The expiration of December-dated options contributed to a volatile day of trading on Wall Street. In early action, stocks got a lift after the White House agreed to loan automakers $13.4 billion to stay afloat. President George W. Bush observed that "given the current state of automakers and the economy, a bankruptcy would not work best at this time." Detroit's bailout dollars will come from the government's TARP fund, and the sector may be eligible for another $4 billion in February.
In the wake of this news, the equities market surged in the first hour of trading -- but then turbulence struck. Stocks went crashing back to flat by midday, and spent the rest of the session wavering between positive and negative ground.
The Dow Jones Industrial Average (DJIA 8,579.11) eventually settled on a mild loss of about 26 points, or 0.3%. Of the Dow's 30 components, 13 ended the day on a gain. Merck (MRK) and General Motors (GM) led the advancing issues, while Chevron (CVX) paced the 17 declining equities. The Dow finished the week nearly unchanged, down just 0.6% from last Friday's close.
The S&P 500 Index (SPX 887.88) diverged from the Dow, collecting a modest daily gain of 2.6 points, or 0.3%. For the week, the SPX collected a healthy gain of 0.9%, but the index remains stifled by its 50-day moving average. Finally, the Nasdaq Composite (COMP 1,564.3) jumped into positive territory, tacking on nearly 12 points, or 0.8%. The COMP collected a respectable weekly gain of 1.5%, and ended its fourth consecutive day atop its 10-day moving average.
Turning to equities in focus, Oracle Corporation (ORCL) rallied after releasing its third-quarter earnings ... Eagle Bulk Shipping (EGLE) plunged when investors learned of its dividend suspension ... Pharmaceutical firm Myriad Genetics (MYGN) was the target of unusually heavy option volume ... Potash Corp. of Saskatchewan (POT) attracted heavy selling pressure after slashing its full-year outlook ... Optimism is on the rise toward Red Hat (RHT) ahead of its earnings report, slated for next Monday ... and today's Quote of the Day comes from this New York Times article, which suggests that the beloved character George Bailey from It's a Wonderful Life may have faced prosecution and jail time in real life. Frank J. Clark, district attorney of Erie County, New York, can think of only one mitigating factor:
"You know Jimmy Stewart, though, he had that hangdog face. He'd be a tough guy to send to jail."
But these weren't the only headlines hitting the Street today. Click on the links below for our Daily Market Blog coverage of:
And, in case you missed it, Jocelynn Drake turned her Options Spotlight on Agilent Technologies (A). Click here to watch the video.
For today's activity in crude oil, gold futures, options, and more, turn to page 2.
Today's roller-coaster activity extended to crude futures, as the expiring January contract plunged and the newly front-month February contract collected a modest gain. On its last day of trading, crude oil for January delivery gave up $2.35 to finish at $33.87 per barrel, down 27% for the week. Conversely, February-dated crude added 69 cents, or 1.7%, to end the day at $42.36 per barrel.
Meanwhile, gold futures continued to come under pressure from the strengthening U.S. dollar, which advanced again today versus the struggling euro. The safe-haven metal tumbled to a loss of $23.20, or 2.7%, to wrap up the session at $837.40 per ounce. On a weekly basis, gold added 2.1%.
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