"Intel Corporation (
) had a disappointing earnings reaction, and tech was the big
laggard today," noted Schaeffer's Senior Technical Strategist Ryan
Detrick, CMT. "Nonetheless, it was basically another boring week,
and that isn't bad." (The
Dow Jones Industrial Average (DJI)
finished virtually flat for the week.) "Markets can correct two
ways, in price and in time. Well, we've been consolidating sideways
so far in 2014, so we're correcting in time, and there is nothing
wrong with that. After the huge rally we saw the final four months
of last year, some sideways action is normal and very healthy."
Continue reading for more on today's market, including
Consumer confidence dips -- and surprises economists -- the
housing market continues to show signs of life, and Lululemon
Athletica inc. (
) was the recipient of more bad news.
Dow Jones Industrial Average (DJI - 16,458.56)
spent time on both sides of breakeven, but ultimately closed 41.6
points, or 0.3%, higher, adding 0.1% for the week. The Dow's nine
advancers were led by Visa Inc (
), which added 4.7%, while Intel Corporation (
) brought up the rear, losing 2.6%.
S&P 500 Index (SPX - 1,838.70)
was in the red for nearly all of the session, and closed down 7.2
points, or 0.4%. Elsewhere, the
Nasdaq Composite (COMP - 4,197.58)
lagged its peers, surrendering 21.1 points, or 0.5%. On a weekly
basis, the SPX dropped 0.2%, while the COMP added 0.5%.
CBOE Volatility Index (VIX - 12.44)
slipped lower by the close, settling with a modest loss of 0.1
point, or 0.7%. This week, the market's "fear barometer" added
A Trader's Take
"American Express Company (
) reported very strong earnings and moved to a new high in
response," continued Detrick. "Also, housing starts were stronger
than expected, building on some of the better-than-expected
economic data we've seen the past month. All in all, earnings
season really kicks into overdrive next week, so be on your toes as
there could be a lot of movement in individual stocks. Everyone,
enjoy the three-day weekend, and we'll see you on Tuesday."
5 Items on Our Radar Today
- The Thomson Reuters/University of Michigan preliminary
reading on consumer confidence from January
dipped to 80.4 from 82.5
in December. This was a surprise to economists, who were
expecting the reading to increase.
- United Parcel Service, Inc. (UPS)
took a tumble today
after disclosing that its fourth-quarter earnings will fall short
of earlier projections. The shipping giant is attributing the
miss to the delivery problems faced during the holiday season.
- The Commerce Department reported that
housing starts dropped 9.8%
last month to a seasonally adjusted annual rate of 999,000, a
better reading than economists were expecting. For 2013, housing
starts rose 18.3% from the previous year, marking the strongest
pace of growth since 2007.
- Speculators hoping to capitalize on the housing sector's
rebound might be interested in our
Option Idea of the Week
PulteGroup, Inc. (PHM)
- Capping off a certifiably rocky week,
Lululemon Athletica inc. (
was swatted with a price-target reduction ahead of the open
For a look at today's options movers and commodities
activity, head to page 2.
Crude futures moved slightly higher to end at a two-week peak,
but concerns about energy demand kept gains to a minimum. By the
close, February-dated oil had added 41 cents, or 0.4%, to $94.37
per barrel. On a weekly basis, black gold rose 1.8%.
Gold futures gained ground as well, thanks in part to a surprise
drop in consumer sentiment readings. The February contract jumped
$11.70, or 0.9%, to settle the session at $1,251.90 an ounce, the
highest reading since mid-December. On a weekly basis, the precious
metal ticked just 0.4% higher.
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