"We experienced another mixed day of price action, as we
continue to trudge through earnings season," noted Schaeffer's
Senior Equity Analyst Joe Bell, CMT. "The
Dow Jones Industrial Average (DJI)
maintained a leadership role today, as DuPont (
) and United Technologies (
) reacted positively to their respective earnings reports.
Elsewhere, healthcare and biotechnology names showed relative
weakness." Thanks to this earnings-induced boost, the Dow tagged an
all-time intraday peak, while the S&P 500 edged within a
chip-shot of 1,700.
Continue reading for more on today's market, including
- Schaeffer's Senior Trading Analyst Bryan Sapp expands on the
market's "extremely quiet"
today, and points out NIKE's (
) bullish potential.
- This week's edition of
analyzes how traders have picked sides on three retailing
- Weekly bulls loaded up on QUALCOMM (
) calls as the firm prepares to
report quarterly earnings
after tomorrow's close.
Cisco Systems (
) acquires Sourcefire (FIRE), Starbucks (SBUX) takes on the yogurt
business, and pre-earnings bears pounce on Ford (F).
Dow Jones Industrial Average (DJI - 15,567.74)
spiked to a record intraday high of 15,604.22 within the first two
minutes of the session, and then gradually pulled back to an
intraday low of 15,544.06 by late morning. By the closing bell,
however, the blue-chip barometer gained 22.2 points, or 0.1%. The
Dow's 20 advancers were led by United Technologies' (
) surge of 3%, while Travelers Companies (TRV) paced the 10
laggards with an earnings-induced loss of 3.8%.
S&P 500 Index (SPX - 1,692.39)
climbed as far north as 1,698.78 today -- marking a second
consecutive day of new record intraday highs -- before turning
downward to finish 3.1 points, or 0.2%, lower. Meanwhile, the
Nasdaq Composite (COMP - 3,579.27)
shed 21.1 points, or 0.6%.
CBOE Market Volatility Index (VIX - 12.66)
was parked in the black for a large portion of the session, closing
0.4 point, or 3%, higher. However, the "fear gauge" is still on
pace to finish a third consecutive week below its 20-week moving
A Trader's Take
"Despite the markets being potentially overbought in the short
term, we continue to experience positive momentum," Bell went on.
"Right now, it's all about earnings, and so far, they've been
3 Things to Know About Today's Market
- In the latest M&A news, Cisco Systems (
) inked a deal to
acquire Sourcefire (FIRE)
, a cybersecurity company, for roughly $2.7 billion. This works
out to around $76 per share, representing a 29% premium to FIRE's
closing price on Monday.
- Netflix (NFLX) reported a
of $29 million, or 49 cents per share, yesterday, which surpassed
both consensus estimates and earnings figures from the year-ago
period. However, the stock stumbled today, as the number of newly
added subscribers fell short of Wall Street's expectations.
- Apparently Starbucks (SBUX) will be adding yogurt to its
product lineup next year. The java giant announced that it is
forming a partnership with
in an effort to expand its own Evolution Fresh brand. The first
offering -- a ready-to-eat Greek yogurt parfait -- will be
available in the spring.
5 Stocks We Were Watching Today
- Wunderlich Securities upped its price target for
Sirius XM Radio (SIRI)
ahead of the company's turn in the earnings confessional this
- Put buyers wagered on post-earnings downside for
by this Friday's close.
speculator rolled up a previous short call position.
- Bearish bettors were less than impressed with
Lumia 625 debut.
- Near-term call players ambushed
Advanced Micro Devices' (AMD)
August 4 strike once again.
For a look at today's options movers and commodities
activity, head to page 2.
Crude oil futures ended higher today, amid expectations that
tomorrow's weekly report will show a decline in crude inventories.
By the time the closing bell rang, September-dated oil was up 29
cents, or 0.3%, to finish at $107.23 per barrel.
Meanwhile, gold futures declined after notching their largest
daily price gain in over a year yesterday. By the closing bell, the
August contract slipped $1.30, or 0.1%, to end at $1,334.70 an
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