"The key market driver this morning was the jobs report, which
revealed better-than-expected data," noted Schaeffer's Senior
Trading Analyst Bryan Sapp. "Despite the strong number, stocks sold
off. This could be a sign of increased geopolitical concerns, or an
indication that the market is beginning to discount a rate hike
sooner than previously expected. Earnings, meanwhile, continue to
come in strongly, as most companies are beating expectations. Bulls
will want to see this trend continue." Once again, the
Dow Jones Industrial Average (DJI)
, traded above and below the flat line, but settled with losses.
Trading Topic of the Week
Continue reading for more on today's market, including
-- Tips to Trade Like the Pros:
Manage your money carefully
. Don't be careless with your cash -- keep an eye on those
allocations, and know your exit plan before you enter.
Dow Jones Industrial Average (DJI - 16,512.89)
peeked into positive territory early on, but drifted lower by
mid-morning, closing with a loss of 46 points, or 0.3%. For the
week, however, the blue-chip index tacked on 0.9%. One dozen Dow
names managed to close higher, with The Boeing Company (
) in the lead, rising 1.2%. Pacing the declining majority was Merck
& Co., Inc. (
), down 2.4% today.
S&P 500 Index (SPX - 1,881.14)
continued to flirt with the 1,880 level, giving back 2.5 points, or
0.1%, by the closing bell. The tech-rich
Nasdaq Composite (COMP - 4,123.90)
pared its early gains as well, ending off 3.6 points, or 0.1%. On a
weekly basis, the SPX rose almost 1% while the COMP gained
CBOE Volatility Index (VIX - 12.91)
fell for the fifth consecutive session, slipping 0.3 point, or
2.6%, to close south of the 13 level for the first time since Jan.
22. This week, the VIX lost 8.2%.
5 Items on Our Radar Today
- The U.S.
added 288,000 jobs in April
, the Labor Department reported, easily surpassing economists'
expectations. Meanwhile, the unemployment rate fell by more than
expected to 6.3%, marking the lowest reading since immediately
before the late-2008 financial crisis. Wages were flat, however,
and workforce participation was at a 36-year low.
- President Barack Obama and German Chancellor Angela Merkel
joint statement from the White House today
, indicating more severe sanctions could befall Russia if it
interferes with Ukraine's scheduled presidential election on May
25. Russian President Vladimir Putin "needs to be dissuaded from
his current course," stated Obama.
(Associated Press, via ABC News)
- A recent crop of
J.C. Penney Company, Inc. (
options bulls is hoping for another post-earnings surge after the
company reports later this month.
- Bullish traders continued to flock toward
BlackBerry Ltd (
amid the stock's impressive weekly gains.
Apple Inc. (
scored a price-target hike from analysts at Jefferies, who see
$700 in the iPhone parent's sights.
For a look at today's options movers and commodities
activity, head to page 2.
Crude futures bounced higher after two days in the red, as
today's strong nonfarm payrolls report backed an optimistic outlook
for energy demand. By the bell, the June contract had added 34
cents, or 0.3%, to close at $99.76 per barrel. Week-over-week,
however, oil logged a modest 0.8% drop.
Gold finished higher for the first time this week, as escalating
geopolitical concerns bolstered the yellow metal's safe-haven
appeal. The June contract rose by $19.50, or 1.5%, bringing gold
north of $1,300 to $1,302.90 an ounce. The day's jump was enough to
put gold in positive territory for the week by almost 0.2%.