"Investors are waiting to digest several key economic reports
this week, and retail sales failed to impress this morning,"
observed Schaeffer's Senior Equity Analyst Joe Bell, CMT. "The
overall reaction of the market was that this report didn't show
much renewed strength from consumers after a terrible winter. In
response, we saw a mixed day from stocks and strength in bonds."
Still, this didn't stop the
Dow Jones Industrial Average (DJI)
S&P 500 Index (SPX)
from reaching new all-time intraday highs, though both had slightly
pared their respective gains by the close.
Continue reading for more on today's market, including
Trading Topic of the Week
- Analysts haven't wasted any time
weighing in on big names
such as J.C. Penney Company, Inc. (
) and Cisco Systems, Inc. (
) ahead of earnings.
- While Cinco de Mayo is behind us, you don't want to miss this
between Chipotle Mexican Grill, Inc. (
) and Taco Bell parent Yum! Brands, Inc. (
- Option players
rolled the dice on Keurig Green Mountain Inc (
, after The Coca-Cola Company (KO) upped its stake in the java
... Retail sales
budge, Microsoft Corporation (MSFT) rolls out a new gaming
device, and merger chatter overtakes Wall Street.
-- Ways to Interpret Short Interest:
Weigh the short interest ratio
. This handy little indicator tells you approximately how much
future buying power is pent up among the short-selling crowd.
Dow Jones Industrial Average (DJI - 16,715.44)
peaked at a new all-time high of 16,735.51 about an hour into the
session, but pared some of its gains by the close. At the bell, the
blue-chip index was up 20 points, or 0.1%, securing a new all-time
closing high as well. Microsoft Corporation (MSFT) led the Dow's 17
outperforming names, rising 1.8%, while CSCO brought up the rear,
losing 1.4% today.
S&P 500 Index (SPX - 1,897.45)
also reached a new peak -- hitting 1,902.17 this morning -- before
settling fractionally higher, up 0.8 point, at another new closing
Nasdaq Composite (COMP - 4,130.17)
lagged its peers, which was reminiscent of last week. The
tech-laden index ended the session off 13.7 points, or 0.3%.
CBOE Volatility Index (VIX - 12.13)
spent time on both sides of breakeven --visiting an intraday low of
12.05 mid-morning -- before ultimately closing down 0.1 point, or
A Trader's Take
"We continue to see rumors of mergers and acquisitions out
there," continued Bell. "The latest reports are that AT&T Inc.
(T) is close to offering $50 billion for DIRECTV (DTV), which would
be a major deal in the telecommunications sector. It's a good sign
that companies with tons of cash on their balance sheets continue
to see big-time value in this market."
5 Items on Our Radar Today
- Retail sales
were little changed in April
, edging up 0.1% amid declines at furniture and electronic
stores, as well as in restaurants and bars. The March number, on
the other hand, was revised higher to reflect a 1.5% increase,
the widest single-month jump in four years. Elsewhere,
business inventories rose
0.4% in March, falling just shy of economists' estimates. The
inventory-to-sales ratio was unchanged at 1.30.
(Reuters, via CNBC; MarketWatch)
- MSFT announced a
of its Xbox One gaming system. The cheaper version, which hits
shelves on June 9, comes without the Kinect feature, a voice- and
motion-sensing device. The model equipped with Kinect will still
be available for $499, but the new offering is designed to
provide "consumers choice at retail," noted a MSFT executive.
- Short- and intermediate-term put buyers targeted
Take-Two Interactive Software, Inc. (TTWO)
ahead of tonight's turn in the earnings confessional.
- Merger chatter continued to occupy the Street today. At the
forefront of the conversations were
AT&T and Pfizer Inc. (PFE)
Nokia Corporation (ADR) (NOK)
options speculator spent more than $555,000 on an
intermediate-term bullish bet .
For a look at today's options movers and commodities
activity, head to page 2.
Oil futures continued to climb in Tuesday's session, nearing a
three-week high in the process ahead of tomorrow's inventories
report. The June-dated contract rose $1.11 today, or 1.1%, to
settle at $101.70 per barrel.
Gold resumed its recent downtrend, as investors opted against a
safe-haven alternative amid global gains in equities. Gold for June
delivery lost $1, or 0.1%, on the day, settling at $1,294.80 an