The
Dow Jones Industrial Average (DJI)
couldn't do much to make up for Friday's slide today, as many bulls
opted to stay home. "Jitters ahead of tonight's kick-off to
earnings season pushed us lower," said Schaeffer's Senior Technical
Strategist Ryan Detrick. "Volume wasn't too high, though, so we
didn't see any big sellers on the day. Given that overall
expectations are extremely low for second-quarter earnings, any
good news could potentially spark a nice rally."
Click through to see what else was on our radar today:
-
Bernie Schaeffer
examined how
sentiment helped steer the action
in the homebuilders ETF.
- Could the recent bounce in oil spawn a
downturn for the airlines sector
?
- Plus, two signs that
up the chances for a summertime upswing
.
And now, a look at the numbers...
The
Dow Jones Industrial Average (DJI - 12,736.29)
was off nearly 86 points at its session low of 12,686.57, but was
able to pare some of its losses and close down 36.2 points, or
0.3%. Half of the 30 blue chips tripped lower today, as DuPont (
DD
) paced the underperforming components with a 2.9% decline. Merck (
MRK
) led the fifteen wining issues with a 1.5% jump.
The
S&P 500 Index (SPX - 1,352.46)
also suffered a defeat, falling 2.2 points, or 0.2%. Meanwhile, the
Nasdaq Composite (COMP - 2,931.77)
dropped 5.6 points, or 0.2%.
The
CBOE Market Volatility Index
(VIX - 17.98)
notched a win today, climbing 5.2%, and settling below its session
high of 18.32.
Today's highlight
: "I loved seeing
two buyouts for significant premiums
," smiled Detrick. "Both FX Alliance (
FX
) and AMERIGROUP (
AGP
) were acquired for approximately 40% more than their closing
prices on Friday. Mergers and acquisitions news is always a bullish
sign, and should we continue to see this trend -- especially
coupled with a better-than-expected second-quarter earnings season
-- it could bode well for the second half of the year."
Turning to today's major market stories...
For today's activity in commodities, options, and more, head
to page 2.
Oil futures turned higher today, gaining back more than half of
Friday's
jobs-data induced sell-off
. The commodity was supported by a softer dollar and the escalating
likelihood of a shutdown in Norwegian oil production after labor
talks there ended with no resolution. By the close, crude for
August delivery added $1.54, or 1.8%, to settle at $85.99 a
barrel.
Gold futures got a similar boost from a weakening greenback, and
reclaimed some of last-week's deficit. The malleable metal also got
a lift from data out of China that showed
showed slowing inflation in June
. As bargain-hunting speculators returned from the sidelines,
August-dated gold gained $10.20, or 0.7%, to close at $1,589.10 an
ounce.
Levels to watch in trading...
-
Dow Jones Industrial Average (DJI - 12,736.29)
- support at 11,500; resistance at 14,000
-
S&P 500 Index (SPX - 1,352.46)
- support at 1,100; resistance at 1,500
-
Nasdaq Composite (COMP - 2,931.77)
- support at 2,400; resistance at 3,400
Click the links for coverage on today's
notable annual highs
and
notable annual lows
.
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.