Dow Drops 73 Points as Facebook Frenzy Fades; Weekly Woes Weigh on Stocks

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Each session this week looked like the next, and today was no exception, as the Street watched the bears take hold once again. "Quite simply, it's more of the same," said Schaeffer's Senior Equity Analyst Joe Bell. "We had a little bit of green early on, but sellers took control and the momentum continued for one more day." By the closing bell, the Dow Jones Industrial Average (DJI) tumbled to its sixth straight loss and put in its first daily close below its 160-day moving average since mid-December.

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

  • Did Wall Street "like" Facebook's ( FB ) IPO ?
  • The major market indexes suffered their biggest weekly losses of the year .
  • Go against the current market sentiment: buy fear, not greed .
And now, a look at the numbers...



The Dow Jones Industrial Average (DJI - 12,369.38) touched a session peak of 12,492.97 around midday, and tumbled to the 12,336.76 mark in the last hour of trading. In the end, it was a down day, as the Dow slumped 73.1 points, or 0.6% -- bowing to its worst daily close since Jan. 6. Twenty of the 30 blue chips finished with losses, as Hewlett-Packard ( HPQ ) led the laggard with 2.7% drop. Wal-Mart ( WMT ) paced the 10 winning issues with a 1.2% jump. For the week, the Dow buckled 3.5%.

S&P 500 Index (SPX - 1,295.22) SPX components resting above their 10-day moving average

The Nasdaq Composite (COMP - 2,778.79) endured the biggest slump of its fellow benchmarks, sawing off 34.9 points, or 1.2%. The tech-rich index faltered 5.3% on the week.

The CBOE Market Volatility Index (VIX - 25.10) solidified its loftiest perch since Dec. 15. The VIX closed out the day with a 2.5% increase, and settled 26.2% higher for the week.

Today's highlight : "Facebook's ( FB ) highly anticipated public offering has finally come and gone," noted Bell. "For all the hype and volatility throughout the day, the stock ended up just above the $38 initial price, pretty much near breakeven."

Turning to today's major market stories...

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

Make it six losses in a row for oil futures, as the commodity continued to be pressured by euro-zone anxiety and concerns about global demand. Crude for June delivery sank $1.08, or 1.2%, to close at $91.48 a barrel. Black gold ended the week down 4.8%.

Gold futures extended their reach into positive territory for a second straight session, buoyed by deal-hunting investors and a possible safety seekers looking to combat tension in Europe. June-dated gold popped $17, or 1.1%, to settle at $1,591.90 an ounce. For the week, the precious metal inched 0.5% higher.

Levels to Watch in Trading :

  • Dow Jones Industrial Average (DJI - 12,369.38) - support at 11,500; resistance at 14,000
  • S&P 500 Index (SPX - 1,295.22) - support at 1,100; resistance at 1,500
  • Nasdaq Composite (COMP - 2,778.79) - support at 2,400; resistance at 3,400






For today's notable annual highs and lows, click here .


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 Nasdaq, Inc.

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

This article appears in: Investing , Options
Referenced Symbols: AAPL , FB , HPQ , RENN , WMT

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