"What can you say, the market continues to hold up," mused
Schaeffer's Senior Technical Strategist Ryan Detrick, CMT. "Today
was a pretty boring session, but in the end it was probably nice
for the market to catch its breath after the rally it has had
during the past two weeks. Overall, the big headlines this week
have been earnings, and that will continue next week." Against this
Dow Jones Industrial Average (DJI)
finished the day -- and week -- in positive territory.
Continue reading for more on today's market, including
- Zynga Inc's (
) earnings beat prompted option bulls to
wager on further upside
for the online gaming giant over the next week.
- Near-term speculators
forecast higher highs
for Visa Inc (
) following its upcoming turn in the earnings confessional.
In case you missed it:
This week's edition of
highlights three outperforming stocks that could benefit from
Consumer sentiment hit its lowest level in nearly a year,
Microsoft Corporation (
) topped consensus earnings estimates, and option bulls converged
on Cisco Systems, Inc. (
Dow Jones Industrial Average (DJI - 15,570.28)
experienced some choppy price action, but managed to stay in the
green for the entire session. By the end, the index was up 61.1
points, or 0.4%, to close just below its intraday high. Microsoft
) led the Dow's 21 advancers with an earnings-induced gain of 6%,
while The Procter & Gamble Company's (
) 0.8% loss paced the eight decliners. Pfizer Inc. (PFE) remained
unchanged. For the week, the blue-chip bellwether added 1.1%.
S&P 500 Index (SPX - 1,759.77)
was parked north of breakeven throughout the day, and managed to
tag a record intraday peak of 1,759.82 just before closing 7.7
points, or 0.4%, higher. The SPX also notched an all-time closing
high. Meanwhile, the
Nasdaq Composite (COMP - 3,943.36)
finished with a gain of 14.4 points, or 0.4% -- touching another
13-year intraday high of 3,961.10 along the way. The indexes tacked
on 0.9% and 0.7% for the week, respectively.
CBOE Volatility Index (VIX - 13.09)
spent most of the session in positive territory, but edged down 0.1
point, or 0.8%, by the closing bell. On a weekly basis, the "fear
barometer" gained 0.4%, but finished a second consecutive week
below its 20-week moving average.
A Trader's Take
"Amazon.com, Inc. (AMZN) reported explosive revenue growth, and
that sparked a huge gap and move to new highs for the shares,"
Detrick noted. "This, of course, pushed the Nasdaq once again to
new 13-year highs. You can't argue with that. The other group we
like is small-caps. The Russell 2000 (RUT) was up for its eighth
week in a row. That is very significant, because nine is the
all-time record, most recently achieved in 1996. This year has seen
many records go down, so stay tuned to see if that is the next
record to fall."
3 Things to Know About Today's Market
- Senator Rand Paul (R-Ky) threatened to
block the nomination
of Janet Yellen for Federal Reserve chairman today. " ... I will
request a vote on my bipartisan Federal Reserve Transparency Act,
S. 209. The American people deserve a transparency from the
federal reserve and the federal government as a whole," the
senator said in a statement.
- The final October reading for the Thomson Reuters/University
consumer sentiment index
arrived at a lower-than-expected 73.2, down from September's
reading of 77.5. This latest figure marked the index's lowest
level since December 2012.
- Microsoft Corporation (
fiscal first-quarter earnings
of $5.2 billion, or 62 cents per share, compared to $4.5 billion,
or 53 cents per share, in the year-ago period. Meanwhile, revenue
climbed 16% to $18.5 billion. Analysts, on average, were
expecting earnings of 54 cents per share on sales of $17.8
5 Stocks We Were Watching Today
Amazon.com, Inc. (AMZN)
enjoyed a round of bullish brokerage notes following last night's
well-received quarterly revenue results.
- Traders bet on
General Electric Company (GE)
to rise by mid-January -- which coincides with the firm's next
- A weaker-than-expected 2014 forecast from
Sirius XM Radio Inc (SIRI)
triggered a pair of downgrades for the stock.
Cisco Systems, Inc.'s (
short-term call activity surged, as speculators showed an
affinity for the security's weekly options.
- Some positive price action for
Intel Corporation (INTC)
-- and inexpensive option premiums -- attracted November call
For a look at today's options movers and commodities
activity, head to page 2.
Crude futures extended yesterday's gains, despite some lingering
unease over increasing oil supplies. By the time the dust settled,
the December contract added 74 cents, or 0.8%, to end at $97.85 per
barrel. For the week, however, crude shed 2.9% -- its third
straight weekly decline.
Meanwhile, gold futures secured yet another five-week closing
high, as weak consumer sentiment data boosted the precious metal's
"safe haven" appeal. December-dated gold edged up $2.20, or 0.2%,
to finish at $1,352.50 an ounce. On a weekly basis, gold advanced
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