"There was some strong overseas economic data out of China and
Great Britain, but the major U.S. indices failed to respond today,"
noted Schaeffer's Senior Equity Analyst Joe Bell, CMT. "In
addition, a Fed official came out and said the market could expect
a slowdown in asset purchases later this year, if the economy
continues to improve." As a result, the
Dow Jones Industrial Average (DJI)
ended up finishing the session in the red.
Continue reading for more on today's market, including
- Schaeffer's Senior Trading Analyst Bryan Sapp says he's
"looking for some consolidation this week," and is eyeing 1,720
as the next
upside target for the S&P 500 Index (SPX)
- As Tesla Motors (
) prepares to
report quarterly earnings
on Wednesday, speculators from both sides of the trading fence
scooped up the stock's near-term options.
In case you missed it:
The latest edition of
The Week Ahead
highlights upcoming events for Facebook (
), Red Hat (
), and AOL (
The ISM's non-manufacturing index hit a multi-month high, a Fed
hawk sparked tapering concerns, and Cisco Systems (
) reached a new technical milestone.
Dow Jones Industrial Average (DJI - 15,612.13)
was docked in negative territory for the entire session -- hitting
an intraday low of 15,584.83 during the morning hours of trading --
but managed to recover some of its losses to close 46.2 points, or
0.3%, lower. The blue-chip barometer's 10 advancers were led by
UnitedHealth Group's (UNH) 1.5% gain, while United Technologies
(UTX) paced the 20 decliners with a loss of 1.1%.
S&P 500 Index (SPX - 1,707.14)
also took a hit today, and finished the session with a drop of 2.5
points, or 0.2%. Meanwhile, the
Nasdaq Composite (COMP - 3,692.95)
"outperformed" its peers by once again tagging a 12-year intraday
high of 3,694.19, and advancing 3.4 points, or 0.1%.
CBOE Market Volatility Index (VIX - 11.84)
shot up to an intraday high of 12.42 within the first half-hour of
the session, but lost its momentum to finish 0.1 point, or 1.2%,
A Trader's Take
"The markets were greeted by a very strong ISM non-manufacturing
index reading, but most of the major sectors were unable to muster
much of a gain," Bell continued. "We did see technology, consumer
staples, and telecom services lead the way, though."
3 Things to Know About Today's Market
- The Institute for Supply Management (ISM) said its
arrived at 56.0 in July -- up from the previous month's reading
of 52.2, and exceeding the consensus view. The latest figure also
marked the index's highest level since February.
(The Washington Post)
- Federal Reserve Bank of Dallas President Richard Fisher threw
some cold water on stocks today, noting that the latest round of
employment news could mean a
tapering to QE3 efforts
is on the way. Fisher is not currently a voting member of the
Federal Open Market Committee, but has historically been a critic
of stimulus measures.
- Optimism among the investing public is waning, according to
TD Ameritrade (AMTD). The brokerage firm revealed that its
Investor Movement Index
fell to 4.87 last month from June's reading of 5.15, reflecting a
decrease in bullish sentiment among retail investors.
5 Stocks We Were Watching Today
American International Group (AIG)
received a price-target hike at KBW, on the heels of last week's
well-received quarterly earnings report.
- Longer-term bulls flocked to
Canadian Solar (CSIQ)
, as the stock touched a new two-year peak.
- Rumors of leaked Z15 device images caused
to spike higher, attracting weekly call players.
Micron Technology (MU)
was targeted by call sellers and put buyers, despite today's
positive price action.
- A pair of upbeat brokerage notes pushed
Cisco Systems (
to a fresh multi-year high.
For a look at today's options movers and commodities
activity, head to page 2.
Crude oil futures finished the session in the red, following
news that Libya will resume some of its oil production, as well as
today's stronger-than-anticipated ISM data. By the time the closing
bell rang, September-dated crude was off 38 cents, or 0.4%, to end
at $106.56 per barrel.
Meanwhile, gold futures extended Friday's decline, after Dallas
Fed President Richard Fisher opined that the Fed could be closer to
tapering its bond-buying program. The December-dated contract fell
$8.10, or 0.6%, to finish at $1,302.40 an ounce.