"After three straight down days, the market was able to finish
in the green," said Schaeffer's Senior Technical Strategist Ryan
Detrick, CMT. "Still, it was similar to the past few days, as
volume was very light, and things were rather boring. Then again,
this is August, and historically (though with some exceptions),
August is a slightly bearish month in which nothing happens." As a
Dow Jones Industrial Average (DJI)
ended the session with a modest gain.
Continue reading for more on today's market, including
- Bernie Schaeffer, our founder and CEO, explains how to profit
volatile emerging markets
by utilizing a particular spread strategy.
- Schaeffer's Senior Trading Analyst Bryan Sapp is expecting
"more choppy action"
this month, and offers up a bearish play for Oracle (
- The latest edition of
digs deeper into the Street's pessimistic attitude toward Toyota
Weekly jobless claims edged higher, Tesla Motors (
) received some earnings-induced price-target hikes, and Chesapeake
) saw a rare surge in put volume.
Dow Jones Industrial Average (DJI - 15,498.32)
spiked to an intraday high of 15,557.12, and then tumbled to a
session low of 15,418.60 in just over an hour this morning. By the
closing bell, however, the index powered north again to end 27.7
points, or 0.2%, higher. Once again, Microsoft (
) led the 16 advancing blue chips with a gain of 2.6%, while Intel
(INTC) paced the 14 laggards with a decline of 1.1%.
S&P 500 Index (SPX - 1,697.48)
also rebounded from its morning lows, and ended with a gain of 6.6
points, or 0.4%, to retake control of its 10-day moving average.
Nasdaq Composite (COMP - 3,669.12)
advanced 15.1 points, or 0.4%, for the session.
CBOE Market Volatility Index (VIX - 12.73)
had a bit of a rollercoaster ride on the charts today, but closed
0.3 point, or 1.9%, lower -- and back below its 10-day moving
A Trader's Take
"Earnings season is nearly over, yet there were some impressive
earnings reports last night, and both Tesla Motors (
) and Groupon (GRPN) soared today," Detrick noted. "At this point,
earnings season would have to be considered a success, and the
economy is on much better footing than most feared six weeks
3 Things to Know About Today's Market
- The Labor Department said
initial jobless claims
rose by a smaller-than-expected 5,000 last week to a seasonally
adjusted 333,000. Meanwhile, the four-week moving average for
first-time unemployment filings dropped by 6,250 to 335,500,
marking its lowest point since November 2007.
- Groupon (GRPN) reported an
adjusted second-quarter profit
of 2 cents per share -- which was in line with the consensus view
-- and revenue of $608.7 million, besting analysts' expectations
for sales of $606.2 million. The firm also appointed Eric
Lefkofsky as its CEO, and announced plans for a $300 million
stock buyback program.
- J.C. Penney (JCP)
is looking for a new CEO
, following the April departure of Ron Johnson. A letter penned
by Bill Ackman -- one of the retailer's biggest investors --
voiced concern that JCP hasn't filled the position permanently
yet. However, the hedge fund manager noted, "Considering the
scale of J.C. Penney, the seriousness of the issues it faces, and
the complexity of its business, there are only a handful of
executives with sufficient talent and experience to take on the
5 Stocks We Were Watching Today
Tesla Motors (
received some positive brokerage attention this morning, after
revealing stronger-than-anticipated quarterly earnings
- Bearish speculators showed unusual interest in
Chesapeake Energy (
by picking the stock's near-term put options.
- Analysts at Baird started coverage of outperforming
with a tepid "neutral" rating.
- Pessimism abounds on
Clean Energy Fuels (CLNE)
ahead of tonight's second-quarter earnings report.
- Bullish traders continued to pounce on
, and honed in on the security's soon-to-expire weekly
For a look at today's options movers and commodities
activity, head to page 2.
Crude oil futures gave back early gains -- which were prompted
by strong trade data out of China -- to end in the red for the
fifth consecutive session. By the close, September-dated crude was
down 97 cents, or 0.9%, to finish at $103.40 per barrel.
Meanwhile, gold futures muscled back atop the $1,300 mark,
thanks to the aforementioned overseas data, as well as a weakening
greenback. The December-dated contract surged $24.60, or 1.9%, to
finish at $1,309.90 an ounce.
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