Following last Friday's Dubai-inspired plunge, stocks wavered today between mild gains and modest losses. In addition to lingering concerns about the potential Dubai World fallout, investors also considered a lukewarm Black Friday for the retail sector. A greater number of shoppers hit the retail circuit this year than last, with roughly 23 million additional consumers reaching for their pocketbooks, but overall sales for the four-day period totaled just $41.2 billion -- barely higher than last year's $41 billion. The National Retail Federation noted a drop in the number of dollars spent per consumer; average spending tumbled to $343.31 per person, down from $372.57 last year. However, the market's reaction to this negative news was somewhat muted, thanks in part to a solid Chicago purchasing managers index (PMI). The index improved to 56.1% in November, marking its highest point since August 2008. In the end, despite the day's mixed data, stocks still managed to finish the month firmly in the black.
In fact, the Dow Jones Industrial Average (DJIA 10,344.84) rebounded into positive territory by the close, adding on 34.9 points, or 0.3%. Exactly half of the blue-chip barometer's 30 components finished higher, with financial firms rebounding from Friday's drubbing to lead the way. JPMorgan Chase (JPM), Bank of America (BAC), and American Express (AXP) paced the 15 advancing equities, while Alcoa (AA) and Home Depot (HD) set the tone for the 15 decliners. After rallying 6.5% in November, the Dow notched a monthly close atop its 20-month moving average for the first time since December 2007.
The S&P 500 Index (SPX 1,095.63) followed the Dow's lead, resolving its own roller-coaster session to the upside. The SPX rose 4.1 points, or 0.4%, to bring its monthly gain to 5.7%. Like the Dow, the SPX settled atop its 20-month trendline for the first time in nearly two years. Last but not least, the Nasdaq Composite (COMP 2,144.60) joined the eleventh-hour rally to collect a daily gain of 6.2 points, or 0.3%. On a monthly basis, the COMP climbed 4.9%, and racked up a fourth consecutive monthly finish atop its own 20-month moving average.
Turning to equities in focus, Las Vegas Sands (LVS) sank in the wake of a dismal Hong Kong debut for its Sands China IPO ... United States Steel (X) was boosted by a bullish note from Goldman Sachs ... A bearish speculator initiated a long put spread on Developers Diversified Realty (DDR) ... Hopes were high for Amazon.com (AMZN) to reap the benefits of "Cyber Monday" ... SunTrust Banks (STI) attracted the attention of pessimistic option players ... and today's Quote of the Day comes from Seth Stevenson, who discussed the fine art of advertising in a recession in today's Slate column. In reference to Allstate's (ALL) "back to basics" commercial, which claims that "meatloaf and Jenga can actually be more fun than reservations and box seats," Stevenson retorted:
"I've eaten meatloaf. I've played Jenga. You're not fooling me, Allstate. "
But these weren't the only headlines hitting the Street today. Click on the links below for our Daily Option Blog coverage of:
And, in case you missed it, Andrea Kramer explored the week's most enticing option plays in today's edition of Options Stew. Click here to watch the video.
For today's activity in crude oil, gold futures, options, and more, turn to page 2.
Crude futures finished the month on a high note, with the front-month contract catching a lift from weakness in the U.S. dollar and rising geopolitical tensions. Specifically, reports indicate that five U.K. nationals are being detained in Iran after their yacht drifted into the country's waters and was seized by the Iranian navy. This development comes on the heels of Iran's announcement over the weekend that it will construct 10 uranium-enrichment plans, hinting that its nuclear ambitions haven't cooled in the face of Western opposition. Crude oil for January delivery ended the day up $1.23, or 1.6%, at $77.28 per barrel. Black gold eked out a slim gain of 0.4% for November.
The U.S. dollar caught a significant safe-haven boost on Friday, but the greenback gave back its gains today after government officials in Abu Dhabi pledged to provide aid to debt-strapped Dubai. Thanks to the currency's weakness, gold futures finished November firmly in positive territory. December-dated gold added $6.90, or 0.6%, to end at $1,181.10 per ounce. For the month, the malleable metal tacked on 13%.
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