"We ended the week on a mixed note, as volatility remains with
us," noted Schaeffer's Senior Equity Analyst Joe Bell, CMT.
"Technology was the big laggard today, after Oracle Corporation (
) issued a worse-than-expected earnings report that sent the shares
plummeting." Meanwhile, the
Dow Jones Industrial Average (DJI)
recovered from a midday dip into the red to close with a slight
gain for the day.
Continue reading for more on today's market, including
One Fed member begs to differ, European stocks drop into the
red, and Amazon.com (
) shareholders look for protection.
Dow Jones Industrial Average (DJI - 14,799.40)
started higher out of the gate, descended into negative territory
by late morning, and recovered to end the session with a modest
gain of 0.3%, or 41.1 points. The blue-chip index remains below its
80-day moving average, however, and surrendered 1.8% for the week.
Of the 30 Dow components, 19 managed to finish the day in the
black, led by Procter & Gamble (
), which gained 2.9%. Bringing up the rear was Hewlett-Packard (
), which suffered a 2.3% loss.
S&P 500 Index (SPX - 1,592.43)
also edged higher, adding 0.3%, or 4.2 points, but remaining south
of the 1,600 level and its 80-day trendline. Underperforming its
index peers was the
Nasdaq Composite (COMP - 3,357.25),
which fell 7.4 points, or 0.2%. This week, the SPX dropped 2.1%,
while the COMP declined 1.9%.
CBOE Market Volatility Index (VIX - 18.90)
plunged 7.8%, or 1.6 points, after yesterday's spike higher that
took it above the 20 threshold. Still, the VIX surged 10.2% for the
A Trader's Take
"Treasury yields continue to rise, which isn't helping the stock
market too much," added Bell. "Surprisingly, utilities and
healthcare stocks have outperformed in the midst of
underperformance from most major sectors. Financials and
homebuilders continue to struggle, as rumors have surfaced that
U.S. regulators are thinking about increasing the capital
requirements for large banks."
3 Things to Know About Today's Market
- James Bullard -- president of the Federal Reserve Bank of St.
Louis -- had some criticism for his colleagues today.
Specifically, he opined that the timing of Fed Chief Ben
Bernanke's tapering intimation
, and believes the central bank should have waited to see further
evidence of economic recovery.
(Federal Reserve Bank of St. Louis)
- Oracle Corporation (
) took a tumble after its
report revealed disappointing demand for cloud computing services
and other new software. Excluding items, the software company
earned 87 cents per share, matching estimates, while revenue fell
short of expectations. In other news, the company announced plans
to move from the Nasdaq exchange to the New York Stock Exchange
(NYSE), pending approval.
(The Washington Post)
- European stocks headed lower today, on the heels of
yesterday's steep plunge in stateside equities. In fact, one
widely followed benchmark -- the FTSEurofirst 300 --
fell into negative territory
for 2013, reaching levels not touched since December.
5 Stocks We Were Watching Today
Tesla Motors (TSLA)
bulls focused on the $100 mark.
Ford Motor (F)
option bears wagered on a multi-month retreat in the
shareholders may have scooped up out-of-the-money puts as
Alcatel Lucent (ADR) (ALU)
secured two upgrades and a price-target increase this
- Call buyers took an increased interest in
Nokia Corporation (ADR) (NOK)
, betting on a short-term rally above the $4 level.
For a look at today's options movers and commodities
activity, head to page 2.
Oil futures moved lower today, with the newly front-month August
contract dropping $1.45, or 1.5%, to end at $93.69 per barrel. For
the week, the front-month contract lost almost 4.3%.
Gold edged higher today, but the gains paled in comparison to
Thursday's drubbing. August-dated futures added $5.80, or 0.5%, to
settle at $1,292 an ounce. On a weekly basis, the precious metal
dropped $95.60, or 6.9%.
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