"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. (
) 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.
JPMorgan Chase (
) faced scrutiny from the SEC, Saks (
) reported a wider-than-expected quarterly loss, and
) received a pre-earnings bullish brokerage note.
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 (
) analyst-induced gain of 1.7%, while JPMorgan Chase (
) paced the 23 decliners with a loss of 2.7%. Cisco Systems (CSCO)
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.
Nasdaq Composite (COMP - 3,589.09)
dropped 13.7 points, or 0.4%.
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.
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 (
) 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."
- Saks (
) reported a
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.
- Search engine behemoth Google (GOOG) managed to climb higher
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).
5 Stocks We Were Watching Today
received some bullish brokerage attention ahead of Wednesday's
post-close quarterly earnings report.
- Near-term traders remained call-biased toward
, with a particular focus on weekly options.
- Analysts at Jefferies downwardly revised their price target
, despite the stock's recent gains.
- Call sellers piled up on
, and wagered on continued resistance for the graphic chip
saw a flurry of options activity from short-term put players and
longer-term call traders.
For a look at today's options movers and commodities
activity, head to page 2.
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.
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