"As reports surfaced that the Italian election result was still
uncertain, many markets around the world reacted with selling,"
said Schaeffer's Senior Equity Analyst Joe Bell on a day that saw
Dow Jones Industrial Average
jump fast out of the gate but limp into a loss at the finish on a
wild day with a nearly 300-point swing. "U.S. equities followed
suit, as the Dow Jones continues to battle with the round-number
Continue reading for more on today's market, including
The eight reasons
our Senior Options Strategist Tony Venosa, CMT, gives for
considering Symantec Corporation (
) for a long-term long trade.
- Our Senior Trading Analyst Bryan Sapp on how today's Italian
moved the markets lower
; plus why Suncor Energy (
) could be poised for more downward movement.
- A look at 25 stocks
on the mend
, including Netflix (
), Deere & Company (
) and Amazon.com (
- The markets move back into the red to start the week, more
gridlock and posturing in Washington over the so-called
"sequester," and how the bulls looked to cash in on another rise
from online gaming company Zynga (ZNGA).
Dow Jones Industrial Average
started off strong, crossing over the 14,000 barrier and hitting
another new multi-year high of 14,081.58 early in the morning, but
then got punched down by uncertainty over the state of the Italian
economy as that country goes through elections. The 297-plus point
swing the index experienced was the largest since the first trading
day of the year. The Dow finished down 216 points, or 1.6%, to
close at 13.784.17. Only three of the 30 companies on the Dow
advanced, led by McDonald's (MCD), which climbed 0.9%. The 27
decliners were led by Bank of America (BAC), which fell 3.6%.
S&P 500 Index (SPX)
also fell, shedding nearly 28 points, or 1.8%, to close at 1,487.85
-- breaking a string of 13 consecutive sessions the SPX had
finished above the round-number barrier of 1,500. The
Nasdaq Composite (COMP)
fell nearly 46 points, or 1.4%, to finish at 3,116.25.
All the uncertainty was good for the
CBOE Volatility Index (VIX)
, which soared 4.9 points, or 33.9%, to close at 18.99. It was the
highest close for the VIX so far this year.
A Trader's Take
" There wasn't a whole lot to cheer about today, as small- and
mid-cap stocks led the way down," Bell said. "As earnings season
winds down, we have some housing data and February Consumer
Confidence set to be released tomorrow (Tuesday). We are also one
day closer to the March 1 spending cut deadline, which should
become a bigger headline with each passing day."
3 Things to Know About Today's Market
- The stalemate between the White House and Congress over the
automatic federal spending cuts known as the "sequester" set to
go into effect Friday continued, with President Obama trying to
get the nation's governors
onto his side
- The U.S. government has begun
its remaining stake of General Motors (GM), selling $156.4
million worth of the Detroit automaker's stock in January as part
of its efforts to recoup the $20 billion left outstanding from
its $49.5 billion bailout of GM in 2008.
- Barnes & Noble (BKS) saw its stock skyrocket after the
company's chairman announced he
wanted to bid
for the retail side of the bookstore chain.
(The New York Times)
5 Stocks We Were Watching Today
- Zynga (ZNGA) had a strong open to today's session, which
bulls looking for even more improvement from the online gaming
firm over the next three weeks.
- SanDisk Corporation (SNDK) saw
of short-term bullish call buyers looking to cash in on the
stock's recent run.
- VMware (VMW) was
of front-month call traders who were perhaps seeking to protect
their current positions.
- Bearish traders
swooped in on
Eli Lilly (LLY) despite the stock's upward technical trends.
- Short-term bearish investors also looked for Molycorp Inc
following its earnings later this week.
For a look at today's options movers and commodities
activity, head to page 2.
The stronger U.S. dollar continues to wreak havoc on commodity
markets, with oil futures falling again on Monday. Crude for April
delivery closed on a decline of just 2 cents, or 0.02%, at $93.11
But the recent declines in gold attracted bargain hunters -- the
precious metal's April futures gained $13.80, or 0.9%, to finish at
$1,586.60 per ounce.
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
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