On Tuesday, the market busted out of its 2014 rut with the S&P 500 (SPX) closing at 1,839, up 20 (1.09%). This came on positive December retail sales numbers after Friday’s disappointing jobs report that left a sour taste in the market’s mouth.?
Rewind to the first of the year as the Dow Jones Industrial Average (DJIA) kicked it off dropping in six of its first eight days of trading. On Monday, it fell 179 points–a drop not seen since September. This resulted in a 1.9% fall for the year-to-date–a first for stocks to begin the year in the red in five years, reported The Wall Street Journal.?
The?Nasdaq?Composite (COMP) also increased?69.71 points (1.7%) to 4,183.02, finally seeing positive territory with a 2014 0.15% increase and a 13-year high close on Tuesday.
Adding to the good market day was the report that inventories at U.S. businesses?increased?more than estimated in November while prices of goods imported?into the U.S. had been unchanged last month but slightly declined for 2013.?
The National Federation of Independent Business also announced on Tuesday that its Small Business Optimism Index increased by a?1.4 points to 93.9 in December. Companies are more optimistic about the future for business conditions and earnings, reported CNBC.
Volatility has been a topic of conversation in this new month. On Tuesday, it closed at 12.28, down 1 (7.53%).?
Art Cashin, director of floor operations at UBS, said via CNBC of the VIX’s fall on Tuesday, “I do think some of this may have to do with the fact that we have an expiration week. It may be playing with some of these portfolios.”
This comes as there’s a triple expiration on Friday.
On Tuesday, Mark Sebastian wrote, Where is the Vol? while CNBC wrote about Monday’s volatile trading.?
As for 2013’s volatility, was it too low opines Bill Luby?
A look at Wednesday’s markets has some interesting data to digest.?
Earnings reports include?Bank of America (BAC) and Fastenal?(FAST) in the morning with?Kinder Morgan?(KMI) and?CSX?Corporation (CSX) sharing numbers after the bell.?
Wednesday economic data has the PPI, the Empire State survey and the Beige Book at 2 p.m. Traders will also keep their ears open on a busy day of Fed speak. This includes Chicago Fed President Charles Evans (12:50 p.m. ET) and Atlanta Fed President Dennis Lockhart (5:20 p.m. ET).