"Growth stocks really took a beating today, with consumer
discretionary and home building stocks getting hit pretty hard,"
said Schaeffer's Senior Equity Analyst Joe Bell as the
Dow Jones Industrial Average (DJI)
fell significantly on disappointing hiring figures. "Economic data
was mixed this morning, as employment in the nonfarm private
business sector rose by 158,000 in March. Although this was below
estimates, ADP also revised February's number higher."
Continue reading for more on today's market, including
- Schaeffer's Senior Option Strategist Tony Venosa, CMT, on how
Research In Motion (
) may be poised for
an "upside breakout"
and is a good buy "at current levels."
- Schaeffer's Senior Trading Analyst Bryan Sapp on how Facebook
) could be nearing its
- Options investors -- both bulls and bears --
sought a move
from Apple (
) in the coming days.
- The markets slump after a record-setting day, hiring slows
down, and bearish options traders targeted Google (
) for an even bigger pullback.
Dow Jones Industrial Average (DJI)
fell back on disappointing employment news, erasing all of
Tuesday's gains (and more). The Dow dropped nearly 112 points, or
0.8%, to close at 14,550.35, ending just north of its 10-day moving
average. The 30-member Dow saw just three companies increase, led
by drug maker Merck (
), which gained 1.0%. Bank of America (BAC) fell 2.8% to lead the
S&P 500 Index (SPX)
also dropped, closing at 1,553.69, shedding nearly 17 points, or
Nasdaq Composite (COMP)
was down as well, finishing at 3,218.60, down 36 points, or 1.1%.
Unlike the Dow, both the SPX and the COMP breached their respective
CBOE Market Volatility Index (VIX)
gained 1.4 points, or 11.2%, to close at 14.21.
A Trader's Take
"There wasn't a whole lot to cheer about on the day," Bell said.
"Utility stocks took a leadership role, but all sectors were deep
in the red by the closing bell. There was also late news in the day
regarding North Korean threats to the U.S., which didn't boost the
spirits of market participants."
3 Things to Know About Today's Market
- Payroll processing firm ADP reported that the private sector
created 158,000 jobs
in March, far south of economists' predictions.
- In another bit of disappointing economic news, the Mortgage
Bankers Association reported that applications for new mortgages
4% last week, with refinancing requests dropping the most.
- The International Monetary Fund (IMF) and European Union
set the conditions
for its bailout of Cyprus, with the IMF pledging 1 billion euros,
or about 10% of the total $13 billion package.
(The New York Times)
5 Stocks We Were Watching Today
- Google (
) slumped a little on the charts, and short-term bears
targeting a continued downturn.
- Short-term bulls
on online game publisher Zynga (ZNGA), looking for the news of
online gambling approval overseas to provide a bump this
- Call buyers made
a rare appearance
in Bank of America (BAC), looking to capitalize on the bank's
strong performance on the charts.
- Tesla Motors (TSLA) saw an uptick in call volume, but traders
on where they thought shares in the electric car maker were
- One trader executed
a massive covered call
on Sony Corporation (SNE), which has been on an upward trend
lately amid several news developments.
For a look at today's options movers and commodities
activity, head to page 2.
The discouraging jobs data and an increase in domestic
stockpiles pushed oil futures down Wednesday. May crude futures
closed at $94.45 a barrel, falling $2.74, or 2.8%, on the day.
Gold also stumbled, with futures hitting a nine-month low as
other commodities and precious metals also dropped. June-dated gold
finished at $1,553.50 per ounce, off $22.40, or 1.4%.
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.