Market Recap: Dow Erases Triple-Digit Losses Thanks to Eleventh-Hour Rally

              

The equities market turned lower right out of the gate this morning, shrugging off a rare bout of encouraging news from the Commerce Department. More specifically, after a 6-month streak of losses, U.S. retailers saw sales rebound in January, exceeding economists' expectations. Instead, the lingering questions surrounding the economic stimulus and bank-rescue package kept investors discouraged, and pressured a plethora of banking issues to hefty intraday losses. However, the bearish sentiment plaguing the Street subsided during the last hour of trading, after Reuters reported that the Obama administration is working on a program to subsidize mortgage payments for homeowners. By the closing bell, the major market indices had erased most – if not all – of the day's losses.

After dawdling in triple-digit-loss territory most of the day, the Dow Jones Industrial Average (DJIA – 7,932.76) turned higher thanks to an eleventh-hour rebound. For the day, the blue-chip barometer finished with a mild deficit of only 6.77 points, or 0.09%. Leading the 10 advancing issues were shares of Coca-Cola Company (KO), bolstered by an impressive earnings report. Meanwhile, 3M Company (MMM) and Bank of America (BAC) blazed the path into the red for the remaining 20 components.

The S&P 500 Index (SPX – 835.19) also got a boost during the final hour of trading, ending the session 1.45 points, or 0.17%, higher. Echoing the SPX's turnaround was the Nasdaq Composite (COMP – 1,541.71), bouncing off support in the psychologically critical 1,500 region to trek 11.2 points, or 0.73%, into the black.

Turning to equities in focus, Valentine's Day may not be enough to rejuvenate the struggling shares of 1-800-FLOWERS.COM, Inc. (FLWS) ... Call volume swelled on commodity issues, as gold futures touched a 7-month high ... Put players targeted credit card concern American Express (AXP) ... Shares of Continental Airlines (CAL) took off after a bullish brokerage note ... Schaeffer's analyst Rocky White dissected previous options expiration weeks and what could be in store for the SPX ... and today's Quote of the Day comes from Kelly Riddle, owner of Kelmar & Associates in San Antonio. Though Valentine's Day is typically an opportune time to catch a cheating spouse in the act, the private investigator says that this year is one of the few in the past 20 years that hasn't triggered a boom in business. Riddle attributes the lack of suspicious clientele not to unprecedented fidelity, but rather the dismal state of the economy, opining:

"If they have a cheating spouse with a job, now is not the time to rock the boat."

But these weren't the only headlines hitting the Street today. Click on the links below for our Daily Market Blog coverage of:

• Buffalo Wild Wings (BWLD) and Chipotle Mexican Grill (CMG)
• Toyota Motor (TM)
• Microsoft Corporation (MSFT)
• and Netflix (NFLX)

And, in case you missed it, Senior Equities Analyst Richard Sparks analyzed the market this week. Click here to watch.

For today's activity in crude oil, gold futures, options, and more, turn to page 2.

Crude futures extended their decline for a fifth consecutive session today, closing just shy of a 4-year low. Fueling black gold's journey lower was yesterday's report from the Energy Information Administration (EIA), which revealed that crude inventories increased by 4.7 million barrels – more than analysts expected – to 350.8 million barrels in the week ended Feb. 6. By the closing bell, March-dated crude shed $1.96, or 5.5%, to end at $33.98 per barrel.

On the flip side, gold futures continued their recent rally today, as skepticism regarding the government's bailout plan increased the metal's appeal as a safe-haven investment. What's more, traders continued to flock to gold despite stronger-than-expected retail sales in January. For the session, gold for February delivery added $4.70, or 0.5%, to finish at $948.50 an ounce – the highest closing level for a front-month contract since July 2008. Since Monday, the malleable metal has advanced $56.10, or 6.2%.

Levels to Watch in Trading:

Dow Jones Industrial Average (DJIA – 7,932.76) - support at 7,500; resistance at 9,000

S&P 500 Index (SPX – 835.19) - support at 750; resistance at 1,000

Nasdaq Composite (COMP – 1,541.71) - support at 1,300; resistance at 1,750

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