"Today was a repeat of yesterday," summarized Schaeffer's Senior
Technical Strategist Ryan Detrick, CMT. "Strength early in the day,
and then sellers late." The
Dow Jones Industrial Average (DJI)
traded in a range between 15,049.22 and 14,870.51, ultimately
settling with a 0.3% loss. Meanwhile, the
S&P 500 Index (SPX)
, Detrick noted, "continues to have trouble with its 50-day moving
Continue reading for more on today's market, including
Auto sales top expectations, options players target the TV
sector, and J.C. Penney (
) sees a rare pop in bearish speculation.
Dow Jones Industrial Average (DJI - 14,932.41)
took investors on a topsy-turvy ride today, entering positive
territory shortly after the open, hitting its intraday low around
2:30 p.m. ET, and regaining strength as the closing bell approached
to finally settle with a loss of 42.6 points, or 0.3%. Of its 30
components, 12 closed higher on the day, with JPMorgan Chase (
) gaining 1.3% to lead the charge. At the back of the pack was
General Electric (GE), dropping 1.9%.
As referenced above, the
S&P 500 Index (SPX - 1,614.08)
was unable to hurdle its 50-day moving average, closing with a
fractional loss of 0.9 point, or less than 0.1%. At its intraday
high, the SPX touched 1,624.26, just south of the critical 1,625
level (which coincides currently with the 50-day). The
Nasdaq Composite (COMP - 3,433.40)
also edged fractionally lower today, shedding 1.1 points, or less
CBOE Market Volatility Index (VIX - 16.44)
rose for the first day in six -- albeit barely. After spending the
majority of the session below breakeven, the VIX settled up less
than 0.1 point, or 0.4%.
A Trader's Take
"Today was a very light news day, and honestly, the biggest
developments were the protests in Egypt," noted Detrick. "With the
July 4th holiday looming, tomorrow could be really boring for the
market. Volume was very light today, so expect tomorrow to be even
lighter, given that it is a half-day. Everyone at this point is
waiting on Friday's jobs report -- there's not much more to
3 Things to Know About Today's Market
- William Dudley, president of New York's Federal Reserve Bank,
reiterated his belief
that the central bank will maintain its accommodative stance for
the foreseeable future, especially if certain economic pulse
points don't live up to expectations. Dudley did hint, however,
that the pace of economic expansion could "pick up notably in
- Auto sales were
stronger than expected
in June, with Ford (
) showing a 13% increase in sales -- its best showing in at least
six years. General Motors (
) logged its best month since September 2008, as its sales figure
(The New York Times)
- The Commerce Department noted that
factory orders rose by 2.1%
in May, slightly outpacing what economists were expecting.
Excluding transportation orders, the reading edged up 0.6%.
5 Stocks We Were Watching Today
speculators targeted front-month, out-of-the-money positions in
an aggressive short-term play.
was handed a vote of confidence from Wunderlich Securities this
across the TV sector -- tracking notable speculative activity in
DISH Network (DISH), TiVo (TIVO), and CBS Corporation (CBS).
J.C. Penney (
put buyers went against the grain today, scooping up front-month
Micron Technology (MU)
was swarmed by long-term call buyers, who are looking for a move
to historical highs.
For a look at today's options movers and commodities
activity, head to page 2.
Mounting geopolitical tensions in Syria and Egypt translated
into a boon for black gold. By the time the dust settled, crude oil
for August delivery tacked on $1.61, or 1.6%, to finish at $99.60
per barrel -- the highest close for a front-month contract since
On the other hand, gold futures finished lower for the first
session in three, pressured by a strengthening dollar. By the
close, August-dated gold retreated $12.30, or 1%, to end at
$1,243.40 an ounce.
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