Dow Falters, Snaps Weekly Winning Streak

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"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 :

plus...
    Wholesale inventories edge lower, Priceline.com ( PCLN ) enjoys an earnings-induced rally, and T-Mobile ( TMUS ) receives some bullish analyst attention.

The 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%.

Similarly, the 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.

The 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%.

CLOSING SUMMARY - INDICES

CLOSING SUMMARY - NYSE AND NASDAQ

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 wholesale inventories 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%. (Bloomberg)
  • 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. (CNBC)
  • Priceline.com ( PCLN ) 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 billion. (Reuters)

5 Stocks We Were Watching Today :

  1. T-Mobile ( TMUS ) scored a pair of price-target hikes after revealing a substantial increase in second-quarter wireless subscribers.
  2. Bullish near-term traders honed in on Macy's (M) ahead of next week's second-quarter earnings report.
  3. Weaker-than-expected quarterly earnings results triggered a downward price-target adjustment for Monster Beverage (MNST) .
  4. Call volume ramped up on Bank of America (BAC) , with a focus on the front-month series of options.
  5. One speculator constructed a synthetic long play on Sirius XM Radio (SIRI) by utilizing January-dated calls and puts.

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 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%.

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.

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This article appears in: Investing , Options

Referenced Stocks: AAPL , EMC , PCLN , TIF , TMUS

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