"Say what you want about why the market dropped today, but it
could be as simple as a break was due after a great run," quipped
Schaeffer's Senior Technical Strategist Ryan Detrick, CMT. The
Dow Jones Industrial Average (DJI)
headed into negative territory out of the gate and was off nearly
180 points at its intraday low before closing down nearly 107
points. "The standard factors were cited as reasons for today's
decline -- concerns out of China, concerns about the Fed slowing
their asset purchases, weakness in Europe, etc. etc."
Continue reading for more on today's market, including
Banks are richer than ever, Intel (
) bears are starting to emerge, and Apple (
) strategists expect short-term gains.
Dow Jones Industrial Average (DJI)
traded south of breakeven all day, hitting an intraday nadir of
15,229.53 in late-morning action. By the closing bell, it had pared
some of its losses, down 107 points, or 0.7%, at 15,302.80. Of the
30 Dow members, 11 were higher on the day, with Hewlett-Packard (
) up 2.4% to lead the advancers. Coca-Cola (KO), meanwhile, brought
up the rear, declining 2.7%.
Trading was equally rocky for the
S&P 500 Index (SPX)
, which was down roughly 1.2% at its low-water point today. At the
end of the session, the SPX had shed 11.7 points, or 0.7%, to
1,648.36. Elsewhere, the
Nasdaq Composite (COMP)
breached its 10-day moving average and gave back 21.4 points, or
0.6%, to settle at 3,467.52.
Not surprisingly, the
CBOE Market Volatility Index (VIX)
rallied as a result of the aforementioned price action. The VIX
jumped 0.4 point, or 2.3%, to end the day at 14.83. The fear
barometer did manage to reach its highest intraday level since
April 22, peaking at 15.65.
A Trader's Take
"Financials held up rather well today," Detrick said. "Other
than that, though, it was a weak day. Interest-rate-sensitive
stocks were hit hard again -- utilities, housing, and REITs all
were crushed. This has been happening since last week, when the Fed
hinted that they could slow their asset purchasing. In other words,
interest rates may finally start to go higher, and traders are
dumping anything that could be hurt from this."
3 Things to Know About Today's Market
- Mortgage applications
dropped by 9%
during the last week, per the Mortgage Bankers Association. Some
attributed this slip to a rise in lending rates -- a 30-year
fixed mortgage is, on average, set at 3.9%, or the highest it has
been in a year.
- The Federal Deposit Insurance Corp. (FDIC) noted that U.S.
collectively booked net income of $40.3
in the first quarter of 2013, setting a record high. The figure
improved nearly 16% from the first quarter of 2012.
- The Nasdaq Exchange -- via its parent, NASDAQ OMX Group, Inc.
(NDAQ) -- will
pay a $10 million fine
to atone for the botched Facebook Inc (
) IPO. The fine's amount was disclosed today by the Securities
and Exchange Commission (SEC).
(The New York Times)
5 Stocks We Were Watching Today
Bearish betting accelerated
on Intel Corporation (
), defying recent trends.
- Short-term option bulls
on AT&T Inc. (T), following the debut of Ma Bell's Mobile
Workplace cloud-based software.
- Priceline.com (PCLN) saw its
price target lifted to $950
- One aggressive Apple Inc. (
) bull employed a
synthetic long strategy
to bet on short-term strength.
- Ford Motor (F) hit a
fresh two-year peak
, and was targeted by intermediate-term call buyers.
For a look at today's options movers and commodities
activity, head to page 2.
Crude oil recoiled to its lowest level in four weeks today, as a
reduced global economic growth forecast from the OECD sparked
concerns over energy demand. July-dated oil surrendered $1.88, or
2%, to close at $93.13 per barrel.
Gold futures, on the other hand, muscled higher against a
backdrop of falling equities and a weakened dollar. Gold for August
delivery was up $12.10 today, or 0.9%, to settle at $1,391.80 an