Dow Jones Industrial Average Closes Banner Month on a Low Note

Bill Ackman's Worst-Case Scenario

Oct 30, 2015 at 4:23 PM
facebook twitter linkedin


The Dow Jones Industrial Average (DJIA) settled lower today in a choppy session. Muddying up the ongoing rate-hike speculation was mixed economic data, as traders weighed weak personal income growth against a bigger-than-forecast rise in the Chicago purchasing managers index (PMI). However, limiting the Dow's losses were strong quarterly reports from energy giants Exxon Mobil Corporation (NYSE:XOM) and Chevron Corporation (NYSE:CVX). Even with today's drop, the Dow closed October with its largest monthly gain in four years, while snagging a fifth straight weekly win. 

Continue reading for more on today's market, including

The Dow Jones Industrial Average (DJIA - 17,663.54) traded on both sides of breakeven, but broke sharply lower in late-day trading, for a loss of 92.3 points, or 0.5%. Just seven of the Dow's 30 components closed higher, led by Caterpillar Inc.'s (NYSE:CAT) 1.4% pop. Pfizer Inc. (NYSE:PFE) was the biggest loser with a 2.7% slide. The Dow added roughly 0.1% on the week, and 8.5% in October. 

The S&P 500 Index (SPX -  2,079.36) followed a similar path, closing with a 10.1-point, or 0.5%, loss. The Nasdaq Composite (COMP - 5,053.75) settled 20.5 points, or 0.4%, lower. The indexes posted respective weekly wins of 0.2% and 0.4% -- the fifth straight for each. For the month, the SPX gained 8.3%, while the COMP surged 9.4%.

The CBOE Volatility Index (VIX - 15.07) gained 0.5 point, or 3.2%, while finishing with a weekly lead of 4.2%. For the month, though, the VIX surrendered 38.5%.

151030recap1



151030recap2



5 Items on Our Radar Today:

  1. The U.S. government will narrowly avoid default, assuming President Obama signs the bill passed in the Senate today and in the House earlier this week. The two-year budget deal includes an $80 billion increase in spending and extends borrowing authority through March 2017. (Bloomberg)
  2. The White House confirmed that a small number of special operation troops will be sent to Syria in a shift of U.S. policy against ISIS. Fewer than 50 commandos will be deployed to work with opposition forces and will not be in a direct combat situation. (CNBC) 
  3. LinkedIn Corp (NYSE:LNKD) enjoyed a boost after beating earnings expectations and earning no fewer than 19 price-target increases. 
  4. A good day on the charts and improved guidance for Expedia Inc (NASDAQ:EXPE) could have bears rushing to the exits.  
  5. Solaredge Technologies Inc (NASDAQ:SEDG) swooned in sympathy with a sector peer


151030recap3


151030recap4


151030recap5




Commodities:

Oil prices closed higher today, after active U.S. oil rig numbers fell for the ninth week in a row. December crude oil ended at $46.59 per barrel, a gain of 53 cents, or 1.2 %. For the week, black gold added 4.5%, and gained 3.3% in October.

It was the lowest close in three weeks for December-dated gold, settling at $1,141.40 an ounce, a loss of $5.90, or 0.5%. The possibility of a December rate hike is still weighing on the malleable metal. For the week, gold gave up 1.8%, but added 2.4% on the month.

 

If you are not making money with options, you aren’t buying options like this…

There is no options strategy that more perfectly approaches trading the fastest moving and most volatile stocks available in the marketplace than this one. In fact, there is no strategy that better utilizes put options for optimal returns and a real trading edge over other traders in the exact same market. New options traders fail out at an incredible rate without proper trade research, execution timing, and option picking. Capitalize on Schaeffer’s 100+ years of options trading excellence with the most coveted product launch in company history. Don't waste another second... join us right now before the next round of trades are released!

SCHAEFFER'S JULY STOCKS REPORT AD
 


 


 
Special Offers from Schaeffer's Trading Partners