"It was all about Cyprus and the potential run on their banks,
and what that might mean to other European banks and potentially
the entire financial system," said Schaeffer's Senior Technical
Strategist Ryan Detrick, CMT, on a day that saw the
Dow Jones Industrial Average (DJI)
start slow and try in vain to overcome the European concerns. "In
fact, this is all anyone has talked about since Saturday night when
the news broke. How long this concern over whether this is the
first domino to fall is anyone's guess."
Continue reading for more on today's market, including
- Schaeffer's Senior VP of Research Todd Salamone discusses
whether the S&P 500 Index (SPX) has gone
"too far, too fast,"
and whether to sell once it has exceeded its 200-day moving
- Our Senior Trading Analyst Bryan Sapp on
the market's resiliency
in light of what happened overseas today; plus, a closer analysis
of Illinois Tool Works (
- A look at how option traders
that First Solar (
) would move higher over the next month.
- The markets struggle and ultimately finish at a loss, Cyprus
shuts down its banks amid severe bailout concerns, and Citigroup
) gets targeted by bears as part of an overall banking sector
Dow Jones Industrial Average (DJI)
overcame a big drop in the morning but couldn't push past the
Cyprus fears, eventually falling for the second straight session.
The Dow lost 62 points, or 0.4%, to finish at 14,452.06 after being
off roughly 110 points at its intraday low. The 30-member Dow saw
just eight of its members advance, led by Hewlett-Packard (
), which climbed 2.9%. The 22 decliners were paced by Boeing (
), which fell 1.5% on news that it lost out on a $24 billion plane
order to rival Airbus.
S&P 500 Index (SPX)
fell back as well, dropping nearly 9 points, or 0.6%, to close at
Nasdaq Composite (COMP)
finished at 3,237.59, down more than 11 points, or 0.4%.
CBOE Market Volatility Index (VIX)
gained 2.1 points, or 18.2%, to close at 13.36, its highest finish
since March 6.
A Trader's Take
"Given where futures were when they opened last night, you have
to be very impressed with the market's resiliency yet again,"
Detrick said. "There was a lot of fear out there when this news
broke on Saturday, but once again the bulls stepped up."
3 Things to Know About Today's Market
- Officials in Cyprus
the country's banks to prevent further runs after the government
voted to impose a tax on savings accounts as part of a bailout
package from the European Union.
- Confidence among home builders
in March to the lowest levels since last fall, and fell short of
- The proposed $20 million severance
to the top official at American Airlines as part of its proposed
merger with US Airways Group (LCC) has drawn concern from the
trustee overseeing American's Chapter 11 bankruptcy
(Los Angeles Times)
5 Stocks We Were Watching Today
- Citigroup (
) traders looked for
a short-term dip
as part of an overall banking sector decline tied to the Cyprus
- Glu Mobile (GLUU) option traders looked to
on the stock's big rise on the charts today.
- Bullish traders
Lululemon Athletica (LULU) in advance of that company's earnings
release later this week.
- Option traffic was still
around Ulta Salon, Cosmetics & Fragrance (ULTA) after that
company issued an earnings warning last week.
- Renewed talk of a possible merger between DIRECTV (DTV) and
Dish Network (DISH)
a flurry of option trades last Friday, including a big bearish
chunk aimed at a decline next month.
For a look at today's options movers and commodities
activity, head to page 2.
Crude futures had their highest daily close since Feb. 20, as
oil for April delivery gained 29 cents, or 0.3%, to finish at
$93.74 per barrel.
Gold futures hit their highest point since Feb. 26 on renewed
safe-haven sentiment. April-dated gold picked up $12, or 0.8%, to
close at $1,604.60 per ounce.
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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