Hopes Might Be High, But Wall Street Is Wary Before Fed, ECB Meetings

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"After a very strong rally late last week, the market seemed to take a bit of a breather today," said Schaeffer's Senior Equities Analyst Joe Bell. "Most market participants are now looking forward to the Federal Reserve and European Central Bank announcements later this week." Although the Dow Jones Industrial Average (DJI) shot higher right out of the gate, the index couldn't keep the momentum going and reversed its three-day rise of more than 3%.

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

And now, a look at the numbers...

CLOSING SUMMARY - INDICES

CLOSING SUMMARY - NYSE AND NASDAQ

After tagging its session peak of 13,128.64 this morning, the Dow Jones Industrial Average (DJI - 13,073.01) pulled back into the red. Though the blue-chip barometer poked its head above breakeven several times after midday, the Dow finally notched a slight 2.7-point, or 0.02%, loss. Sixteen of the 30 components finished lower, with JPMorgan Chase & Co. ( JPM ) leading the laggards with a 2% decline. The Coca-Cola Company ( KO ) paced the 13 winning issues with a 1.4% jump, while Alcoa Inc. ( AA ) remained unchanged.

The S&P 500 Index (SPX - 1,385.30) and the Nasdaq Composite (COMP - 2,945.84) endured a similar fate as the Dow, slipping into negative territory after an early run in the green. While the SPX suffered a fractional deficit, the COMP suffered the worst performance of its fellow benchmarks, tumbling 12.3 points, or 0.4%.

The CBOE Market Volatility Index (VIX - 18.03) rose nearly 8% today, finding a perch just under its intraday high of 18.08. The VIX ran into resistance at its 32-day moving average.

Today's highlight : "AT&T Inc. ( T ) bought another $300 million shares, and The Shaw Group Inc. ( SHAW ) was purchased at a more than 50% premium from Friday's closing price," noted Bell. "This is a great sign that companies still think there is big-time value out there."

Turning to today's major market stories...

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

Crude-oil futures dipped slightly lower today, receiving their first loss in five days. Many speculators appear to be staying on the sidelines ahead of meetings of the Federal Open Market Committee and the European Central Bank. Also on the domestic front, the nonfarm payrolls report and unemployment figures for July will be released on Friday. By the close today, September-dated crude inched lower by 35 cents, or 0.4%, to end at $89.78 a barrel.

Make it four wins in a row for gold futures, as hopes mount for new economic stimulus from the U.S. and European Central Bank. Gold for August delivery gained $0.70, or 0.1%, to settle at $1,618.70 an ounce.

Levels to watch in trading...

  • Dow Jones Industrial Average (DJI - 13,073.01) - support at 11,500; resistance at 14,000
  • S&P 500 Index (SPX - 1,385.30) - support at 1,100; resistance at 1,500
  • Nasdaq Composite (COMP - 2,945.84) - support at 2,400; resistance at 3,400

OUTPERFORMING AND UNDERPERFORMING SECTORS

STOCKS - MOVERS

STOCKS - EARNINGS

STOCKS - NOTABLE CALL ACTIVITY

STOCKS - NOTABLE PUT ACTIVITY

Click the links for coverage on today's notable annual highs and notable annual lows .

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.

All Rights Reserved. Unauthorized reproduction of any SIR publication is strictly prohibited.


This article appears in: Investing , Options

Referenced Stocks: AA , JPM , KO , SHAW , T

Schaeffer's Investment Research

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