"The broad markets fared a little better today, as select
consumer discretionary names performed quite well on the earnings
front," said Schaeffer's Senior Equity Analyst Joe Bell of today's
trading, which saw the
Dow Jones Industrial Average (DJI)
break back through the 14,000 level. "The positive momentum keeps
on coming. After six straight positive weeks for the S&P 500
(SPX), many are expecting some consolidation or a pullback. Despite
the skeptics, the market just keeps on grinding higher."
Continue reading for more on today's market, including
- The 8 reasons Senior Options Strategist Tony Venosa, CMT,
thinks Citigroup (
for a long trade.
- Why Senior Trading Analyst Bryan Sapp blames Tuesday's
weakness in tech stocks
on a lukewarm speech from the top dog at Apple (
- Bearish option traders are looking for Cisco Systems (
continue to slide
through the end of the week.
- A positive day on the market, Apple's (
) CEO plays down shareholder suit, and how short-term traders
were hoping General Motors (
) breaks through a key barrier.
Dow Jones Industrial Average (DJI)
powered through some disappointing results from Coca-Cola (
) and managed to more than overcome the losses incurred the
previous day, gaining more than 47 points, or 0.3%, to close at
14,018.70, the first time since Feb. 1 that the Dow has closed
above 14,000. The blue-chip index also reached a new multi-year
high of 14,038.97 in afternoon trading. Bank of America (BAC) led
the 23 companies that advanced on the 30-member Dow with a 3.3%
jump. KO had the biggest drop of the six decliners, falling 2.7% on
its earnings results -- Wal-Mart (WMT) was unchanged.
S&P 500 Index (SPX)
also gained, picking up more than 2 points, or nearly 0.2%, to
close at 1,519.43 after hitting another new five-year peak of
1,522.29. Brought down by another decline in tech stocks, the
Nasdaq Composite (COMP)
fell nearly 6 points, or 0.2%, to finish at 3,186.49.
CBOE Volatility Index (VIX)
finished at 12.64, down 0.3 points, or 2.3%.
A Trader's Take
) was one again in the news, as CEO Tim Cook made several comments
on the company's future at a Goldman Sachs Conference," Bell noted.
"The comments weren't viewed in a favorable light, as AAPL lost
ground and dragged the Nasdaq (COMP) down with it."
3 Things to Know About Today's Market
- As noted, most market watchers spent the morning parsing
from Apple (
) CEO Tim Cook, who affirmed Apple is not just a software maker
and said a shareholder suit over preferred shares is "a silly
- The effort to turn computer maker Dell Inc. (DELL) private
hit another snag
, with one of its largest outside investors declining to support
- The Group of Seven (G7) leading industrial nations sought to
rhetoric surrounding the possibility of a "currency war," saying
such actions would drag down any economic recovery efforts.
5 Stocks We Were Watching Today
- General Motors (
that the automaker would rebound from technical support.
- Bullish speculators are counting on Applied Materials (AMAT)
the $13 level through next month.
- MGIC Investment Corp. (MTG) announced its earnings release
date for later this month, and was
with a flurry of pessimistic put buyers.
- This morning's stellar earnings release and improved guidance
figures from Michael Kors Holdings Ltd (KORS) could be
a big boon
to traders who bought a barrage of calls on Monday.
- A new annual high from Citigroup Inc. (
) drew a swarm of bullish investors looking to
by the end of this week.
For a look at today's options movers and commodities
activity, head to page 2.
An upwardly revised demand forecast from the Organization of
Petroleum Exporting Countries (OPEC) led to an increase in crude
futures on Tuesday. Oil for March delivery advanced 48 cents, or
0.5%, to finish at $97.51 per barrel.
A weaker U.S. dollar helped gold futures to cut the worst of
Monday's decline. April-dated gold edged up 50 cents, or 0.03%, to
close at $1,649.60 per ounce.
At the end of every market day, the staff at Schaeffer's
Investment Research reviews the trading day in detail, covering
major events and key market developments. Don't miss this
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