Dow Gains 95 on Boost from Retail Data, Financial Sector

Learn how to start trading options now!

Markets turned noticeably higher for the day, reclaiming some of last week's deficit

by Jim Cunningham (jcunningham@sir-inc.com) 10/15/2012 4:35:23 PM

Stocks quoted in this article:

The Dow Jones Industrial Average (DJI) slightly grazed negative territory this morning, but maintained its bullish momentum throughout the afternoon to secure a second-straight up day.

"After experiencing a pretty sizeable pullback during the past couple of weeks, it was nice to see some of the broad-market indices hold ground, and bounce off support levels," remarked Schaeffer's Senior Equities Analyst Joe Bell. "Overall, we saw a lot of strength from healthcare stocks, basic materials, and financials. Financial stocks were also given a boost with Citigroup Inc.'s (NYSE:C) consensus-topping third-quarter earnings report."
Click through to see what else was on our radar today:

Option traders readied their portfolios for earnings from Dow names Intel (NASDAQ:INTC) and Travelers (NYSE:TRV).
Plus, just how accurate is the CBOE Market Volatility Index (VIX) at predicting future volatility?

And now, a look at the numbers...

The Dow Jones Industrial Average (DJI – 13,424.23) was up more than 108 points at its intraday peak of 13,437.66, and held onto a large portion of this rally for the day, enjoying a 95.4-point, or 0.7%, upswing. All but five of the 30 blue chips were pointed higher today, with Bank of America Corp's (NYSE:BAC) 3.5% rise topping the list. On the other side of the spectrum, AT&T Inc. (NYSE:T) led the laggards with a 1.2% drop.

The S&P 500 Index (SPX – 1,440.13) and Nasdaq Composite (COMP – 3,064.18) battled out of the red this morning, and claimed victories by the time the closing bell sounded. The SPX gained 11.5 points, or 0.8%, while the COMP added 20.1 points, or 0.7%.

The CBOE Market Volatility Index (VIX – 15.27) slipped 0.9 point, or 5.4%, today, finding support at its 20-day trendline.

Today's highlight: "The market received some good news this morning, as September retail sales came in better-than-expected," pointed out Bell. "Telecom seems to be the one lone sector left out of the party. Investors have major concerns with the competitive environment for Verizon Communications Inc. (NYSE:VZ) and AT&T Inc. (NYSE:T), after Japan's Softbank announced a bid to acquire a majority stake in Sprint Nextel Corporation (NYSE:S)."

Turning to today's major market stories...

Schaeffer's Equities Analyst Bryan Sapp thinks a bounce could be in store for Amazon.com, Inc. (NASDAQ:AMZN).
Cisco Systems, Inc. (NASDAQ:CSCO) witnessed an uptick in November-dated puts.
A bearish spread was constructed on Yahoo! Inc. (NASDAQ:YHOO).
Analysts adjusted their ratings on mobile provider Sprint Nextel Corporation (NYSE:S) and insurance company The Progressive Corporation (NYSE:PGR).
As expiration looms, options bears sought out put positions on Netflix, Inc. (NASDAQ:NFLX).
Call players increased their pre-earnings positions on Intel Corporation (NASDAQ:INTC), The Travelers Companies, Inc. (NYSE:TRV) and IMAX Corporation (USA) (NYSE:IMAX).

For today's activity in commodities, options, and more, head to page 2.

Page 1Page 2

Keywords:

More Market Recap Articles

Monday, June 17, 2013
Dow Pares Gain to 110 Points as Fed Chatter Hits Fever Pitch

The Dow Jones Industrial Average (DJI) logged its fifth consecutive triple-digit move, adding 109.7 points, or 0.7%, to end at 15,179.85. However, the blue-chip barometer couldn't climb back atop its 20-day moving average, which has stifled all but two daily closes in June. Twenty-five of the Dow's 30 blue chips ended higher, led by Cisco Systems' (NASDAQ:CSCO) 2.5% rise. Meanwhile, Verizon Communications (NYSE:VZ) paced the declining minority, surrendering 0.7%.

Friday, June 14, 2013
Chop Continues, S&P 500 Loses 1% for the Week

The Dow Jones Industrial Average (DJI) gave back more than half of yesterday's gains, dropping 105.9 points, or 0.7%, to close the week at 15,070.18. Just four of the index's 30 components gained ground today, as Verizon Communications (NYSE:VZ) paced the advancers with a 0.9% uptick. Johnson & Johnson (NYSE:JNJ) was unchanged on the day, and American Express (NYSE:AXP) brought up the rear, down nearly 3%. Although the Dow did finish the week in the red by 1.2%, it was roughly 117 points above its intra-week low (and north of the 15,000 mark).

Thursday, June 13, 2013
US Markets Dismiss Overseas Peer Pressure to Move Sharply Higher

The topsy-turvy movement in the Dow Jones Industrial Average (DJI) continued, as the blue-chip index gained 180.9 points, or 1.2%, to settle at 15,176.08. With this advance, the Dow retook control of the 15,000 mark, as well as its 10-day and 40-day moving averages. Of the Dow's 30 components, 28 finished north of breakeven, with Caterpillar (NYSE:CAT), Merck (NYSE:MRK), and Pfizer (NYSE:PFE) each gaining 2.3%. The two underperformers were Microsoft (NASDAQ:MSFT) and DuPont (NYSE:DD), respectively off 0.8% and 0.7%.

Wednesday, June 12, 2013
Dow Suffers Its First Three-Day Losing Streak Since December

The Dow Jones Industrial Average (DJI) dropped 126.8 points, or 0.8%, to close at 14,995.23. The move not only put the index south of the psychologically important 15,000 barrier, but below its 40-day moving average as well, which has been breached just twice on a daily closing basis in 2013. Four of the Dow's 30 components managed to close in positive territory, with Hewlett-Packard (NYSE:HPQ) leading the charge, up 2.8%. Bringing up the rear was American Express (NYSE:AXP), which dropped 2.4% to come in last among the 26 declining issues.

Bernie Schaeffer On Charts >>

Mid-Caps Nearing a Triple of March 2009 Lows

Looming Triple Low May Cause MID to Cluster Around 1,200

Posted By: Bernie Schaeffer

Options Flow Recap

Most Active Option Strikes - Stocks

Symbol	Today's Volume	Expiration	Strike	Put Call	% on Bid Price	% on Ask Price
PFE	322264	7/20/13	35	P	1.2%	0.1%
PFE	321980	7/20/13	35	C	0.0%	1.2%
WMB	85156	1/18/14	50	C	0.0%	0.1%
WMB	85083	1/18/14	40	C	0.0%	0.0%
LVS	49210	1/18/14	27.25	C	0.0%	0.0%
SWY	46420	6/22/13	21	C	0.0%	0.0%
ZTS	40119	7/20/13	40	P	1.0%	2.2%
ZTS	38161	7/20/13	40	C	1.1%	0.1%
SE	25066	9/21/13	33	C	1.8%	0.1%
MU	22695	10/19/13	14	C	4.3%	4.2%

Partner Center