Dow Jones Industrial Average (DJI)
broke its three-day winning streak, dropped back below 15,000, and
suffered a triple-digit drop. The index did, however, manager to
end the week and the quarter in positive territory (the month of
June, however, was squarely in the red). "A disappointing Chicago
PMI report set the tone early on today, causing most sectors to
turn lower," noted Schaeffer's Senior Equity Analyst Joe Bell, CMT.
"The 10-year Treasury rate also moved slightly higher, which
continues to weigh on the market at this point."
Continue reading for more on today's market, including
More market-moving remarks from the Fed, a dark day for
Research In Motion (
), and a large volatility play on silver.
Dow Jones Industrial Average (DJI - 14,909.60)
spent nearly all of the day in the red and cruised sharply lower as
the closing bell approached. At the day's conclusion, the index was
off 114.9 points, or 0.8%. In today's trading, just four Dow stocks
closed in positive territory, with Home Depot (
) leading the way, up 1.6%. Pacing the declining majority was IBM (
), which dropped 2.3%. For the week, month, and quarter,
respectively, the Dow gained 0.7%, lost 1.4%, and rose 2.3%.
S&P 500 Index (SPX - 1,606.28)
held onto the 1,600 level but dropped nearly 7 points, or 0.4%. In
June, the SPX fell 1.5%, but it added 2.4% during the second
Nasdaq Composite (COMP - 3,403.25)
was the day's outperformer, edging up 1.4 points, or less than
0.1%. The COMP dropped 1.5% in June and closed the second quarter
CBOE Market Volatility Index (VIX - 16.86)
was unchanged at the close after spending time on both sides of
breakeven. This month, the VIX added 3.4%, and jumped 32.8% for the
A Trader's Take
"Utilities and consumer discretionary sectors were among the
leaders today, as volatility continues to remain present in the
current trading-range environment," observed Bell. "We also
received a better-than-expected Thomson Reuters/University of
Michigan consumer sentiment index, which helped some stocks move
off their lows."
3 Things to Know About Today's Market
- Taking a more hawkish approach than some of his recently
vocal colleagues, Fed Governor Jeremy Stein summarized recent
improvements in the U.S. economy, and projected that
bond purchases could begin to slow
in September. Meanwhile, Richmond Fed President Jeffrey Lacker
warned of more volatility as the tapering plan is worked through.
- Consumer sentiment
edged lower to 84.1 in June
, down from 84.5 at the end of May. This was a better reading
than analysts were expecting, and was largely attributed to
continued health in the housing market.
- Research In Motion (
) was a
in the earnings confessional, losing 13 cents per share in its
fiscal fourth quarter. Analysts were expecting a per-share profit
of 6 cents. Revenue also fell short of the mark, totaling $3.1
billion. BBRY shares tumbled nearly 28% in response.
5 Stocks We Were Watching Today
Option Idea of the Week
features a bearish, intermediate-term play on
Peabody Energy Corporation (
, which continues to founder despite a backdrop of optimism.
- One trader wagered on continued volatility in the metals
sector, opening a long-dated straddle on the
iShares Silver Trust (NYSEARCA:SLV)
Zynga Inc (ZNGA)
bulls scooped up deep-in-the-money calls.
- Webush Securities expressed a lukewarm outlook toward
Tesla Motors Inc (TSLA)
, initiating coverage with a "neutral" rating.
Nokia Corporation (NOK)
was the target of short-term option bears, who foresee a rocky
For a look at today's options movers and commodities
activity, head to page 2.
Crude futures snapped a four-session winning streak, with
August-dated oil ending a volatile session 49 cents, or 0.5%, lower
at $96.56 per barrel. For the month, the front-month contract for
black gold added 5%, but shed about 0.7% for the quarter.
After an intraday move south of the $1,200 mark, August-dated
gold closed today with a gain of $12.10, or 1%, at $1,223.70 per
ounce. But the day's move did little to save the precious metal
from a record-setting quarterly loss of more than 23%. (Previously,
the largest quarterly drop in the modern trading era was in the
first quarter of 1982, when gold sank 18%, noted FactSet.) On a
monthly basis, the front-month contract gave back 12.2%.
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