"Late yesterday, the S&P 500 Index (SPX) broke below the
1,840 area, which had been a pretty significant area of former
resistance and support," noted Schaeffer's Senior Equity Analyst
Joe Bell, CMT. "Once that was breached, we saw an increase in
selling pressure and downward momentum that continued this morning.
JPMorgan Chase & Co. (
) also released its earnings report, and market participants were
less than impressed. The session began on a negative note, and the
selling pressure never really let up." By the close, the
Dow Jones Industrial Average (DJI)
had surrendered another 0.9%, bringing its weekly loss to roughly
Trading Topic of the Week
Continue reading for more on today's market, including
-- Tips for Trading Stock Trends:
Don't sweat the small stuff
. When you're playing trends, it's important to remember that
stocks don't move in straight up-and-down lines. There's no need to
panic out of the trade at the first hiccup in the share price.
Dow Jones Industrial Average (DJI - 16,026.75)
continued to slide into the red, notching an intraday low of
16,015.32 before settling off 143.5 points, or 0.9%. On a weekly
basis, the blue-chip index slumped 2.4%. Twenty-five Dow components
closed lower on the day, with JPM bringing up the rear, down 3.7%.
Travelers Companies Inc (
) paced the advancing minority, adding 0.4%.
S&P 500 Index (SPX - 1,815.69)
also spiraled lower on the day, giving back 17.4 points, or 1%, to
close at its lowest point since Feb. 10. The
Nasdaq Composite (COMP - 3,999.73)
declined 54.4 points, or 1.3%, to finish below the 4,000 level for
the first time since Feb. 3. This week, the SPX dropped 2.6%, while
the COMP lost 3.1%.
CBOE Volatility Index (VIX - 17.03)
continued to mount an advance, adding 1.1 points, or 7.2%, to bring
its week-over-week gain to 22%.
A Trader's Take
"Technology stocks and small-caps kept underperforming, as the
higher-beta names continued to get hit," added Bell. "Interestingly
enough, the Nasdaq Composite is now set to battle with the
round-number 4,000 area, which marked a bottom in early
5 Items on Our Radar Today
- JPM disclosed that
first-quarter earnings dropped 18.5%
amid weakness in its trading and mortgage-lending divisions.
Results came in south of expectations, but CEO Jamie Dimon
asserted the financial firm has nonetheless "had a good start to
(The New York Times)
- Producer prices
expanded by 0.5% last month
, the Labor Department reported, and increased 1.4% on a
year-over-year basis. Excluding volatile components such as food
and energy, the core producer price reading edged up 0.3% in
March. Elsewhere on the economic front, April's preliminary
reading for consumer confidence
rose to its highest level since July
, per Thomson Reuters and the University of Michigan.
Specifically, the reading spiked to 82.6 from a four-month low of
80 last month.
(USA Today; Bloomberg)
- Amid continued criticism over technical issues plaguing the
HealthCare.gov website, Kathleen Sebelius -- secretary of the
U.S. Department of Health and Human Services --
announced her resignation
. President Barack Obama has nominated Office of Management and
Budget Director Sylvia Matthews Burwell to fill the role.
Intel Corporation (INTC)
scored a price-target hike ahead of its earnings report next
- As it continues to struggle with resistance on the charts,
Cisco Systems, Inc. (
was targeted by short-term put buyers.
For a look at today's options movers and commodities
activity, head to page 2.
Oil futures popped higher, cheered by an improved reading in
consumer confidence that lifted hopes for energy demand. By the
close, the May contract had added 34 cents, or 0.3%, to settle at
$103.74 per barrel. Over the course of the week,
Gold futures faltered slightly, amid a stronger greenback.
June-dated gold futures gave back $1.50, or 0.1%, to close at
$1,319 an ounce. On a week-over-week basis, however, the precious
metal gained almost 1.2%. Elsewhere, Russian supply concerns lifted
the most active palladium contract to a two-year closing high.
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