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Senate Deal Spurs a 206-Point Gain for the Dow

By: Schaeffer's Investment Research
Posted: 10/16/2013 4:23:00 PM
Referenced Stocks: AAPL;C;CSCO;JPM;YHOO

"We had a pretty nice day today, as the momentum continues to resolve itself to the upside," noted Schaeffer's Senior Equity Analyst Joe Bell, CMT. "Every day is exactly the same story with Washington, as market participants continue to hope that some sort of resolution will arrive in time. Right now, many are very hopeful, after news surfaced that the House of Representatives and Senate are confident of a bill passing tonight." Against this backdrop, the Dow Jones Industrial Average (DJI) finished notably higher by the closing bell, recouping all of yesterday's losses.

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

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The Dow Jones Industrial Average (DJI - 15,373.83) spiked higher at the sound of the opening bell, tagging a session high of 15,374.15 around midday. By the close, the index was just off this intraday acme, up 205.8 points, or 1.4%. JPMorgan Chase ( JPM ) led the Dow's 27 advancers, gaining 3.2%, while Cisco Systems ( CSCO ) paced the three laggards with an analyst-induced decline of 0.8%.

Likewise, the S&P 500 Index (SPX - 1,721.54) surged right out of the gate, and ended the session with an advance of 23.5 points, or 1.4% -- just shy of its intraday peak, and back atop the 1,700 mark. Meanwhile, the Nasdaq Composite (COMP - 3,839.43) finished 45.4 points, or 1.2%, higher, and notched a new 13-year intraday high of 3,840.48.

Elsewhere, the CBOE Volatility Index (VIX - 14.71) tumbled at the start of the session, sinking to an intraday low of 14.67 during the final minutes of trading. The "fear gauge" ended up shedding 4 points, or 21.2%, on the day -- for lowest close since late September.

CLOSING SUMMARY - INDICES

CLOSING SUMMARY - NYSE AND NASDAQ

A Trader's Take :

"We finally got a little bit of clarity and some hope," Bell continued. "Barring an unforeseen event, it seems like a bill will pass that pushes the debt ceiling back a few months, and keeps the government funded for the time being."

3 Things to Know About Today's Market :

5 Stocks We Were Watching Today :

  1. Yahoo! ( YHOO ) received a round of price-target hikes following the release of its third-quarter earnings report yesterday.
  2. A management change at Apple ( AAPL ) triggered a flurry of short-term call activity in the tech giant's options pits.
  3. After revealing a 17% drop in quarterly profits on Tuesday, Citigroup ( C ) was slapped with a slew of price-target cuts.
  4. As ARM Holdings (ARMH) prepares to unveil quarterly earnings next week, sentiment toward the stock has been bearishly skewed.
  5. Weekly option bulls snapped up Sirius XM Radio (SIRI) calls with hopes of a post-earnings surge for the satellite radio issue.

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 recovered most of yesterday's losses, thanks to a Senate deal that could end the government shutdown and lift the debt ceiling. By the closing bell, the November contract added $1.08, or 1.1%, to finish at $102.29 per barrel.

Meanwhile, the same headlines propelled gold futures to their loftiest settlement price since Oct. 10. December-dated gold rose $9.10, or 0.7%, to end at $1,282.30 an ounce.

SCHAEFFER'S MARKET POSTURE