"As poor as today's economic data was, the good news was we saw
some solid earnings," said Schaeffer's Senior Technical Strategist
Ryan Detrick, CMT, of a day where the
Dow Jones Industrial Average (DJI)
bounced around breakeven for much of the day, notched (another) new
all-time high, and settled 42 points lower. "Earnings season is
pretty much officially over after tomorrow, though, so it was nice
to see some strength near the end of it."
Continue reading for more on today's market, including
- A surprise pop in jobless claims, a new boss at the IRS, and
a burst of strength in the shipping sector.
Dow Jones Industrial Average (DJI)
, settled on a loss of 42.5 points, or 0.3%, at 15,233.22, the day
wasn't a total loss. In fact, the blue-chip index hit another new
all-time high of 15,302.49 in late-morning trading. Just seven Dow
components closed in positive territory, powered by Cisco Systems (
), which rallied 12.6% after its earnings report. Walt Disney (
) and Wal-Mart Stores (
), meanwhile, were the day's laggards, shedding 1.8% and 1.7%,
respectively. Alcoa (
) closed unchanged on the day.
S&P 500 Index (SPX)
declined as well, losing 8.3 points, or 0.5%, to close atop
round-number support at the 1,650.47 mark. After reaching a new
12-year peak of 3,485.95, the
Nasdaq Composite (COMP)
succumbed to late-session selling pressure, dropping 6.4 points, or
0.2%, to close at 3,465.24.
CBOE Market Volatility Index (VIX)
muscled back above the 13 level (and its 10-day trendline). At the
close, the VIX was up 0.3 point, or 2%, at 13.07, its first close
north of 13 since May 9.
A Trader's Take
"The economic data was rather weak, "summarized Detrick. "From
jobs data, to housing starts, to the Philly Fed's manufacturing
data, all disappointed. Considering the recent run higher and the
chance traders were given to bail on 'bad' news today, though, the
price action was (for the most part) encouraging. Markets held
tough until a late-day dip."
3 Things to Know About Today's Market
- The Consumer Price Index (CPI) posted
its biggest drop
since December 2008, declining 0.4% in April to fall short of
economists' estimates for a 0.2% pullback. Elsewhere,
weekly jobless claims
rose by 32,000 -- the largest jump since November -- to a
seasonally adjusted 360,000. Economists had projected a narrower
increase in the figure.
(Chicago Tribune, FOX Business)
- Acting on his pledge to appoint fresh leadership to the
Internal Revenue Service, President Barack Obama
tapped senior White House budget officer
Daniel Werfel to serve as acting commissioner of the agency.
Werfel, who has experience under the George W. Bush and Obama
administrations, replaces Steven Miller, who was summarily
released from the position yesterday.
(The Washington Post)
- Cisco Systems (
) gained more than 12% and notched a new 52-week high following
positive earnings surprise
. In the fiscal third quarter, Cisco earned 51 cents per share
(excluding items), topping estimates by two pennies. Revenue was
roughly in line with analysts' expectations.
5 Stocks We Were Watching Today
- Bulls of all kinds
have been betting big
on American International Group (AIG).
- Nokia Corporation (NOK) put sellers wagered on
: Procter & Gamble (PG) could have further upside ahead.
- Shipping concerns Eagle Bulk Shipping (EGLE) and DryShips
Inc. (DRYS) saw a
flood of speculative activity
as both rallied sharply.
- Amazon.com (AMZN) scored a
new "buy" rating
at Lazard this morning.
For a look at today's options movers and commodities
activity, head to page 2.
Crude futures elbowed their way to a modest gain on Thursday,
supported by weakness in the U.S. dollar. June-dated oil added 86
cents, or 0.9%, to end the day at $95.16 per barrel.
Tame inflation data kept gold futures under pressure, sending
the precious metal to its sixth straight daily loss. Gold for June
delivery lost $9.30, or 0.7%, to finish at $1,386.90 per ounce --
its lowest daily close since April 17.