"The day ended a lot like the rest of the week played out, with
a lot of volatility," observed Schaeffer's Senior Technical
Strategist Ryan Detrick, CMT. "The
Dow Jones Industrial Average (DJI)
entered negative territory about an hour into the session, and it
never looked back, ultimately closing near its lows of the day.
Other than a big bounce on Thursday, this week was pretty ugly."
Continue reading for more on today's market, including
Producer prices increase, the IMF tweaks its outlook for the
U.S., and Nokia (
) bulls emerge.
Dow Jones Industrial Average (DJI)
gave back more than half of yesterday's gains, dropping 105.9
points, or 0.7%, to close the week at 15,070.18. Just four of the
index's 30 components gained ground today, as Verizon
) paced the advancers with a 0.9% uptick. Johnson & Johnson (
) was unchanged on the day, and American Express (
) brought up the rear, down nearly 3%. Although the Dow did finish
the week in the red by 1.2%, it was roughly 117 points above its
intra-week low (and north of the 15,000 mark).
S&P 500 Index (SPX)
also suffered a setback, shedding 9.6 points, or 0.6%, to close at
1,626.73, which was back below its 10-day moving average. The
Nasdaq Composite (COMP)
lost 21.8 points, or 0.6%, to 3,423.56. For the week, the SPX
surrendered 1% while the COMP dropped 1.3%, the worst of the three
CBOE Market Volatility Index (VIX)
popped higher today, up 4.5%, or 0.7 point, to close back above the
17 level, at 17.15. This week was a big one for the VIX, which
surged by 13.3% and managed a weekly close atop its 80-week moving
average for the first time in 2013.
A Trader's Take
"When you consider Thursday's bounce was attributed to an
The Wall Street Journal
that said the Fed wasn't going to taper as soon as some think, it
doesn't do much to add a lot of confidence," noted Detrick. "Still,
next week we'll have a Fed decision on interest rates. We always
hear how 'this is the most important Fed meeting in years,' but
this one really just might be. Everyone and his mother knows the
Fed might begin to taper their monthly bond purchases, but the big
question is -- when? Hopefully Wednesday's announcement helps clear
up that mystery."
3 Things to Know About Today's Market
- The producer price index (PPI)
increased more than expected
, rising 0.5% in May, the first gain in three months. Core prices
-- which exclude more volatile food and energy costs -- edged
just 0.1% higher. Elsewhere, the preliminary reading for this
Thomson Reuters/University of Michigan consumer
dropped to 82.7 from 84.5 at the end of May. The reading fell
short of economists' estimates, even though it was the second
highest in the last eight months.
- The International Monetary Fund, or IMF, projected that
U.S. economic growth will slow
to 1.9% this year, from 2.2% in 2012. Cutting into this growth
are the government's efforts to lower the federal deficit.
- JPMorgan Chase (JPM) is separating itself from its only
remaining private equity group, One Equity Partners. One Equity
will be spun off
as a separate company and assume the responsibility of raising
its own funding.
(The New York Times)
5 Stocks We Were Watching Today
Nokia Corporation (
was the target of long-term call buyers, as the stock bounced
higher on various news.
Ford Motor (F)
put buyers expect a move to multi-month lows over the
- Optimistic call traders wagered on a strong summer for
T-Mobile US (TMUS)
- Eleventh-hour bulls looked to pocket a quick gain in
General Electric (GE)
Groupon Inc (GRPN)
rallied sharply higher, following an upgrade from Deutsche
For a look at today's options movers and commodities
activity, head to page 2.
Oil futures gained ground today as tensions mounted in Syria. At
the close, black gold was up $1.16, or 1.2%, to $97.85 per barrel.
Since last Friday's close, oil has gained roughly 1.9%.
Gold futures were also able to end the week on a positive note,
thanks to the higher-than-expected PPI increase. August-dated gold
added $9.80, or 0.7%, to settle the week at $1,387.60 an ounce.
This is a slight gain of $4.60, or 0.3%, from one week ago.