Dow Posts First Weekly Loss Since Mid-April

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"Though the day started off with a better-than-expected durable goods report, most participants still looked to unload their positions ahead of the holiday weekend," observed Schaeffer's Senior Equity Analyst Joe Bell, CMT. "After early selling, we once again saw a midday surge that sent indices back near breakeven by the close." In a pattern reminiscent of Thursday, the Dow Jones Industrial Average (DJI) dropped into the red at the open, only to pare its losses by the closing bell. This was a hollow victory, though, as the index suffered its first losing week since April 19.

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

plus...
    Meet the Procter & Gamble ( PG ) new boss (same as the old boss), and Sears Holdings ( SHLD ) options bears rush in.

The Dow Jones Industrial Average (DJI) recovered from a negative start, clawing its way to a gain of 8.6 points, or 0.06%, by the close. Procter & Gamble ( PG ) led the 14 gainers, rising 4.0%, while Hewlett-Packard ( HPQ ) paced the 15 laggards, down 2.6%. DuPont (DD) finished flat. The Dow ended at 15,303.10, off 0.3% from last Friday's close.

The S&P 500 Index (SPX) bounced from its intraday nadir of 1,636.88, but closed with a fractional loss of 0.9 point, or 0.06%, at 1,649.60, just a hair south of the round-number 1,650 mark. The Nasdaq Composite (COMP) was off just 0.3 point, or 0.01%, to finish the week perched at 3,459.14. On a weekly basis, both the SPX and the COMP gave back roughly 1.1%.

The CBOE Market Volatility Index (VIX) ended close to breakeven as well, down less than 0.1 point, or 0.6%, at 13.99. This week, however, the VIX managed to add 12.4%.

CLOSING SUMMARY - INDICES

CLOSING SUMMARY - NYSE AND NASDAQ

A Trader's Take :

"Consumer staples were the one sector to really buck the trend this morning," observed Bell. "Most of the credit has to go to Procter & Gamble, as the Dow component jumped 4% after announcing the return of former CEO Alan Lafley."

3 Things to Know About Today's Market :

  • Durable goods orders rose by 3.3% in April, the Commerce Department reported. This was a wider jump than economists had expected, partially due to accelerated aircraft orders at Boeing (BA). The jet maker signed 51 orders for new planes last month, up from 39 in March. (Reuters)
  • Procter & Gamble ( PG ) rose in trading today, after the consumer-products giant appointed former CEO A.G. Lafley to the joint chairman and CEO roles. He will assume the reins at the end of June, when outgoing CEO Robert McDonald takes his leave. (Bloomberg Businessweek)
  • St. Louis Federal Reserve Bank President James Bullard said inflation is the "wild card" keeping the central bank from making any moves away from its current bond-buying plans. "Before I am in favor of tapering [these efforts]," I would like to see some assurance that inflation is going to move back towards target," he told CNBC. (CNBC)

5 Stocks We Were Watching Today :

  1. After an earnings-spurred plunge, Sears Holdings ( SHLD ) saw a throng of put buyers emerge.
  2. Our Option Idea of the Week: Sodastream International (SODA) could be ready to bubble higher in the near term.
  3. On the heels of strong earnings, GameStop (GME) earned a price-target hike from BMO.
  4. Bearish option traders kept their focus on VMware, Inc. (VMW), as the stock continues to struggle .
  5. Molycorp Inc (MCP) option bulls tried to wrap up the week with a quick profit .

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 futures finished slightly lower today, tracking weakness in stocks. Oil for July delivery shed 10 cents, or 0.1%, to end the day at $94.15 per barrel. On a weekly basis, crude gave up 1.9%.

Gold prices also fell, as a solid report on U.S. durable goods kept buyers on the sidelines ahead of the Memorial Day weekend. June-dated gold lost $5.20, or 0.4%, to close at $1,386.60 per ounce. For the week, the precious metal advanced 1.6%.

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.

All Rights Reserved. Unauthorized reproduction of any SIR publication is strictly prohibited.


This article appears in: Investing , Options

Referenced Stocks: HPQ , MCD , PG , SHLD , TSLA

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