"It was another typical August day," quipped Schaeffer's Senior
Technical Strategist Ryan Detrick, CMT. "Volume was extremely
light, and there was little news on the day. Still, the bulls once
again came in late in the session and pushed the markets well off
the intraday lows." Nevertheless, the
Dow Jones Industrial Average (DJI)
finished the day -- and week -- on a down note.
Continue reading for more on today's market, including
Wholesale inventories edge lower, Priceline.com (
) enjoys an earnings-induced rally, and T-Mobile (
) receives some bullish analyst attention.
Dow Jones Industrial Average (DJI - 15,425.51)
sank all the way to a session low of 15,346.65 just before noon
today, but managed to recover some of its losses to finish 72.8
points, or 0.5%, lower. On a weekly basis, the blue-chip barometer
shed 1.5% -- its first weekly decline in seven. The Dow's five
advancers were led by Alcoa's (AA) gain of 3.9%, while Walt Disney
(DIS) paced the 25 decliners with a loss of 1.6%.
S&P 500 Index (SPX - 1,691.42)
narrowed its morning losses, but still ended the session with a
decline of 6.1 points, or 0.4% -- falling back below its 10-day
moving average. Meanwhile, the
Nasdaq Composite (COMP - 3,660.11)
shaved off 9 points, or 0.3%, on the day. For the week, the indexes
were off 1.1% and 0.8%, respectively.
CBOE Market Volatility Index (VIX - 13.41)
climbed to an intraday high of 13.66, and finished the session 0.7
point, or 5.3%, higher -- its first close above 13 since July 31.
On the week, the "fear gauge" advanced 11.9%.
A Trader's Take
"Small- and mid-caps continued to lead," said Detrick. "Although
we are in a consolidation period in the overall broader markets, it
is always nice to see the smaller and more aggressive names
leading. Just today we were discussing how this correction could
very well come in the form of time, not price. In other words,
after a big rally, maybe some sideways movement to catch our breath
is warranted. That could be what we are looking at now."
3 Things to Know About Today's Market
- The Commerce Department said
slipped by 0.2% in June, which followed May's decrease of 0.6%.
This latest drop marked a third consecutive monthly decline --
the longest down streak in nearly four years. Economists were
expecting an increase of 0.4%.
- Word on the Street is that BlackBerry (BBRY) is
contemplating going private
, in an attempt to make some much-needed changes without public
scrutiny. Despite these rumors, however, there are no deals on
the table yet, and the ailing firm would need to find a buyer --
as well as adequate funding -- to make this a reality.
- Priceline.com (
) reported an
adjusted second-quarter profit
of $9.70 per share, topping consensus estimates for earnings of
just $9.36 per share. Meanwhile, revenue surged by 27% to $1.68
billion. Additionally, gross bookings climbed by 38% to $10.1
5 Stocks We Were Watching Today
scored a pair of price-target hikes after revealing a substantial
increase in second-quarter wireless subscribers.
- Bullish near-term traders honed in on
ahead of next week's second-quarter earnings report.
- Weaker-than-expected quarterly earnings results triggered a
downward price-target adjustment for
Monster Beverage (MNST)
- Call volume ramped up on
Bank of America (BAC)
, with a focus on the front-month series of options.
- One speculator constructed a synthetic long play on
Sirius XM Radio (SIRI)
by utilizing January-dated calls and puts.
For a look at today's options movers and commodities
activity, head to page 2.
Crude oil futures closed higher today, thanks to a positive
industrial production report out of China, as well as a stronger
forecast for global demand from the International Energy Agency. By
the time the dust settled, September-dated crude added $2.57, or
2.5%, to end at $105.97 per barrel. For the week, however, crude
was down 0.9%.
Meanwhile, gold futures were buoyed by the same overseas data,
and subsequently notched their third daily advance in a row. The
December-dated contract rose $2.30, or 0.2%, to close at $1,312.20
an ounce. On a weekly basis, the malleable metal edged up 0.1%.
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