Dow Jones Industrial Average Shakes Off European Data to Inch Higher

The White House revealed plans to boost advanced manufacturing in the U.S.

Oct 27, 2014 at 4:21 PM
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Following a strong performance last week, the Dow Jones Industrial Average (DJI) ended Monday with a modest gain, despite opening the session in the red. Data out of Europe -- including a nearly two-year low in German business confidence -- initially weighed on trader confidence, but was counterbalanced by a generally strong fundamental picture Stateside. Meanwhile, all eyes are on the Federal Reserve, which kicks off its two-day policy-setting meeting tomorrow.

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

The Dow Jones Industrial Average (DJI - 16,817.94) plunged roughly 76 points just out of the gate, but fought back during the afternoon hours to end 12.5 points, or 0.1%, higher. Half of the DJI's 30 components ended with gains, led by Verizon Communications Inc. (NYSE:VZ), which tacked on 1.3%. Conversely, Merck & Co., Inc. (NYSE:MRK) paced the blue-chip index's 15 decliners with a 2% loss, due to a poorly received earnings report.

After spending time on both sides of the flatline, the S&P 500 Index (SPX - 1,961.63) gave back a modest 3 points, or 0.2%, while the Nasdaq Composite (COMP - 4,485.93) closed 2.2 points, or 0.1%, higher.

The CBOE Volatility Index (VIX - 16.04) slipped 0.1 point, or 0.4%, but closed atop 16 for the 13th consecutive session.

CLOSING SUMMARY – INDICES

CLOSING SUMMARY – NYSE AND NASDAQ

5 Items on Our Radar Today:

  1. President Barack Obama issued new executive actions designed to accelerate and improve advanced U.S. manufacturing output. The coordinated effort includes $300 million in investments from the Departments of Agriculture, Defense, and Energy in key areas identified by the Advanced Manufacturing Partnership, as well as an American Apprenticeships Grant Competition worth $100 million from the Department of Labor. (FOX Business)
  2. Several American soldiers leaving Liberia have been placed in a controlled facility in Italy to be monitored for signs of Ebola. So far, the military personnel haven't showed any symptoms of the deadly virus -- though they'll spend a total of three weeks at the facility as a precaution. (MarketWatch)
  3. Skeptical options traders rolled the dice on round-number resistance for BABA, at the elusive century mark.
  4. Despite struggling in 2014, this luxury designer was targeted by option bulls ahead of its earnings report tomorrow morning.
  5. Transocean LTD (NYSE:RIG) spiraled lower today, thanks to yet another bearish note from Wall Street.
EARNINGS

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

STOCKS – NOTABLE CALL ACTIVITY

STOCKS – NOTABLE PUT ACTIVITY

Commodities:

Crude hit a 28-month low today after Goldman Sachs lowered its 2015 pricing forecasts, citing concerns over excessive supply and sagging demand. However, by the close, December-dated crude had partially recovered, ending just a penny lower at $81 per barrel.

Meanwhile, gold moved south, as traders expressed caution ahead of upcoming earnings and economic data -- including Wednesday's policy decision from the Federal Open Market Committee (FOMC). The December-dated contract lost $2.50, or 0.2%, to settle at $1,229.30 per ounce.


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