"The market declined pretty steadily since the opening bell, as
lackluster earnings on the domestic front took the spotlight,"
explained Schaeffer's Senior Equities Analyst Joe Bell. "Rumors
also surfaced around midday that Greece may not be able to meet
some of its commitments related to economic aid they received.
European markets finished near their lows and certainly put
pressure on U.S. equity markets." Indeed, at its lowest point of
the day, the
Dow Jones Industrial Average (DJI)
had pulled back some 199 points.
Keep reading to see what else was on our radar today:
And now, a look at the numbers...
After the
Dow Jones Industrial Average (DJI - 12,617.32)
tagged its session low of 12,521.84 just after 2:30 p.m. EST, the
index bounced higher and made up for a big chunk of its losses.
Ultimately, the Dow tallied a 104.1-point, or 0.8%, deficit. All
but four of the 30 blue chips closed lower, as Cisco Systems, Inc.
(
CSCO
) paced the 26 laggards with a 5.9% drop. On the flip side,
JPMorgan Chase & Co. (
JPM
) led the winning issues with an 0.8% gain.
The
S&P 500 Index (SPX - 1,338.31)
and
Nasdaq Composite (COMP - 2,862.99)
also took the road south today. By the time the dust settled, the
SPX gave up 12.2 points, or 0.9%, while the COMP sawed off 27.2
points, or 0.9%.
The
CBOE Market Volatility Index (VIX - 20.47)
turned higher for a third consecutive session, posting a 9.9% rise
and an intraday best of 21.00. Today marked the highest daily close
for the market's fear gauge since June 15.
Today's highlight
: "The market experienced a slight late-day bounce, as we finished
well off the lows," confirmed Bell. "Apple Inc.'s (
AAPL
) earnings report has finally arrived, as the company is set to
report after the close. All eyes will be on the tech behemoth
tonight, and will certainly be a focus for market participants
tomorrow."
Turning to today's major market stories...
- Schaeffer's Senior Technical Strategist Ryan Detrick
supported his
steadfast contrarian view of the current
market
on Yahoo! Finance's "Breakout."
-
Options Trends
: NVIDIA Corporation (
NVDA
), OpenTable, Inc. (
OPEN
), and Yelp Inc (YELP).
- Ahead of earnings, Netflix, Inc. (NFLX) gets reacquainted
with its
80-day moving average
.
-
The Gap Inc.'s (GPS) impressive technical
uptrend
intrigued optimistic options traders.
- Pessimism toward KB Home (KBH) could be
shifting in the options pits
.
- Options bears wagered on
RadioShack Corporation's (RSH)
potential for a new bottom, short-term weakness for
Morgan Stanley (MS)
, and
JDS Uniphase Corporation's (JDSU)
trek into multi-year low territory.
- Weekly call activity ramped up on
struggling Dendreon Corporation (DNDN)
.
- New highs and new lows:
Apollo Group Inc (APOL)
and
D.R. Horton, Inc. (DHI)
.
- A pre-earnings
bear put spread
was implemented on ARM Holdings plc (ARMH).
- Evercore Partners weighed in on
American International Group, Inc. (AIG)
and
VMware, Inc. (VMW)
.
- How did customers make out following the fight between
DIRECTV (DTV) and Viacom, Inc. (VIA)
?
For today's activity in commodities, options, and more, head
to page 2.
Oil futures climbed higher today on well-received manufacturing
data out of China. With that, black gold was able to rise despite
mounting euro-zone anxieties -- mainly out of Greece and Germany --
and a strengthening dollar. September-dated crude gained 36 cents,
or 0.4%, to end at $88.50 a barrel.
Gold futures stayed in the red for a second straight session, as
the euro-zone debt crisis proved to be too much for the precious
metal. While the greenback was buoyed against a flailing euro, gold
for August delivery slipped $1.20, or 0.1%, to land at $1,576.20 an
ounce.
Levels to watch in trading...
-
Dow Jones Industrial Average (DJI - 12,617.32)
- support at 11,500; resistance at 14,000
-
S&P 500 Index (SPX - 1,338.31)
- support at 1,100; resistance at 1,500
-
Nasdaq Composite (COMP - 2,862.99)
- support at 2,400; resistance at 3,400
Click the links for coverage on today's
notable annual highs
and
notable annual lows
.
At the end of every market day, the staff at Schaeffer's
Investment Research reviews the trading day in detail, covering
major events and key market developments. Don't miss this
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