The Dow Jones Industrial Average (INDEXDJX:.DJI) is sticking close to the flat line this morning, following Thursday's 2.2% rally. All eyes remain glued on Washington, D.C., after President Barack Obama met with Republican leaders yesterday in an effort to hash out a budget resolution. While Obama initially rejected House Speaker John Boehner's, R-Ohio, offer for a temporary increase to the debt ceiling, hopes remain high that a solution will be reached ahead of the Oct. 17 deadline. Senate Republicans are scheduled to meet at the White House at 11:15 a.m. ET.
Elsewhere, "Bond action was incredibly interesting yesterday," noted Schaeffer's Senior Equity Analyst Joe Bell, CMT. "The iShares Barclays 20+ Yr Treas. Bond (ETF) (TLT) managed to finish in the green, despite the Dow closing up more than 300 points. Bonds have become the safety trade in recent weeks, but it was interesting to see them show some life in the face of such strong equity price action."
Futures on the Dow Jones Industrial Average 2 Minute (INDEXDJX:.DJI) are roughly 4 points above breakeven.
The Chicago Board Options Exchange (CBOE) saw 1,071,340 call contracts traded on Thursday, compared to 669,637 put contracts. The resultant single-session put/call ratio fell to 0.63, while the 21-day moving average remained at 0.62.
From the Trading Floor
"Right now, it's all about Washington," continued Bell. "Many technical and sentiment indicators are taking a backseat to the headlines. It was very interesting, though, to see how the 80-day moving average once again served as support for the iShares Russell 2000 Index (ETF) (IWM) on Thursday."
Currencies and Commodities
Earnings and Economic Data
Closing out the week is the Thomson Reuters/University of Michigan consumer sentiment index. JPMorgan Chase & Co (JPM) and Wells Fargo & Co (WFC) will enter the earnings confessional.
9 Levels to Watch for Apple Inc.
Featured Partners: AOL DailyFinance
© 2013 Schaeffer's Investment Research, Inc. 5151 Pfeiffer Road, Suite 250, Cincinnati, Ohio 45242
Phone: (800) 448-2080 FAX: (513) 589-3810 Int'l Callers: (513) 589-3800 Email: email@example.com
All Rights Reserved. Unauthorized reproduction of any SIR publication is strictly prohibited.
Market Data provided by QuoteMedia.com | Data delayed 15-20 minutes unless otherwise indicated.