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Dow Posts Best Week Since January as Markets End Higher

By: Schaeffer's Investment Research
Posted: 9/13/2013 4:24:00 PM
Referenced Stocks: AA;AAPL;FB;INTC;ZNGA

"There was quite a bit of economic data released today, and most of it relayed the message of modest growth," observed Schaeffer's Senior Equity Analyst Joe Bell, CMT. "Retail sales were slightly worse than expected, and the producer price index signaled a little bit of inflation. The markets generally reacted favorably, as the strong momentum continued into the end of the week." As a result, the Dow Jones Industrial Average (DJI) finished firmly in positive territory.

Continue reading for more on today's market, including :

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The Dow Jones Industrial Average (DJI - 15,376.06) spent the entire session in the black, and tagged an intraday high of 15,380.97 shortly after noon. For the day, the blue-chip barometer ended up finishing 75.4 points, or 0.5%, higher. On a week-over-week basis, the index gained 3%, its best weekly return since January. The Dow's 23 advancers were led by Intel's ( INTC ) analyst-induced 3.6% gain, while Alcoa ( AA ) paced the seven decliners with a loss of 1%.

The S&P 500 Index (SPX - 1,687.99) experienced some rollercoaster price action this morning, surging right out of the gate, only to touch a session low of 1,682.22 an hour later. By the close, however, the SPX was up 4.6 points, or 0.3%. Meanwhile, the Nasdaq Composite (COMP - 3,722.18) gained 6.2 points, or 0.2%. For the week, indexes rose 2% and 1.7%, respectively.

The CBOE Market Volatility Index (VIX - 14.16) had a choppy ride today, as well, and ended up finishing 0.1 point, or 0.9%, lower. The "fear gauge" shed 10.7% for the week, closing below its 20-week moving average once again.

CLOSING SUMMARY - INDICES

CLOSING SUMMARY - NYSE AND NASDAQ

A Trader's Take :

"Despite the strong price action we have experienced during the start of September, we are finally set to hear from the Fed next week," continued Bell. "Certainly all eyes will be on Fed Chairman Ben Bernanke, as many market participants are eager to find out if tapering will begin in September, and if so, by how much."

3 Things to Know About Today's Market :

5 Stocks We Were Watching Today :

  1. Apple ( AAPL ) was slapped with a downgrade at Jefferies following this week's new iPhone reveal and yesterday's shareholder news.
  2. A closer look at Zynga ( ZNGA ) shows a bullish slant in the options pits, despite heavy pessimism from the brokerage bunch.
  3. Analysts at HSBC raised their price target for Citigroup (C) this morning, which could help amplify the stock's upward momentum.
  4. As the shares of ARM Holdings (ARMH) took a breather, put buyers zeroed in on the tech concern's September-dated options.
  5. Nokia (NOK) was targeted by longer-term option bears, who wagered on the mobile phone maker to reverse course by early next year.

EARNINGS

For a look at today's options movers and commodities activity, head to page 2.

STOCKS - NOTABLE CALL ACTIVITY

STOCKS - NOTABLE PUT ACTIVITY

Commodities :

Crude futures felt the weight of today's weaker-than-expected retail sales and consumer sentiment data, while efforts to avoid a U.S. military strike on Syria also dragged prices lower. By the close, October-dated crude shaved off 39 cents, or 0.4%, to end at $108.21 per barrel. On a weekly basis, black gold shed 2.1%.

Meanwhile, gold futures extended yesterday's decline, as investors await the Fed's policy statement due next week. Gold for December delivery fell $22, or 1.7%, to finish at $1,308.60 an ounce -- the lowest close since Aug. 7. For the week, the precious metal dropped 5.6%.

SCHAEFFER'S MARKET POSTURE