Dow Ends Nearly Flat After a Quiet Day

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"Today was really just more of the same," mused Schaeffer's Senior Equity Analyst Joe Bell, CMT. "With a lack of major news events and the market being a little overextended, we experienced another choppy session without a lot of movement. The good news was that the early selling was met with a rush of buyers that allowed the markets to finish near breakeven." Such was the case for the Dow Jones Industrial Average (DJI) , which closed modestly lower.

Continue reading for more on today's market, including :

  • Schaeffer's Senior Trading Analyst Bryan Sapp opines that Thursday's economic lineup could have a "fairly dramatic impact" on the market, and takes a closer look at Smith & Wesson ( SWHC ).
  • This week's Short Interest Update highlights three stocks with upside potential, from a contrarian point of view.
  • The latest edition of The Week Ahead notes upcoming events for F5 Networks ( FFIV ), Wal-Mart ( WMT ), and American International Group ( AIG ).
plus...
    Japan reported sluggish gross domestic product figures, BlackBerry ( BBRY ) pondered putting itself up for sale, and Apple (AAPL) received a bearish brokerage note.

The Dow Jones Industrial Average (DJI - 15,419.68) spent time on both sides of breakeven today, and ended up closing just 5.8 points, or 0.04%, lower. Caterpillar (CAT) led the blue-chip barometer's 15 advancers with a gain of 2.1%, while Walt Disney (DIS) once again paced the 15 laggards with a decline of 1.2%.

The S&P 500 Index (SPX - 1,689.47) followed a similar path, and closed with a loss of 2 points, or 0.1%. Conversely, the Nasdaq Composite (COMP - 3,669.95) finished in the black, adding 9.8 points, or 0.3%.


The CBOE Market Volatility Index (VIX - 12.81) ended the day 0.6 point, or 4.5%, lower -- slightly north of the session low of 12.80 it tagged just before noon.

CLOSING SUMMARY - INDICES

CLOSING SUMMARY - NYSE AND NASDAQ

A Trader's Take :

"With earnings season pretty much wrapping up, I would say the results have been pretty good," noted Bell. "Most of the major sectors reported results that were better than expected, and it looks like this will mark the third consecutive quarter of positive earnings growth. Financials stood out above the rest with a stellar quarter."

3 Things to Know About Today's Market :

  • The Japanese government said the region's gross domestic product for the second quarter grew at a yearly pace of just 2.6%, falling short of the consensus view. Adding insult to injury, growth for the first quarter was downwardly revised to 3.8% from the initial estimate of 4.1%. (MarketWatch)
  • Following Friday's buzz that BlackBerry ( BBRY ) is not opposed to going private , today's news suggests that the smartphone maker may also consider putting itself up for sale . According to a company statement, BBRY established a special committee to strategize over which move the firm should make next. (CNBC, Bloomberg)
  • Chatter on Wall Street suggests that Twitter may be preparing to file for an initial public offering as early as 2014. Although the firm denied that such a move is imminent, the company posted a job listing on LinkedIn -- which has since been deleted -- to find a financial reporting manager, and recently hired a stock administration analyst. (CNBC)

5 Stocks We Were Watching Today :

  1. Analysts at Nomura and Stifel Nicolaus upwardly revised their respective price targets for Micron Technology (MU) .
  2. Front-month call buyers targeted Groupon (GRPN) following the company's well-received earnings report.
  3. Apple (AAPL) -- which is likely debuting its new iPhone in September -- was slapped with a price-target cut this morning.
  4. Bearish traders wagered on longer-term losses for Nokia (NOK) by picking up January-dated puts.
  5. Near-term speculators turned bullish on Baidu.com (BIDU) , despite today's sluggish price action.

EARNINGS

For a look at today's options movers and commodities activity, head to page 2.

STOCKS - NOTABLE CALL ACTIVITY

STOCKS - NOTABLE PUT ACTIVITY

Commodities :

Crude oil futures edged slightly higher ahead of this week's barrage of economic data. By the time the closing bell rang, September-dated crude tacked on 14 cents, or 0.1%, to end at $106.11 per barrel.

Likewise, gold futures climbed for a fourth straight session, despite the lack of notable news drivers. The December-dated contract gained $22, or 1.7%, to finish at $1,334.20 an ounce.

SCHAEFFER'S MARKET POSTURE



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

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



This article appears in: Investing , Options

Referenced Stocks: AIG , BBRY , FFIV , SWHC , WMT

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