"The budget deal out of Washington was officially passed in the
House of Representatives, and will now head over to the Senate,"
said Schaeffer's Senior Equity Analyst Joe Bell, CMT. "For all the
attention this received a couple of months ago, it has kind of
flown under the radar, and isn't affecting the market too much.
Most major indices climbed off their lows throughout the day, but
the rally was relatively minimal." Meanwhile, as investors eye next
week's Federal Open Market Committee (FOMC) meeting, the
Dow Jones Industrial Average (DJI)
snapped its daily losing streak, but finished the week in negative
Continue reading for more on today's market, including
Producer prices declined for a third consecutive month, Adobe
Systems Incorporated (
) enjoyed a post-earnings jump, and short-term puts were active on
Cisco Systems, Inc. (
Dow Jones Industrial Average (DJI - 15,755.36)
experienced some choppy price action today, but finished the day
15.9 points, or 0.1%, higher. For the week, however, the blue-chip
bellwether fell 1.7%. The Dow's 14 advancers were led by Visa Inc's
) 1.9% gain, while a 1.4% decline for Microsoft Corporation (
) paced the 15 laggards. Pfizer Inc. (PFE) remained unchanged.
S&P 500 Index (SPX - 1,775.32)
followed a similar path as the Dow for much of the day, but edged
0.2 point, or 0.01%, lower by the close. Meanwhile, the
Nasdaq Composite (COMP - 4,000.98)
advanced 2.6 points, or 0.1%, for the session. Week-over-week, the
indexes shed 1.6% and 1.5%, respectively.
CBOE Volatility Index (VIX - 15.76)
sank to an intraday low of 15.06 right out of the gate this
morning, but muscled its way higher during the afternoon to close
0.2 point, or 1.4%, higher. On a weekly basis, the "fear gauge"
A Trader's Take
"Once again, small-caps took a leadership role today, after
performing poorly in the early part of this month," Bell continued.
"It was nice to see this group show some strength, and it might be
a good sign as we now turn to the second half of December, which
has historically been a very strong time for the market."
3 Things to Know About Today's Market
- In a 332-94 vote, the House of Representatives
approved the budget agreement
proposed by Paul Ryan (R-Wis.) and Patty Murray (D-Wash.). The
plan -- which will be voted on by the Senate early next week --
would provide the government with some much-needed stability over
the next two years.
- The Labor Department said the
producer price index (PPI)
fell by 0.1% in November, marking a third straight monthly
decline. Meanwhile, core PPI -- which excludes food and energy
0.1% last month. On a year-over-year basis, PPI and core PPI are
were up 0.7% and 1.3%, respectively.
- Adobe Systems Incorporated (
) reported a
fiscal fourth-quarter profit
of $65.3 million, or 13 cents per share, down from $222.3
million, or 44 cents per share, in the year-ago period. Excluding
items, earnings arrived at 32 cents per share, matching consensus
estimates. Meanwhile, revenue fell 9.6% to $1.04 billion --
slightly above analysts' projections. However, the shares rallied
to an all-time high today thanks to news of a 22% spike in
Creative Cloud subscribers.
5 Stocks We Were Watching Today
Google Inc (GOOG)
scored some bullish brokerage attention at Evercore Partners
ahead of this morning's opening bell.
- The latest
Option Idea of the Week
Southwest Airlines Co. (LUV)
could be poised for near-term gains.
- Bearish bettors swarmed
Cisco Systems, Inc. (
, after the firm slashed its fiscal 2014 revenue guidance
General Electric Company (GE)
put volume surged, despite news that the diversified conglomerate
raised its quarterly dividend.
- Upbeat November sales news triggered a surge for
Electronic Arts Inc. (EA)
, but that didn't keep option bears at bay.
For a look at today's options movers and commodities
activity, head to page 2.
Crude futures declined today, as tapering fears -- along with
concerns of increasing oil supplies in Libya -- dragged prices
lower. By session's end, the January contract shaved off 90 cents,
or 0.9%, to finish at $96.60 per barrel. For the week, crude fell
Conversely, gold futures managed a daily gain, as investors
await the outcome of next week's Federal Open Market Committee
(FOMC) meeting. February-dated gold added $9.70, or 0.8%, to close
at $1,234.60 an ounce. On a weekly basis, the precious metal edged
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