"We experienced a pretty steady decline today that was
relatively broad based," said Schaeffer's Senior Equity Analyst Joe
Bell, CMT. "One key piece of news was out of Washington, where the
House of Representatives passed a resolution to fund the government
through Dec. 15. While it may seem like good news on the surface,
most participants see very little chance of it passing through the
Senate." Also weighing on the markets were comments by St. Louis
Fed President James Bullard, who suggested the Fed could start
tapering at its meeting next month. As a result, the
Dow Jones Industrial Average (DJI)
finished the day in the red -- but still managed a weekly advance.
Continue reading for more on today's market, including
covers Warren Buffett, a strong opinion on Best Buy (
), and whether Pinterest has true business potential.
- As BlackBerry (
) prepares to report quarterly earnings next Friday,
made timely wagers on a near-term decline.
- This outperforming Internet stock has been plagued by a
bevy of pessimism
lately, despite tagging a new record high last week.
The House of Representatives passed a bill to defund Obamacare,
) debuted its new iPhones worldwide, and Facebook (
) saw a surge in call volume.
Dow Jones Industrial Average (DJI - 15,451.09)
was parked north of breakeven for less than 30 minutes this
morning, and then proceeded to drop throughout the day, touching a
session low of 15,448.09 just before the close. By the end, the
index shed 185.5 points, or 1.2%. On a weekly basis, however, the
blue-chip barometer added 0.5%. The Dow's three advancers were led
by Pfizer's (
) 0.5% gain, while Caterpillar (CAT) paced the 27 decliners with a
drop of 3.4%.
S&P 500 Index (SPX - 1,709.91)
suffered the same fate as its blue-chip brethren, and sank to its
own intraday low of 1,708.89 near the end of trading. By the
closing bell, the SPX was down 12.4 points, or 0.7%. Meanwhile, the
Nasdaq Composite (COMP - 3,774.73)
shaved off 14.7 points, or 0.4%. For the week, the indexes tacked
on 1.3% and 1.4%, respectively.
CBOE Market Volatility Index (VIX - 13.12)
experienced a notable drop this morning, but recovered later in the
day to finish less than 0.1 point, or 0.3%, lower. The "fear gauge"
lost 7.3% on the week.
A Trader's Take
"During a day like this, it pays to take a step back and
appreciate just how impressive the market has been in September so
far," Bell mused. "After an incredibly strong rally to start the
month, a little profit taking was bound to happen sooner or
3 Things to Know About Today's Market
- James Bullard weighed in on the Fed's decision
not to taper its asset purchases
at this time during an interview with Bloomberg television today.
The St. Louis Fed president said the central bank could take some
time in deciding when to scale back its bond-buying program due
to low inflation readings. "While I expect inflation to rise
during the coming quarters, I want to see evidence of such an
increase before endorsing less accommodative policy action by the
[Federal Open Market Committee]," he commented. However, Bullard
also noted that the Fed could start tapering at its next meeting,
if the next round of economic figures are strong enough.
- The Republican-skewed House of Representatives voted in favor
of a bill that will
strip funds away from Obamacare
, and reallocate them to the government. House Speaker John
Boehner (R-Ohio) called the vote a "victory" for the people, and
is now pushing the Senate to approve the bill, as well. House
Republicans warned of a potential government shutdown, should the
Senate vote against the proposal as expected.
- Apple (
debuted its iPhone 5s and 5c in stores
today, which drew long lines of customers. The 5c is a less
expensive alternative to AAPL's pricier phones, while the 5s
offers an improved camera, quicker processor, and a fingerprint
scanner. Analysts are predicting a record sales weekend for the
(The Washington Post)
5 Stocks We Were Watching Today
- An upbeat brokerage note for
triggered a flurry of call activity, but not all of it was of the
Advanced Micro Devices (AMD)
lured longer-term put sellers to the trading table, amid the
security's notable year-to-date gains.
- On its last day as a Dow component,
received some lukewarm coverage at Cantor Fitzerald.
-- which is trending higher this month -- saw a spike in
soon-to-be front-month call volume.
- The latest
Option Idea of the Week
offers up a bullish trading idea for under-the-radar
Regal Entertainment (RGC)
For a look at today's options movers and commodities
activity, head to page 2.
Crude futures fell again today, as reports of expanded oil
production in Libya further eased anxieties regarding crude
supplies in the Middle East. By the close, November-dated oil --
the new front-month contract -- dropped $1.11, or 1.1%, to end at
$104.75 per barrel. On a weekly basis, crude shed 3.2% (when
comparing front-month contracts).
Meanwhile, gold futures took a breather from their Fed-induced
rally, backing off of yesterday's notable high. Gold for December
delivery declined $36.80, or 2.7%, to finish at $1,332.50 an ounce,
but still managed a weekly advance of 1.8%.