S&P 500 Hugs the Breakeven Mark as Investors Digest Earnings


"Despite the worse-than-expected durable goods orders report this morning, the market simply refused to sell off," quipped Schaeffer's Senior Equity Analyst Joe Bell. "In addition, energy and materials stocks had a stellar day, as commodities are enjoying a strong rebound." The Dow Jones Industrial Average (DJI) , meanwhile, traded in a relatively tight range and stayed just south of breakeven for most of the day, ultimately closing off 0.3%.

Continue reading for more on today's market, including :

  • Markets hold steady, durable goods plunge, and Facebook Inc ( FB ) traders bet on a short-term pullback.

The Dow Jones Industrial Average (DJI) lagged its index peers today, as a pair of its components suffered post-earnings setbacks. Late-day selling put the Dow near its nadir of the day at the closing bell, when it settled at 14,676.30, down 43.2 points, or 0.3%. Half of the Dow's 30 members moved higher on the day, with Microsoft ( MSFT ) again in the top slot, up 3.8%. Procter & Gamble ( PG ) and AT&T ( T ) brought up the rear after poorly received earnings results; PG shed 5.9% on the day, while T lost 5%.

The S&P 500 Index (SPX) , though, was hardly changed, up 1 cent at 1,578.79. It was a similarly flat day for the Nasdaq Composite (COMP) , which rose 32 cents to close at 3,269.65.

The CBOE Market Volatility Index (VIX) managed to tick higher amid the inertia, adding 13 cents, or nearly 1%, to 13.61. It was the first winning day for the VIX since last Thursday.



A Trader's Take :

"We are definitely in the heart of earnings season, and receiving mixed reactions in several stocks across several sectors," noted Bell. "Technology seemed to be a big laggard today, as Apple Inc. (AAPL) faced a negative reaction to its earnings news."

3 Things to Know About Today's Market :

  • Durable goods orders dropped 5.7% last month , according to the Commerce Department. This was the reading's sharpest pullback in seven months, and it disappointed economists, who were projecting a 2.8% decline. (Reuters)
  • Markets rose in Europe for the fourth session in a row, as investors remained hopeful that the European Central Bank will lower interest rates. (Bloomberg)
  • Apple Inc. (AAPL) traded in a wide range today, following an earnings report that narrowly topped estimates, news of a stock buyback and dividend hike, and several price-target cuts along Wall Street. By the close, the shares were up 0.4%. (CNBC/Fortune)

5 Stocks We Were Watching Today :

  1. Our Weekly Contrarian : Is J.C. Penney Company (JCP) staging a comeback?
  2. Zynga Inc (ZNGA) scored a price-target hike just ahead of its earnings report.
  3. Bearish speculators made short-term bets against Facebook Inc ( FB ).
  4. Clean Energy Fuels (CLNE) saw a spike in call volume as the shares rallied on declining natural gas prices.
  5. Options volume was all over the map in Cisco Systems (CSCO) today.


For a look at today's options movers and commodities activity, head to page 2.



Commodities :

Oil futures rallied on news that crude supplies grew by less than expected, while gasoline stockpiles dropped. June-dated crude added $2.25, or 2.5%, ending the session near a two-week high at $91.43 per barrel.

Gold was also higher, as a drop in durable-goods orders sent bargain-hungry investors looking for a safe haven. June gold futures added $14.90, or 1.1%, to close at $1,423.70 an ounce, the precious metal's highest close since April 12.


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 critical, timely and insightful report. If you enjoyed today's edition of Market Recap, sign up here for free daily delivery straight to your inbox.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

All Rights Reserved. Unauthorized reproduction of any SIR publication is strictly prohibited.

This article appears in: Investing , Options

Referenced Stocks: FB , HLF , MSFT , PG , T

Schaeffer's Investment Research

Schaeffer's Investment Research
  • See all for Schaeffer's Investment Research
  • View Print Version

More from Schaeffer's Investment Research:

Related Videos

Boat Buying Checklist
Boat Buying Checklist               
Boat Registration Basics
Boat Registration Basics            



Most Active by Volume

  • $16.40 ▼ 3.19%
  • $16.5049 ▼ 7.48%
  • $6.30 ▼ 11.64%
  • $17.71 ▼ 3.33%
  • $77.83 ▼ 2.99%
  • $7.79 ▼ 5%
  • $29.335 ▼ 2.35%
  • $124.16 ▼ 1.46%
As of 7/7/2015, 11:41 AM

Find a Credit Card

Select a credit card product by:
Select an offer:
Data Provided by BankRate.com