"It was a mixed-up kind of day, as retail sales data was weak,
yet the manufacturing data was strong. Then we saw Citigroup Inc. (
C
) up strong on earnings, only to finish near its session lows,"
said Schaeffer's Senior Technical Strategist Ryan Detrick. "The
next few days will tell us a lot about how earnings are panning
out. So, it's tough to make much out of today's action." With that,
the
Dow Jones Industrial Average (DJI)
seemed to forget all about Friday's rally and gave way to a seventh
loss in eight sessions.
Keep reading to see what else was on our radar today:
-
5 reasons
why you should
bet on a second-half rally
.
- Find out who's in the driver's seat during
July options expirations week
.
- Plus,
Bernie Schaeffer
checks out the
euro's pullback to historically significant technical
support
.
And now, a look at the numbers...
Although the
Dow Jones Industrial Average (DJI - 12,727.21)
bounced from its session low of 12,690.05, the blue-chip barometer
still settled in negative territory, turning in a 49.9-point, or
0.4%, deficit. All but seven of the Dow's 30 components suffered
defeats, as JPMorgan Chase & Co.'s (
JPM
) 2.7% drop led the parade of laggards. Pfizer Inc.'s (
PFE
) 1.4% uptick led the bullish minority.
The
S&P 500 Index (SPX - 1,353.64)
couldn't escape the overall bearish mood on the Street today, and
posted a 3.1-point, or 0.2%, decline. Meanwhile, the
Nasdaq Composite (COMP - 2,896.94)
suffered a similar fate, and lopped off 11.5 points, or 0.4%, by
the close.
The
CBOE Market Volatility Index (VIX - 17.11)
charged 2.2% higher today, settling just below its intraday peak of
17.32.
Today's highlight
: "I was informed that I am the top performer at the mid-year mark
in a stock-picking contest that includes stock market gurus here in
Cincinnati," smiled Detrick. "Now, this doesn't count until the end
of the year, but my bullish calls on the housing and biotech
sectors have fueled some nice returns so far."
Turning to today's major market stories...
- How well does the SPX fare
during July options expiration week
?
- Schaeffer's Columnist Adam Warner examined the implications
of the
recent lows in the iPath S&P 500 VIX Short-Term
Futures ETN (NYSEARCA:VXX)
.
-
Option Trends
: eBay Inc. (
EBAY
), Sears Holdings Corporation (
SHLD
), and Urban Outfitters, Inc. (URBN).
- Analysts weighed in on
Arch Coal, Inc. (ACI)
,
Burger King Worldwide, Inc. (BKW)
, and
3M Company (MMM)
.
- Options bulls bet on a long-term upswing for
The Procter & Gamble Company (PG)
.
-
Wynn Resorts, Limited (WYNN)
and
Safeway Inc. (SWY)
saw pre-earnings front-month call activity soar.
- Call players swarmed
Ralph Lauren Corp (RL)
, despite its recent pullback.
- Schaeffer's Contributor Alan Knuckman uncovered the profit
potential for
going long on corn futures
.
-
Brinker International, Inc. (EAT)
and
GameStop Corp. (GME)
were among the standouts in today's action.
- Ryan Detrick on MarketWatch Radio:
Reasons to Expect a Second Half Rally
.
- Bernie Schaeffer On Charts:
Option Indicators Provide Cause for Caution on
TLT
and
A Red Flag for Euro Shorts
.
For today's activity in commodities, options, and more, head
to page 2.
Oil futures jumped for a fourth straight session today, as the
dollar weakened on a report showing that U.S. retail sales dropped
by more than predicted in June. By the close, crude for August
delivery added $1.33, or 1.5%, to climb to $88.43 a barrel.
On the other hand, gold futures turned lower, despite poorly
received retail data and a
warning about China's state of the economy
. Even though the greenback took a hit, August-dated gold slipped
40 cents, or 0.09%, to settle at $1,591.60 an ounce.
Many investors in the commodity space are also waiting to see
what comes of Federal Reserve Chairman Ben Bernanke's visit to
Congress over the next two days.
Levels to watch in trading...
-
Dow Jones Industrial Average (DJI - 12,727.21)
- support at 11,500; resistance at 14,000
-
S&P 500 Index (SPX - 1,353.64)
- support at 1,100; resistance at 1,500
-
Nasdaq Composite (COMP - 2,896.94)
- support at 2,400; resistance at 3,400
Click the links for coverage on today's
notable annual highs
and
notable annual lows
.
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
critical, timely and insightful report. If you enjoyed today's
edition of Market Recap,
sign up here
for free daily delivery straight to your inbox.