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Dow Jones Industrial Average Falters, But Notches a Weekly Win

The DJI erased early gains today amid fresh tensions out of Eastern Europe

by 8/15/2014 4:23:04 PM
Stocks quoted in this article:

The Dow Jones Industrial Average (DJI) started the day on positive ground, with a stronger-than-forecast report on industrial production helping to set the bullish tone. Unfortunately, the major equity indexes tumbled into the red by midday, as geopolitical tensions once again rose to the surface. Reports of a Russian incursion into Ukrainian territory rattled investors -- and sent oil futures sharply higher. However, U.S. stocks pared their losses in afternoon trading, and ultimately ended the week with respectable gains.

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

  • How one spread trader placed a potentially risky bullish bet on Apple Inc. (NASDAQ:AAPL).
  • Bitcoin buzz inspired options traders to speculate on eBay Inc (NASDAQ:EBAY).
  • Despite the stock's big post-earnings rally, call and put players are both skeptical of Canadian Solar Inc. (NASDAQ:CSIQ).
  • Plus ... Russia crosses the line with Ukraine, Monster Beverage lands a big-name stakeholder, and consumer sentiment slumps to a nine-month low.
Trading Topic of the Week -- Tips for Short-Term Trading: Determine your exit plan in advance. Lay down some ground rules before entering the trade, or you might find yourself paralyzed by a big stock swing -- or, just as dangerous, caught up by fear or greed.

The Dow Jones Industrial Average (DJI - 16,662.91) was up more than 60 points early in the day -- and down more than 138 at its session low -- but eventually settled on a loss of just 50.7 points, or 0.3%. Among the eight advancing blue chips, The Coca-Cola Company (NYSE:KO) led the way with a 1.7% gain. Visa Inc (NYSE:V) paced the laggards with a 1.1% drop. For the week, the Dow tacked on nearly 0.7%.

The S&P 500 Index (SPX - 1,955.06) traded in a 22.5-point range before ultimately closing on a deficit of just 0.1 point, or 0.01%. The Nasdaq Composite (COMP - 4,464.93) battled all the way back into the black by the close, finishing up 11.9 points, or 0.3%. On a weekly basis, the SPX rose 1.2%, while the COMP outperformed with a 2.2% jump.

The CBOE Volatility Index (VIX - 13.15) ended today on a gain of 0.7 point, or 5.9%. For the week, however, the VIX fell 16.6%.



5 Items on Our Radar Today:

  1. Ukrainian President Petro Poroshenko said his military destroyed part of an armored Russian convoy that breached the border between the two countries overnight. While NATO Secretary-General Anders Fogh Rasmussen confirmed a "Russian incursion" had taken place, the Defense Ministry in Moscow described the claims as "some kind of fantasy." (NPR)
  2. The Thomson Reuters/University of Michigan consumer sentiment index retreated to 79.2 in mid-August, down from July's final reading of 81.8. The reading came as a disappointment, with economists predicting a modest improvement. In fact, the preliminary August figure represents the index's lowest level in nine months. (MarketWatch)
  3. After Coca-Cola snapped up a 16.7% stake in the company, Monster Beverage Corp (NASDAQ:MNST) scored several bullish brokerage notes.
  4. Ahead of last night's earnings release, put players took aim at Applied Materials, Inc. (NASDAQ:AMAT) in two different ways.
  5. After last weekend's tragedy in Ferguson, Missouri, TASER International, Inc. (NASDAQ:TASR) is benefiting from a push for police to wear body cameras.

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

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