Markets Settle South of Breakeven Ahead of Fed Minutes
"We had a few big retailers report earnings this morning, and
the results were mixed," said Schaeffer's Senior Equity Analyst Joe
Bell, CMT. "Once again, an early rally gave way to late-day
selling, and by the end of the session, markets finished near
breakeven." With the Federal Open Market Committee's (FOMC) latest
meeting minutes on tap for tomorrow, the
Dow Jones Industrial Average (DJI)
closed in negative territory, after again crossing above and back
below the 16,000 level in intraday trading.
Continue reading for more on today's market, including :
- Bernie Schaeffer, our founder and CEO, points out a key level to watch on Twitter Inc ( TWTR ) .
- Prior to today's investigation headlines, Tesla Motors Inc ( TSLA ) traders rushed the options pits .
- J.C. Penney Company, Inc.'s ( JCP ) sentiment backdrop shows plenty of skepticism ahead of tomorrow's quarterly earnings report.
- The employment cost index climbed higher for the third quarter,
Chicago Fed President Charles Evans made dovish comments, and
Salesforce.com, inc. (
) received some earnings-induced analyst attention.
The Dow Jones Industrial Average (DJI - 15,967.03) spent a portion of the morning north of breakeven, but ended up finishing 9 points, or roughly 0.1%, lower. Chevron Corporation ( CVX ) led the Dow's 14 advancers with a gain of 1.2%, while a 1.3% drop for Visa Inc (V) paced the 16 decliners.
The S&P 500 Index (SPX - 1,787.87) charted a similar a path as its blue-chip brethren, but ended up shedding 3.7 points, or 0.2%. Meanwhile, the Nasdaq Composite (COMP - 3,931.55) fell 17.5 points, or 0.4%.
Elsewhere, the CBOE Volatility Index (VIX - 13.39) spent most of the day in the black, and added 0.3 point, or 2.2%, for the session.
A Trader's Take :
"Once again, large-caps stood out above the rest," Bell noted. "The Dow led the way, with financials and healthcare stocks having a nice day. Overall, we still seem to just be taking a bit of a breather after the strong rally late last week."
3 Things to Know About Today's Market :
- The Home Depot, Inc. (HD) reported a third-quarter profit of $1.35 billion, or 95 cents per share, up from $947 million, or 63 cents per share, in the year-ago period. Meanwhile, revenue climbed 7.4% to $19.5 billion. Economists, on average, were expecting per-share earnings of 90 cents on sales of $19.2 billion. (Bloomberg)
- The Labor Department said its employment cost index rose by a seasonally adjusted 0.4% in the third quarter -- slightly less than the consensus view. On a year-over-year basis, employment costs were steady, reflecting a 1.9% increase. (MarketWatch)
- Chicago Fed President Charles Evans was the latest central bank official to weigh in on the topic of tapering . During a speech delivered at the Illinois Bankers Association, Evans said the Fed remains committed to reducing unemployment and adjusting inflation toward the 2% target. Regarding the central bank's current bond-buying program, Evans remarked, "I would say the benefits far outweigh the costs." (Reuters)
5 Stocks We Were Watching Today :
- Salesforce.com, inc. ( CRM ) scored a bevy of bullish brokerage notes following last night's turn in the earnings confessional.
- Pre-earnings option bears zeroed in on GameStop Corp. (GME) , and scooped up weekly puts.
- T-Mobile US Inc (TMUS) saw a surge in call volume, particularly in the January 2014 series of options.
- One longer-term spread strategist wagered on a notable move higher for Ford Motor Company (F) .
- This particular near-term Facebook Inc (FB) strike attracted another crop of put sellers.
For a look at today's options movers and commodities activity, head to page 2.
Crude futures edged higher today ahead of tomorrow's weekly oil supply report. By the closing bell, the December contract tacked on 31 cents, or 0.3%, to end at $93.34 per barrel.
Meanwhile, gold futures turned north after yesterday's Fed-induced loss, as December-dated gold rose $1.20, or 0.1%, to settle at $1,273.50 per ounce.