Dow Jones Industrial Average Extends Losing Streak to Four Days

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"Some history was made today, as the Dow Jones Industrial Average (DJI) dropped for its fourth straight day," pointed out Schaeffer's Senior Technical Strategist Ryan Detrick, CMT. "This was the first time this calendar year that has happened, with the Dow making it clear to 158 days before seeing four consecutive drops. This was the longest streak to start off a year since 143 days in 1954. In the end, it was more of the same, as worries over higher rates pushed the market lower." On that note, the blue-chip barometer finished solidly south of breakeven.

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

  • Schaeffer's Senior Trading Analyst Bryan Sapp explains his "guilty until proven innocent" mindset amid notable increases in bond yields, as well as the recent break of 1,675 on the S&P 500.
  • Options sellers loaded up on Barnes & Noble, Inc. ( BKS ) puts as the firm prepares to report quarterly earnings ahead of tomorrow's opening bell.
  • In case you missed it: Schaeffer's contributor Adam Warner theorizes as to why the CBOE Volatility Index (VIX) has failed to spike , despite the market's Fed-induced downturn.
plus...
    JPMorgan Chase ( JPM ) faced scrutiny from the SEC, Saks ( SKS ) reported a wider-than-expected quarterly loss, and Hewlett-Packard ( HPQ ) received a pre-earnings bullish brokerage note.

The Dow Jones Industrial Average (DJI - 15,010.74) was docked in negative territory for most of the session, and ended up shedding 70.7 points, or 0.5%, on the day -- closing just slightly above its intraday low of 15,005.42. The Dow's six advancers were led by Intel's ( INTC ) analyst-induced gain of 1.7%, while JPMorgan Chase ( JPM ) paced the 23 decliners with a loss of 2.7%. Cisco Systems (CSCO) remained unchanged.

The S&P 500 Index (SPX - 1,646.06) suffered a similar fate, finishing a hair north of its session low of 1,645.84, and losing 9.8 points, or 0.6%, by the close. Meanwhile, the Nasdaq Composite (COMP - 3,589.09) dropped 13.7 points, or 0.4%.

Conversely, the CBOE Market Volatility Index (VIX - 15.10) settled just south of its intraday high of 15.20, gaining 0.7 point, or 5.1%, for the session.

CLOSING SUMMARY - INDICES

CLOSING SUMMARY - NYSE AND NASDAQ

A Trader's Take :

"There wasn't much news, but the big action to me is in housing stocks," said Detrick. "Once again, they were hit hard, as rates keep moving higher. What is interesting here is that most of the housing data we've seen this year has been positive, yet housing stocks have lagged. In fact, housing is one group we've seen a lot of optimism on this year, compared to the previous skeptical attitude from the past few years. Of course, that was when housing was one of the strongest sectors...Funny how that works, huh?"

3 Things to Know About Today's Market :

  • Shares of JPMorgan Chase ( JPM ) backpedaled today, amid reports that the Securities and Exchange Commission (SEC) is investigating the banking giant's hiring tactics in China . Specifically, the probe will dig further into allegations that the company employed children of Chinese officials in order to benefit from these connections. A spokesperson for the company said, "We publicly disclosed this matter in our 10-Q filing last week, and are fully cooperating with regulators." (Bloomberg)
  • Saks ( SKS ) reported a second-quarter loss of $19.6 million, or 13 cents per share, down from a loss of $12.3 million, or 8 cents per share, in the year-ago period. Excluding items, the retailer lost 10 cents per share -- two pennies worse than the consensus view. Meanwhile, revenue climbed by 0.5% to $707.8 million. (Reuters)
  • Search engine behemoth Google (GOOG) managed to climb higher on the ninth anniversary of its IPO . Since going public for $85 per share back in 2004, the stock has soared 900% -- a feat surpassed by only nine other equities over the same time frame, including Priceline.com (PCLN), Apple (AAPL), Netflix (NFLX), and Salesforce.com (CRM). (CNBC)

5 Stocks We Were Watching Today :

  1. Hewlett-Packard ( HPQ ) received some bullish brokerage attention ahead of Wednesday's post-close quarterly earnings report.
  2. Near-term traders remained call-biased toward QUALCOMM (QCOM) , with a particular focus on weekly options.
  3. Analysts at Jefferies downwardly revised their price target for BlackBerry (BBRY) , despite the stock's recent gains.
  4. Call sellers piled up on NVIDIA (NVDA) , and wagered on continued resistance for the graphic chip maker.
  5. Groupon (GRPN) saw a flurry of options activity from short-term put players and longer-term call traders.

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 snapped their six-day winning streak, as Wall Street keeps a close eye on unrest in the Middle East for signs of potential supply disruptions. By the closing bell, September-dated oil lost 36 cents, or 0.3%, to settle at $107.10 per barrel.

Meanwhile, gold futures also finished in the red, after notching a weekly gain last Friday. The December-dated contract shaved off $5.30, or 0.4%, to end at $1,365.70 an ounce.

SCHAEFFER'S MARKET POSTURE



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This article appears in: Investing , Options

Referenced Stocks: BKS , HPQ , INTC , JPM , SKS

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