"I'm just happy that weakness in Europe didn't torpedo our
markets," said Schaeffer's Senior Technical Strategist, Ryan
Detrick, CMT, after the
Dow Jones Industrial Average (DJI)
fell on the day but closed only slightly lower after an afternoon
rally. "Last year, there's a good chance we have a big down day on
news and concerns like we saw out of Italy. We are finally seeing a
divergence from those concerns and the realization is the U.S.
economy is on much better footing than most of Europe."
Continue reading for more on today's market, including
- Schaeffer's Senior Options Strategist Tony Venosa, CMT,
has 10 reasons why
Western Digital Corporation (
) looks like a buy.
- Our Senior Trading Analyst Bryan Sapp dissects the
in the market.
- Our Weekly Contrarian: Are
ahead for cruise ship operator Carnival Corp (
- The markets fall back, more turmoil in Europe, and how bulls
looked for Amazon.com's (
) win streak to continue.
The day after a 112-point gain, the
Dow Jones Industrial Average (DJI)
got dragged down again by European concerns. The Dow lost 33
points, or 0.2%, to close at 14,526.16, although it recovered
nearly 87 points from its intraday nadir. The 30-member Dow saw 10
of its members advance, led by UnitedHealth Group (
), which climbed 1.7%. JPMorgan Chase (
) led the 20 decliners, falling 1.8%.
S&P 500 Index (SPX)
also dropped back, but came within a point of another multi-year
high in late-session trading. The SPX fell nearly 1 point, or less
than 0.1%, to finish at 1,562.85. The
Nasdaq Composite (COMP)
pulled out a win on the day, ending at 3,256.52, up 4 points, or
0.1%, after threatening to set yet another 12-year high.
CBOE Market Volatility Index (VIX)
gained 0.4 point, or 3%, to close at 13.15.
A Trader's Take
"The headlines will say weakness out of Italy pushed us lower,
yet I find that more of an excuse," Detrick said. "The reality is
that the S&P 500 Index (SPX) once again is flirting with new
highs and just can't seem to break out. Just like the Dow when it
danced around 14,000 for what seemed like forever, we seem to be
seeing similar action with the SPX now."
3 Things to Know About Today's Market
- After weeks of worry over Cyprus, another European country
was the focus of the fiscal community today, with
Italian bond prices
dropped ahead of a planned auction, leading the euro to close at
a four-month low.
(San Francisco Chronicle)
- Blackstone Group, one of the interested parties bidding for
computer maker Dell (DELL), is
not opposed to retaining
company founder and current CEO Michael Dell as the chief
executive, sources said.
(The Wall Street Journal)
- Federal regulators today said they were
directing mortgage officers
at Fannie Mae and Freddie Mac to offer a simpler mortgage
modification to struggling homeowners than is available now.
5 Stocks We Were Watching Today
- Option traders bet on a
slow and steady climb
by computer chip maker Intel Corporation (INTC).
- A new price target hike for Google (GOOG) didn't stop bearish
on potential losses over the next week.
- Amazon.com (
) climbed on the charts, and option bulls
, looking for a short-term gain.
- The rejection of a new cancer drug in England
bearish trading against drug maker Pfizer (PFE).
- Visa (V) touched a new record high and option bulls
the credit card company.
For a look at today's options movers and commodities
activity, head to page 2.
Crude futures pushed past increased domestic inventories to
extend their winning streak to four straight sessions. Oil for May
delivery rose 24 cents, or 0.3%, to close at a new five-week high
of $96.58 per barrel.
The ongoing European concerns renewed gold's safe-haven appeal,
leading June-dated gold up $9.90, or 0.6%, to a finish at $1,607.20
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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