"After two straight down days, we saw a slight bounce today, as earnings across the board came in better than expected," reported Schaeffer's Senior Technical Strategist Ryan Detrick, CMT. The Dow Jones Industrial Average (DJI) enjoyed positive territory throughout the session, reaching as high as 13,416.55 before ultimately settling about 0.5% higher. Meanwhile, the CBOE Market Volatility Index (VIX) broke its losing streak.
Continue reading for more on today's market, including:
The bulls took the reins once again, as the Dow Jones Industrial Average (DJI) muscled higher, closing up 0.5%, or 62 points. Eighteen of the 30 Dow components traded higher on the day, led by Boeing (NYSE:BA), which bounced back from yesterday's drubbing to gain 3.6%. Bringing up the rear, meanwhile, was Bank of America (NYSE:BAC), which pulled back 4.6%.
The S&P 500 Index (SPX) added 3.9 points, or 0.3%, on the day, while the Nasdaq Composite (COMP) kept pace with its index peers, rising 14 points, or 0.5%.
The CBOE Market Volatility Index (VIX) broke its six-session losing streak with a modest gain of 0.2 point, or 1.4%. Earlier in the session, however, the index recorded a new multi-year low of 13.22.
A Trader's Take:
"Alcoa (NYSE:AA) got the headlines today, but I'm more impressed by what was going on under the surface. Danaher (DHR) is a company three times the size of AA, and they upped their fourth-quarter guidance," Detrick noted. "At the same time, Seagate Technology (NASDAQ:STX), Constellation Brands (NYSE:STZ), and Stryker (NYSE:SYK) all had positive things to say about earnings. When you consider just how low some of the overall expectations are as we begin this earnings season," he added, "one has to wonder if the analysts have once again become too bearish. This will make it much easier for companies to clear the lowered earnings bar."
3 Things to Know About Today's Market:
Today's Top Tweet:
"Confidence comes not from always being right but from not fearing to be wrong."
@idillionaire, (idil), 7:40 a.m.
5 Stocks We Were Watching Today:
Question of the Day:
Q: What does arbitrage mean?
A: Arbitrage is a trader's attempt to take advantage of minor price differences between markets in order to generate a profit. For example, due to fluctuations in the foreign exchange rate, a stock could trade at a slightly different price overseas than it does at home. To create an arbitrage (or "arb") opportunity, the trader could buy shares at the lower price, then quickly turn around and sell them at the higher price. Fast-moving markets create a risk for even the most seasoned arbitrage traders, however, as prospects can quickly vanish before both parts of the trade are executed.
For a look at today's options movers and commodities activity, head to page 2.
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