and retake the 15,000 level. "All it took was some
hope that a short-term debt limit increase could be in the cards to
allow more time to work through budget negotiations (which,
incidentally, they've had two years to work on). Nonetheless, the
market took this as great news. Sure, the government is closed, but
that was never really the issue. The big concern the whole time has
been the debt ceiling. The market hates uncertainty, and this 'kick
the can' approach has removed some of that."
Continue reading for more on today's market, including
The nation's leaders promise to get down to business --
following stern words from Treasury Secretary Jack Lew -- and
) gets a boost.
Dow Jones Industrial Average (DJI - 15,126.07)
popped higher out of the gate and continued to gain ground all the
way through the closing bell, where it settled at its intraday
high. The blue-chip index added 323.1 points, or 2.2%, and moved
back above the 15,000 mark following three consecutive closes below
this key level. All 30 Dow names closed in the black, but Boeing (
) was the top performer, rallying 3.9% on the day. At the back of
the pack was Chevron (
), which logged a modest gain of 0.2%.
S&P 500 Index (SPX - 1,692.56)
also finished at its intraday high-water mark, adding 36.2 points,
or 2.2%, to retake its 80-day moving average. The
Nasdaq Composite (COMP - 3,760.75)
ended the session just shy of its respective intraday peak, but
still posted a gain of 83 points, or 2.3%.
CBOE Market Volatility Index (VIX - 16.48)
tumbled sharply at the outset, closing with a loss of 3.1 points,
or 15.9%. The market's fear gauge is solidly below its 10-day
moving average for the first time since Sept. 20.
A Trader's Take
"As dour as things looked these last few days, just like that
... the S&P 500 Index (SPX) has a real shot at closing in the
black for the week," noted Detrick. "Now one thing to remember is
that big up days historically happen in bear markets, so that is
something to think about here. Any bad news tomorrow could change
everything, and in a hurry, so be on your toes as we head into the
3 Things to Know About Today's Market
- There were
signs of forward momentum
in Washington today, as House Speaker John Boehner, R-Ohio,
proposed a temporary debt-ceiling hike on behalf of his party, in
exchange for budget negotiations. Talks will take place at the
White House later this afternoon, as the two parties are
scheduled to convene shortly after 4:30 p.m. ET.
- Treasury Secretary Jack Lew
testified before the Senate Finance Committee
this morning, warning of the "potentially catastrophic impacts"
of a default, should lawmakers not forge a mutually agreeable
solution ahead of the Oct. 17 debt-ceiling deadline. Lew
reiterated President Obama's refusal to discuss certain budget
items until the government shutdown is lifted and the debt
(New York Daily News)
- Initial jobless claims
tagged a six-month high
of 374,000 last week (on a seasonally adjusted basis), as
gridlock in Washington had a trickle-down effect outside of the
federal sector. Also impacting the figure was a continued
technical glitch in California -- the state solely accounted for
about half of last week's 66,000 new claims. Excluding these
extenuating factors, claims rose to roughly 325,000.
5 Stocks We Were Watching Today
- A bullish brokerage note helped
reclaim the $300 mark.
- Put buyers circled
ahead of earnings.
- Option bulls pounced on
DryShips Inc. (DRYS)
, looking for short-term gains.
Advanced Micro Devices (AMD)
short sellers may be picking up January-dated calls for
- Activity in the
options pits heated up, with the primary focus on very short-term
For a look at today's options movers and commodities
activity, head to page 2.
Oil prices bounced back from Wednesday's decline, after the
Organization of the Petroleum Exporting Countries (OPEC) disclosed
a drop in output, and tensions flared in the Middle East. By the
close, oil futures for November delivery had gained $1.40, or 1.4%,
to settle at $103.01 per barrel.
Gold futures, however, retreated lower as the rally in equities
lessened the appeal of the yellow metal. December-dated gold lost
$10.30, or 0.8%, to settle at $1,296.90 an ounce, the contract's
first close south of $1,300 since Oct. 1.