Stocks End Slightly Down on Very Low Volume

Even though the market closed down, the trend remains positive as stock valuations are attractive, the earnings forecast is good and the economy seems to be picking up.
By Jill Malandrino ,

Stocks ended slightly down on extremely light volume, even for a holiday week, with trading at less than half of normal levels, despite a handful of upbeat economic reports. Even though the market closed down, the trend remains positive as stock valuations are attractive, the earnings forecast is good and the economy seems to be picking up.

The Dow Jones Industrial Average ended down 15.67 points, or 0.14%, to close at 11,569. The S&P 500 fell 1.8i9 points, or 0.15%, to close at 1257, and the Nasdaq was down 3.95 points, or 0.15%, to finish at 2662. Breadth was pretty evenly split with 50% of stocks were advancing while 47% were declining. Conglomerates were under the most pressure, while home builders got a lift from a positive read on pending home sales.

The February gold contract finished down by $7.60, or 0.5%, to settle at $1,405.90 an ounce. The dollar weakened against a basket of currencies with the dollar index down by 0.3%. The benchmark 10-year Treasury note weakened 10/32, lifting the yield to 3.394%.

In corporate news, Anadarko Petroleum (APC) - Get Report saw its stock jump 7% to $75.68 following a report in London's Daily Mail that BHP Billiton (BHP) - Get Report may be preparing a bid for the oil and gas exploration company. BHP's stock was up 0.2% at $92.99. Shares of MBIA (MBI) - Get Report were up 13.3% to $11.74 on news that JPMorgan Chase (JPM) - Get Report and Barclays (BCS) - Get Report withdrew a lawsuit that opposed MBIA's plans to divide its insurance units.

CBOE Volatility IndexI:VIX closed up $0.26, at $17.53, below its yearly high of $48.20 from May 21 and above its yearly low of $15.22 on April 12.

The SPDR S&P 500 ETF (SPY) - Get Report closed down $0.20, at to $125.72. Overall option implied volatility is at 19, compared to its yearly high of 32 on May 20 and low of 17 in March. Low volatility indicates decreasing price movement.

PowerShares QQQ Trust (QQQQ) overall option implied volatility is at 20, compared to its yearly high of 36 on May 20,and low of 18 in April. Low volatility suggests decreasing price movement. The Qs closed down $0.14, at $54.65.

Anadarko Petroleum (APC) - Get Report volatility settled flat after spiked as shares rallied on takeout speculation. January 75 and 80 calls are active on total call option volume of 92,000 contracts compared to 26,000 put contracts. January call option implied volatility is at 41 and February is at 40, compared to its 26-week average of 42, suggesting larger near-term price movement.

There are no economic data or notable companies reporting on the last day of 2010.OptionsProfits For actionable options trade ideas from a team of experts, visit TheStreet's OptionsProfits now.

Readers Also Like:

>>Great Entry Point for Intel

Readers Also Like:

>>Trading Rules in the Quest for Profits

Readers Also Like:

>>10 REITs That Crushed the Market in 2010

Loading ...