"The broad market struggled to stay afloat early on, as news
from Bank of America Corp (
) suspending its previously announced capital actions hit the wires
before the open," summarized Schaeffer's Senior Equity Analyst Joe
Bell, CMT. "This notably caused the financial sector to lag, but
overall it was an extremely mixed day, with small-caps
Dow Jones Industrial Average (DJI)
traded in a 188-point range and spent time on both sides of the
flat line, before ending half a percent higher.
Trading Topic of the Week
Continue reading for more on today's market, including
-- Tips to Trade Like the Pros:
Trade on data, not emotions
. How do you avoid getting chewed up by the panic/euphoria machine?
By suppressing your fight-or-flight reflex and trading on facts and
Dow Jones Industrial Average (DJI - 16,448.74)
started its day solidly higher, dipped into the red by the early
afternoon, and ultimately closed up 87.3 points, or 0.5%. Pfizer
) led the Dow's 22 advancers with an M&A-related jump of 4.2%,
while Nike Inc (NKE) paced the eight decliners, shedding 1.4%.
It was also a rocky session for the
S&P 500 Index (SPX - 1,869.43)
, which swung as high as 1,877 and as low as 1,850 during the day.
The large-cap index eventually ended with a gain of 6 points, or
Nasdaq Composite (COMP - 4,074.40)
again underperformed, closing down 1.2 points, or less than 0.1%,
despite several peeks into positive territory.
CBOE Volatility Index (VIX - 13.97)
settled slightly lower on the day, off 0.1 point, or 0.6%, after
hitting an intraday peak of 15.28.
A Trader's Take
"Despite today's intraday volatility and chaotic price action,
many major market indexes are not far from all-time highs," noted
Bell. "Also encouraging today was the strength seen amid news of
increased merger and acquisition activity in the healthcare
5 Items on Our Radar Today
- The U.S. announced
additional sanctions against Russia
for its involvement in the rebellion in Ukraine. Seven leaders in
the Russian government and 17 companies were impacted, and
certain licenses for selected U.S. exports to Russia were also
restricted. In response, an adviser with the Kremlin dismissed
the sanctions as having "little significance."
(Reuters, via CNBC)
- Pfizer Inc. (
) confirmed that
it remains interested in acquiring
British drug maker AstraZeneca plc (ADR) (AZN), despite being
previously rebuffed. The current deal on the table is worth
roughly $100 billion, but PFE said today it is willing to pay a
"significant premium" over the stock's April 17 closing price.
- The National Association of Realtors said its
pending home sales index
rose 3.4% to 97.4 in March, topping economists' expectations.
What's more, it was the reading's first increase in nine months.
Year-over-year, however, pending home sales have slipped 7.9%.
J.C. Penney Company, Inc. (
continued to gain ground on no news, prompting long call buying
among weekly options traders.
- Bearish options traders are continuing to target
Zillow Inc (Z)
, even as the stock has outperformed on the charts.
For a look at today's options movers and commodities
activity, head to page 2.
Oil futures inched higher on Monday, as investors considered the
impact of additional sanctions on Russia. By the close, the
June-dated contract had gained 24 cents, or 0.2%, to $100.84 per
barrel, as continued concerns about U.S. supplies limited
Gold futures dipped lower, settling south of the $1,300 mark.
Gold for June delivery lost $1.80, or 0.1%, on the day, to finish
at $1,299 an ounce. Potentially impacting the yellow metal was news
of abandoned merger talks between Newmont Mining Corp (NEM) and
Barrick Gold Corporation (USA) (ABX).
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