Bulls Watch from Sidelines as Stocks Extend Slide on Europe, Home Sales

By
A A A

"European markets were mostly lower coming into the open this morning, and that certainly put downward pressure on our markets," stated Schaeffer's Senior Equities Analyst Joe Bell. "With that being said, the weaker-than-expected new home sales data really hit the homebuilders hard, and most sectors ended in the red." In fact, the Dow Jones Industrial Average (DJI) was off roughly 50 points at its session bottom, but maintained its foothold atop the 13,400 area.

Keep reading to see what else was on our radar today:

And now, a look at the numbers...

CLOSING SUMMARY - INDICES

CLOSING SUMMARY - NYSE AND NASDAQ


The Dow Jones Industrial Average (DJI - 13,413.51) fell to an intraday low of 13,406.91, but found its footing not too far from this level by the closing bell. On the day, the blue-chip barometer ripped back 44 points, or 0.3%, to end at a two-week closing low. Of the Dow's 30 components, American Express Company's ( AXP ) 1.7% decline paced the 23 laggards, while Hewlett-Packard Company ( HPQ ) led the seven outperforming issues with a 2.4% rise.

The S&P 500 Index (SPX - 1,433.32) and Nasdaq Composite (COMP - 3,093.70) spun into negative territory as well today. The SPX fell 8.3 points, or 0.6%, closing below its 20-day moving average for the first time since Sept. 5, and extending its losing streak to five sessions. Meanwhile, the COMP experienced the worst loss of its fellow indexes, diving 24 points, or almost 0.8%, to find its first daily settlement below 3,100 since Sept. 5.

The CBOE Market Volatility Index (VIX - 16.81) jumped to a session peak of 17.08 -- its highest point since Sept. 6 -- before backing down to a 1.4-point, or 8.9%, victory on the day. The VIX is now testing resistance at its 80-day trendline.

Today's highlight : "The flow away from consumer discretionary sectors continued today," pointed out Bell. "We also saw technology stocks lag, specifically semiconductor stocks. With the market overbought after such a strong rally, the pullback from multi-year highs continued and there was a general flight away from risk."

Turning to today's major market stories...

For today's activity in commodities, options, and more, head to page 2.

Crude futures ended yet another session in the red, as a strengthening greenback overshadowed a surprise drop in domestic stockpiles. Oil inventories fell by 2.45 million to 365.2 million barrels last week; economists were anticipating a gain of 1.9 million barrels. Against this backdrop, November-dated crude futures shed $1.39, or 1.5%, to settle at $89.98 per barrel -- black gold's lowest finish since August 2.

Gold futures ended at a two-week low, pressured by a stronger dollar and global economic headwinds. However, strikes in South Africa's gold mines exacerbated supply concerns, helping to limit the malleable metal's losses. By the time the dust settled, gold for December delivery gave up $12.80, or 0.7%, to finish at $1,753.60 an ounce.

Levels to watch in trading...

  • Dow Jones Industrial Average (DJI - 13,413.51) - support at 11,500; resistance at 14,000
  • S&P 500 Index (SPX - 1,433.32) - support at 1,100; resistance at 1,500
  • Nasdaq Composite (COMP - 3,093.70) - support at 2,400; resistance at 3,400

OUTPERFORMING AND UNDERPERFORMING SECTORS

STOCKS - MOVERS

STOCKS - EARNINGS

STOCKS - NOTABLE CALL ACTIVITY

STOCKS - NOTABLE PUT ACTIVITY

SCHAEFFER'S MARKET POSTURE

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 critical, timely and insightful report. If you enjoyed today's edition of Market Recap, sign up here for free daily delivery straight to your inbox.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

All Rights Reserved. Unauthorized reproduction of any SIR publication is strictly prohibited.


This article appears in: Investing , Options

Referenced Stocks: AAPL , ANR , AXP , GE , HPQ

Schaeffer's Investment Research

Schaeffer's Investment Research
  • See all for Schaeffer's Investment Research
  • View Print Version

More from Schaeffer's Investment Research:

Related Videos

Avatars of the Luxe Life
Avatars of the Luxe Life            

Stocks

Referenced

Most Active by Volume

57,885,392
  • $6.8301 ▲ 12.71%
41,031,347
  • $6.985 ▲ 4.25%
38,188,706
  • $17.42 ▲ 0.93%
37,519,255
  • $7.765 ▲ 1.64%
30,573,153
  • $111.54 ▲ 1.95%
29,402,878
  • $44.59 ▲ 8.33%
28,147,693
  • $7.29 ▲ 3.85%
27,615,549
  • $103.65 ▲ 1.82%
As of 12/18/2014, 01:08 PM


Find a Credit Card

Select a credit card product by:
Select an offer:
Search
Data Provided by BankRate.com