"The volatility that has accompanied February continued today,"
said Schaeffer's Senior Technical Strategist Ryan Detrick, CMT,
about today's market that saw the
Dow Jones Industrial Average (DJA)
close down about 0.3%. "Although there wasn't any major headline
news, the weakness in Europe is starting to creep into our markets
Continue reading for more on today's market, including
- "Blizzard Baby" Detrick lists
on the markets from winter storm Nemo, which is bearing down on
the Northeast this weekend.
- Where Schaeffer's Senior Trading Analyst Bryan Sapp sees the
"for the time being."
- How bears
came out of hibernation
to target Verizon Communications Inc. (
- The markets swing south, more news on the jobless front, and
major bullish action on low-cost carrier Southwest Airlines (
Perhaps starting to take cover in advance of the aforementioned
storm (and getting off to a slow start due to concerning news out
of Europe), the
Dow Jones Industrial Average (DJI)
fell back, finishing at 13,944.05 after falling more than 42
points, or 0.3%. Only six companies advanced on the 30-member Dow,
led by American Express Company (
), which jumped 2.6%. Procter & Gamble (
) was unchanged. Caterpillar Inc. (
) had the biggest fall out of the 23 decliners, dropping 1.6%.
S&P 500 Index (SPX)
also fell, dropping nearly 3 points, or 0.2%, to close at 1,509.39.
The index did close above the 1,500 mark for the third straight day
and the eighth in 10 sessions. The
Nasdaq Composite (COMP)
shed 3 points, or 0.1%, to finish at 3,165.13.
CBOE Volatility Index (VIX)
edged higher on the uncertainty, closing at 13.50, up less than
less than 0.1 point, or 0.7%.
A Trader's Take
"Things were ugly early, but you have to be impressed with the
market's continued resiliency here," Detrick continued.
"Nonetheless, with a huge blizzard coming this weekend, expect
Friday to be a rather light volume day."
3 Things to Know About Today's Market
- Initial jobless claims
fell slightly to 366,000
for this past week, but the fall wasn't quite what was predicted
- In more jobless news, the president of the Federal Reserve
Bank of Chicago Charles Evans predicted that the unemployment
won't drop to 6.5%
for at least another two years -- key since that's the Fed's
target with regard to its current interest-rate policies.
- Many are not happy with the decision by Apple Inc. (AAPL) to
eliminate preferred shares - and hedge fund giant David Einhorn
one step further
by suing the tech giant.
(The New York Times)
5 Stocks We Were Watching Today
- Southwest Airlines Co. (
and immediately caught the attention of bullish option
- One investor bought
a call spread
on Coinstar, Inc. (CSTR) ahead of tonight's earnings.
- A recent technical upturn
attracted longer-term bulls
to QUALCOMM, Inc. (QCOM).
- Bond insurer MBIA Inc. (MBI) saw its stock price cross a
significant threshold, and
the option bulls noticed
- Short-term bears
Transocean LTD (RIG) despite a long-term technical climb.
For a look at today's options movers and commodities
activity, head to page 2.
Crude futures came under fire on Thursday, pressured by weakness
in equities and a resurgent U.S. dollar. Oil for March delivery
shed 79 cents, or 0.8%, to end at $95.83 per barrel. Gold futures
also retreated, with the dollar-denominated commodity tracking
losses in the euro. April-dated gold gave up $7.50, or 0.5%, to
close at $1,671.30 per ounce.
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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