Stocks finished Monday's session down, wiping out almost of the gains from Friday, as fear returns to the market. Investors are anxious in front of several key economic reports due out this week and the strength in the overall economic recovery. The Dow Jones Industrial Average ended down 140.92 points, or 1.39%, to close at 10,009. The S&P 500 lost 15.67 points, or 1.47%, to close at 1048, and the Nasdaq was down 33.66 points, or 1.56%, to finish at 2119. Hewlett-Packard (HPQ) - Get Report, the only Dow stock to close in the red on Friday's rally, was the lone member of the index to finish up today. The company's board announced a $3 billion share repurchase this afternoon. All S&P large-cap sectors were lower, led by financials, consumer discretionary and industrials.

The CBOE Volatility IndexI:VIX jumped more than 11% to close up $2.76, at $27.21, above its 200-day moving average of $23.40, and its 100-day moving average of $26.23. VIX call volume of 118,000 contracts compares to put volume of 44,000 contracts, suggesting that traders anticipate weak economic data and higher volatility.

Traders hedged short-term movement with September weekly options on the SPDR S&P 500 ETF (SPY) - Get Report into the August jobs report. SPY closed down $1.55, at $105.31. September 105 weekly straddle is at $2.74 and the September monthly is at $4.70. SPY call volume of 606,000 contracts compares to put volume of 668,000 contracts.

Volume was light in the PowerShares QQQ Trust (QQQQ) and closed down $0.46, at $43.61, into Friday's August employment report. QQQQ call volume of 97,000 contracts compares to put volume of 127,000 contracts. The September 43 weekly put option implied volatility of 36 is above its 26-week average of 26.

September volatility for the SPDR Gold Trust (GLD) - Get Report is at 17, November is at 21 and gold is above $1,238.00. GLD closed down $0.10, at $120.91. GLD call volume of 53,000, contracts compares to put volume of 42,000 contracts. September put option implied volatility is at 17, September is at 18, October is at 20 and November is at 21, versus its 26-week average of 23, suggesting decreasing near-term price movement.

Look ahead to Tuesday, traders will be focused on the S&P/Case-Shiller Home Price Index due out at 9 a.m. EDT, Chicago PMI at 9:45 a.m. EDT, Consumer Confidence Index at 10 a.m. EDT and the FOMC minutes at 2 p.m. EDT. The earnings calendar is light tomorrow, which is typical for this time of year. Notable companies reporting include: The Bank of Nova Scotia (BNS) - Get Report, Dollar General (DG) - Get Report, DSW (DSW) - Get Report and Energy Conversion Devices (ENER) .

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