) had a much worse-than-expected earnings report and issued
cautious growth guidance," said Schaeffer's Senior Equity Analyst
Joe Bell as the overall market struggled and the
Dow Jones Industrial Average (DJI)
fell on fears from Europe. "While most major sectors finished in
the red, this poor earnings news led to notable underperformance
from the tech sector throughout the day."
Continue reading for more on today's market, including
- Schaeffer's Senior Options Strategist Tony Venosa, CMT,
Potash Corp./Saskatchewan (NYSE:POT ) is a strong candidate for a
- Our Senior Trading Analyst Bryan Sapp on the ugly response by
the markets to strong economic data today; plus, a deep dive into
downturn by Intel Corporation (
- And bearish option traders
the recent drop by International Business Machines (
) to continue over the short term.
- The markets get spooked by European concerns, jobless claims
rise -- albeit slowly, and how short-term option traders swarmed
Cisco Systems (
Dow Jones Industrial Average (DJI)
fell off after setting a new record high yesterday, with investors
scared off by gloomy forecasts out of Europe. The Dow dropped 90
points, or 0.6%, to finish at 14,421.49. The 30-member Dow saw only
five of its members advance, led by The Coca-Cola Company (
), which climbed 0.5% and led advancers for the second-straight
day. The 25 decliners were paced by Cisco Systems (
), which fell 3.8%.
S&P 500 Index (SPX)
also fell, dropping nearly 13 points, or 0.8%, to close at
Nasdaq Composite (COMP)
finished at 3,222.60, down nearly 32 points, or 1.0%.
CBOE Market Volatility Index (VIX)
gained 1.3 points, or 10%, to close at 13.97.
A Trader's Take
"Beneath the sea of red, we actually had some pretty encouraging
jobs data released this morning," Bell noted. "Initial claims of
336,000 were better than expected, and it marked the fourth week
that this figure came in below the 350,000 level."
3 Things to Know About Today's Market
- New jobless claims
this week to 336,000 according to the U.S. Labor Department, but
the four-week moving average remained at its lowest levels since
before the Great Recession.
- Widely viewed as a key economic indicator overseas, a German
purchasing managers' index
, sparking a selloff on European markets.
- And Sears Holdings Corp. (SHLD)
its CEO Edward Lampert to a contract with an annual salary of $1.
But Lampert doesn't really come that cheaply; the deal gives him
the ability to make up to $2 million in cash/stock as a bonus and
up to $4.5 million worth of SHLD shares each year.
(CBS Money Watch)
5 Stocks We Were Watching Today
option bets were the plays of the day for Cisco Systems (
- Citigroup (C)
short-term bears as it fell on the charts today.
- Lululemon Athletica (LULU)
on its side despite its recent supply troubles and a recall
- Short-term bears
NIKE (NKE), looking for a slide after tonight's earnings
- Bullish traders
on a positive earnings result from Oracle Corporation (
), but might be rethinking that strategy after last night's
For a look at today's options movers and commodities
activity, head to page 2.
Demand expectations for oil dropped Thursday due to uncertainty
over Cyprus and the previously mentioned European manufacturing
data. That pushed oil futures lower -- crude for May delivery
dropped $1.05, or 1.1%, to end at $92.45 per barrel.
But that same Cyprus situation sparked gold futures higher, with
investors looking for a safe haven. April-dated gold jumped $6.30,
or 0.4%, to finish at $1,613.80 per ounce -- a three-week closing
high for the precious metal.
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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