Dow Swoons 168 Points; SPX Approaches Key 1,360 Level

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The Dow Jones Industrial Average (DJI) turned south right out of the gate this morning, and was mired in red ink all day long. "The jobs data was definitely a major disappointment," reflected Senior Technical Strategist Ryan Detrick. "I'm not sure if we can call this weakness in the jobs data a trend quite yet, but it sure better turn around soon. Some very important upcoming elections in both France and Greece are also adding to the jitters."

Keep reading to see what else was on our radar today:

  • Why does Detrick have his eye trained on SPX 1,360 ?
  • Crude oil plummeted below the century mark.
  • Plus, the VIX vaulted higher as panic swept the Street.
And now, a look at the numbers...

CLOSING SUMMARY - INDICES

CLOSING SUMMARY - NYSE AND NASDAQ


The Dow Jones Industrial Average (DJI - 13,038.27) hacked off 168.32 points, or 1.3%, settling just above its midday low of 13,022.34. All 30 blue chips finished in negative territory, as Bank of America ( BAC ) and Cisco Systems ( CSCO ) paced the laggards with declines of 3.3% and 3%, respectively. The Dow pulled back 1.4% for the week.

The S&P 500 Index (SPX - 1,369.10) ended a second straight day below 1,400, falling 22.5 points, or 1.6%, in the process. Meanwhile, the Nasdaq Composite (COMP - 2,956.34) suffered a loss of 68 points, or 2.3%. Over the past five sessions, the SPX lost 2.4%, while the COMP declined 3.7%.

The CBOE Market Volatility Index (VIX - 19.16) jumped 9% by the closing bell, ending below its intraday peak of 19.28, and solidifying its highest settlement since April 16. For the week, the VIX gained 17.4%.

Newsmakers...

Nonfarm payrolls expanded by 115,000 in April, said the Labor Department , falling short of consensus estimates for a gain of 168,000. On the plus side, the unemployment rate backpedaled to 8.1%, besting expectations for an unchanged reading of 8.2%. Additionally, payrolls for February and March were upwardly revised by a combined total of 53,000.

Today's highlight : "The SPX is less than 1% away from the 1,360 area," noted Detrick. "This region served as support back in April, and should it be violated, it could be a sign that this week's weakness could be more lasting."

Turning to today's major market stories...

For today's activity in commodities, options, and more, head to page 2.

Due to a disappointing jobs report, oil futures dipped below $100 and retreated to a third straight loss. By the close, June-dated crude burned off $4.05, or 4%, to end at $98.49 a barrel -- its lowest price since Feb. 7. Ongoing concerns about global demand weighed on the commodity, knocking it down 6.1% for the week.

Conversely, gold futures reversed their four-day slide, as the weak jobs data was a boon for the precious metal. As speculators sought out the commodity's safe-haven appeal, gold for June delivery added $10.40, or 0.6%, to land at $1,645.20 an ounce. However, gold turned in a 1.2% deficit for the week.

Levels to Watch in Trading :

  • Dow Jones Industrial Average (DJI - 13,038.27) - support at 11,500; resistance at 14,000
  • S&P 500 Index (SPX - 1,369.10) - support at 1,100; resistance at 1,500
  • Nasdaq Composite (COMP - 2,956.34) - support at 2,400; resistance at 3,400

OUTPERFORMING AND UNDERPERFORMING SECTORS

STOCKS - MOVERS

STOCKS - EARNINGS

STOCKS - NOTABLE CALL ACTIVITY

STOCKS - NOTABLE PUT ACTIVITY

For today's notable annual highs and lows, click here .

SCHAEFFER'S MARKET POSTURE

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.



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.

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This article appears in: Investing , Options

Referenced Stocks: ANR , BAC , CSCO , WFM , ZIP

Schaeffer's Investment Research

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