"We are now getting to the heart of earnings season, and
technology stocks once again lagged the market as various earnings
failed to impress market participants," observed Schaeffer's Senior
Equity Analyst Joe Bell. Although the tech sector paced the
Dow Jones Industrial Average (DJI)
moved lower again, giving back 81 points and closing south of its
20-day moving average for the first time in nearly two months.
Continue reading for more on today's market, including
- The Dow takes a dip, economic data fails to impress, and
) traders get ready for earnings.
Dow Jones Industrial Average (DJI)
started the day in positive territory, but it certainly didn't stay
there for long. By the closing bell, the blue-chip index had
dropped 81 points, or almost 0.6%, to 14,537.14, closing south of
its 20-day moving average for the first time since Feb. 26. Seven
of the 30 Dow components were higher on the day, with Verizon
) up 2.8% to lead the way, following its quarterly earnings report.
At the back of the pack was another earnings name, UnitedHealth
), which gave back 3.8%.
S&P 500 Index (SPX)
took out former support at the 1,550 level, shedding 10.4 points,
or 0.7%, to settle at 1,541.61, its lowest closing level since
early March. Underperforming its index peers was the
Nasdaq Composite (COMP),
which lost 38 points, or 1.2%, to end the session at 3,166.36.
CBOE Market Volatility Index (VIX)
, tacking on 1.1 point, or 6.4%, to 17.56.
A Trader's Take
"Most sectors finished in the red today," Bell said, "as
discretionary names struggled and homebuilding stocks once again
failed to bounce. Defensive sectors, however, such as telecom and
utility stocks, were able to buck this trend. Right now, those are
the safe havens as the slide continues."
3 Things to Know About Today's Market
- The weekly report on unemployment filings came in
worse than expected
, as initial jobless claims rose by 4,000 to a seasonally
adjusted 352,000. Elsewhere, the Philadelphia Fed's manufacturing
index dropped to 1.3 in April from 2.0 last month.
- Jeffrey Lacker, president of Richmond's Federal Reserve Bank,
voiced his disagreement
regarding quantitative easing, claiming he would stop all
bond-buying efforts right now if he were a "dictator," and
questioning the program's overall effectiveness.
- American Express (AXP) reported first-quarter earnings of
$1.15 per share,
three cents above
analysts' expectations. Despite rising 3.9% to $7.88 billion,
however, revenue fell short of the mark.
(The Wall Street Journal)
5 Stocks We Were Watching Today
- Ford Motor Company (F) put sellers expect the stock to
hold its perch
above the $11.50 level.
- Following yesterday's earnings report, Bank of America (BAC)
from UBS this morning.
- As the stock stagnates, bullish investors are
from Sirius XM Radio Inc (SIRI).
- Put speculators targeted Facebook Inc (FB) today, but one
large block was likely
sold to open
- With earnings scheduled for next week, Zynga Inc (
caught the attention
of call buyers and put sellers.
For a look at today's options movers and commodities
activity, head to page 2.
Oil bounced from a four-month low today, thanks to an ailing
greenback. The May contract gained 1.2%, or $1.05, to close at
$87.73 per barrel.
Gold edged higher today as well, with June-dated futures adding
$9.80, or 0.7%, to settle at $1,392.50 per ounce. Disappointing
domestic economic data -- coupled with investors looking for a
bargain -- helped buoy the commodity. While entirely relative, this
was the precious metal's highest close so far this week.
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.
All Rights Reserved. Unauthorized reproduction of any SIR publication is strictly prohibited.