"After such a strong rally in early January, it seems like the
market is continuing to take a breather here," said Schaeffer's
Senior Equity Analyst Joe Bell of today's trading. But he noted
that, "the market's ability to grind higher off its early morning
lows was a nice sign of strength." The
Dow Jones Industrial Average (DJI)
fell for the second straight day, but finished with the best
January since 1994. And while the blue-chip index backed down some,
that 14,000 mark is still in reach.
Continue reading for more on today's market, including
- The 10 reasons Senior Options Strategist Tony Venosa, CMT,
thinks SINA Corp (
) is a great setup for a
- Why today's price action in small-caps, transportation
stocks, and junk bonds "
bodes well for the market
," according to Senior Trading Analyst Bryan Sapp.
- Traders could be targeting
Ford Motor Company (
for a short-term rally.
- Mixed economic reports, Anheuser-Busch InBev (
) draws the ire of the DOJ and option bears, and the impact of
another delay from Take-Two Interactive Software (
Despite some mildly encouraging economic news, the
Dow Jones Industrial Average (DJI)
dropped for the second straight day, finishing at 13,860.58 after
falling nearly 50 points, or about 0.4%. Only nine companies
advanced on the 30-member Dow, led by The Travelers Companies (
), which jumped 1.1%. Verizon Communications Inc. (VZ) was
unchanged. United Technologies (UTX) had the biggest fall out of
the 19 decliners, dropping 1.7%. Despite the two-day losing streak
to close the month, the Dow jumped 5.8% in January, its best
opening month in almost two decades, and the best overall monthly
gain since October 2011.
S&P 500 Index (SPX)
also fell, dropping nearly 4 points, or 0.3%, to close at 1,498.11.
The index failed to stay above the 1,500 mark after four
consecutive sessions above that threshold. Yet, it was the best
month for the SPX since October 2011, with the index climbing 5.0%
in January. The
Nasdaq Composite (COMP)
fell less than 1 point (0%) to finish at 3,142.13. For the month,
COMP climbed 4.1%.
CBOE Volatility Index (VIX)
finished at 14.3, down less than 0.1 point, or 0.3%. The VIX
finished above 14 for the second straight session, and above 13 for
the fourth straight day. Still, the VIX finished the month down
A Trader's Take
"The day got off to a fast start, as the market received
numerous economic data points and several company earnings
reports," Bell said. "Overall, the economic reports were mixed and
the market once again failed to make a major move in one direction
or the other."
3 Things to Know About Today's Market
- The day was chock-full of economic releases, including new
unemployment claims, personal spending and income, and a key
manufacturing index. Initial jobless claims
rose by 38,000
to a seasonally adjusted 368,000, a week after the indicator had
fallen to the lowest total number in five years. Personal income
and spending both climbed, by
2.6% and 0.2%,
respectively. And the Chicago Purchasing Managers Index
showed a big jump
to a healthy-trending 55.6%, its best reading since last April.
(Los Angeles Times; Time.com; MarketWatch)
- United Parcel Service, Inc. (UPS) delivered
for the fourth quarter and gave an outlook for 2013 that was
below current estimates.
- And overseas, Deutsche Bank AG (USA) (DB), Germany's largest
bank, reported a
fourth-quarter loss of $3 billion,
due to ongoing legal issues and write-downs on certain assets.
Company officials vowed to change the bank's reputation as one of
the most highly leveraged in Europe.
(New York Times)
5 Stocks We Were Watching Today
- Ciena Corporation (CIEN)
drew bullish traders in droves
, who were going against recent bearish trends.
- The U.S. Department of Justice's opposition to a proposed
merger sank shares of Anheuser-Busch Inbev (ADR) (
the short-term bears swooped in
- The Boeing Company's (BA) stronger-than-expected earnings
attracted lots of call action
, with optimists apparently discounting the ongoing grounding of
the 50-plane Dreamliner 787 fleet.
- News that video-game maker Take-Two Interactive Software,
) has delayed the launch of its flagship
Grand Theft Auto
game until September
created a lot of interest in short-term puts
- Options traders
were pessimistic in front of this week's
from Exxon Mobil Corporation (XOM), with puts trading at nearly
six times the normal pace.
For a look at today's options movers and commodities
activity, head to page 2.
Oil ended its winning streak today, as the March-dated contract
lost 45 cents, or 0.5%, to $97.49 per barrel. For the month,
however, black gold advanced 6.2%. Gold was lower as well, with the
most-active April contract giving back $19.60, or 1.2%, to close at
$1,662 per ounce. In January, the precious metal lost 0.8%.
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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