After five sessions of gains -- and more than one new all-time
high -- the
Dow Jones Industrial Average (DJI)
succumbed to selling pressure today, ending the day with a
triple-digit deficit. Elsewhere, "The S&P 500 Index (SPX) is
clearly facing some pretty stiff technical resistance near the
1,900 round-number level, which is near the site of its former
all-time high from April," noted Schaeffer's Senior Equity Analyst
Joe Bell, CMT. "Couple that with the less-than-stellar economic
data so far this week, and investors are looking to take some risk
off the table."
Trading Topic of the Week
Continue reading for more on today's market, including
-- Ways to Interpret Short Interest:
Review the recent trend
. Have shorts been covering their bearish bets, or ramping them up?
Dow Jones Industrial Average (DJI - 16,613.97)
spent nearly all of the day moving further into negative territory,
before closing down 101.5 points, or 0.6%. The pullback was
broad-based, as 25 of the Dow's 30 components ended lower, paced by
International Business Machines Corp. (
), which dropped 1.8%. Leading the five advancers today was Merck
& Co., Inc. (
), rising 1.1%.
S&P 500 Index (SPX - 1,888.53)
retreated as well, closing with a loss of 8.9 points, or 0.5%. The
Nasdaq Composite (COMP - 4,100.63)
continued its pullback, shedding 29.5 points, or 0.7%, by the
CBOE Volatility Index (VIX - 12.17)
bounced slightly from recent losses, edging up less than 0.1 point,
or 0.3%, today.
A Trader's Take
"Whether the market is up or down, it seems like small caps
continue to trail their counterparts," continued Bell. "Consumer
discretionary stocks are among the biggest laggards, and
yesterday's worse-than-expected retail sales number and recent
earnings results aren't helping their cause."
5 Items on Our Radar Today
- Wholesale prices posted their
largest increase in over a year
in April, reported the Labor Department. The PPI climbed 0.6% --
the biggest jump since September 2012 -- to top economists'
expectations. The core PPI, which excludes food and energy
factors, rose 0.5%, also exceeding the consensus estimate.
(Los Angeles Times)
- The yield on the 10-year Treasury note
dipped to a six-month low
of 2.525%. The move raised a flag, as some consider the 2.6%
level a "risk-off" point at which traders begin to exit their
Tesla Motors Inc (
options buyers took advantage of bargain-basement pricing.
- Nomura reduced its price target on
Google Inc (GOOGL)
this morning, while other tech heavyweights faced negative
- Fresh from a new 12-year high,
Micron Technology, Inc. (MU)
was targeted by back-month put buyers today.
For a look at today's options movers and commodities
activity, head to page 2.
June crude futures rose to a three-week high, amid declining
supplies and increased expectations for rising seasonal oil demand.
The most active contract added 67 cents, or 0.7%, by the close, to
end the session at $102.37 per barrel.
Gold rebounded today, as continued Ukraine-related worries and a
slump in U.S. equities bolstered the yellow metal's appeal. The
June-dated contract climbed $11.10, or 0.9%, to settle at $1,305.90
an ounce, gold's first close north of $1,300 in more than a
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