SPX 1,400 Stays Put; Investor Sentiment on the Rise

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At its session low, the Dow Jones Industrial Average (DJI) was off some 87 points. "But in the end, it was nice to see that the buyers stepped up and the market finished well off its lows," reflected Senior Technical Strategist Ryan Detrick. "Volume was light, and I'd expect more of that tomorrow as everyone gets ready for Friday's jobs report."

Click through to see what else was on our radar today:

  • See why Senior Equity Analyst Joe Bell is excited about regional banks and homebuilders, but turned off by big banks .
  • "Sell in May and go away"? Quantitative Analyst Chris Prybal researched an old market adage for the Dow.
  • Optimism was on the rise last week, according to the latest investor sentiment survey.
  • Plus, is it time to short the iShares Russell 2000 Index Fund ( IWM ) ?
And now, a look at the numbers...

CLOSING SUMMARY - INDICES

CLOSING SUMMARY - NYSE AND NASDAQ


The Dow Jones Industrial Average (DJI - 13,268.73) fell as low as the 13,192.21 mark, but was able to pare some of its losses and end with a deficit of just 10.8 points, or 0.08%. Just over half of Dow's 30 components finished lower, as Alcoa ( AA ) led the 16 laggards with a 2.4% slide. On the other hand, Intel ( INTC ) and Home Depot ( HD ) paced the winning blue chips with gains of 0.8% each.

The S&P 500 Index (SPX - 1,402.31) held its footing above 1,400, but ended the day with a 3.5-point, or 0.3%, decline. Meanwhile, the Nasdaq Composite (COMP - 3,059.85) climbed higher by 9.4 points, or 0.3%, turning in the best performance of its fellow benchmarks.

The CBOE Market Volatility Index (VIX - 16.88) pulled back from its intraday peak of 17.63, but added 1.7% by the time the dust settled. The VIX reclaimed its seat atop its 40-day moving average.

Newsmakers...

Private-sector employers added 119,000 jobs in April, according to payroll giant ADP . The report fell short of expectations, which called for an increase of 175,000.

Factory orders tumbled by 1.5% in March to $460.46 billion, said the Commerce Department , marking the steepest monthly decline since January 2009. However, the sizable drop arrived right in line with the consensus estimate.

Today's highlight : "Today's talk was all about the weak ADP numbers," said Detrick. "There's no doubt we've seen some weakening on the jobs front over the past month, and this is further confirmation. Still, this could just be a small blip on the radar, which makes Friday's monthly jobs number all that much more important."

Turning to today's major market stories...

For today's activity in commodities, options, and more, head to page 2.

Oil futures tumbled lower today, as the commodity took a hit on data showing that private-sector jobs grew at their slowest pace in seven months. A larger-than-expected increase in domestic crude inventories -- which hit their highest level since September 1990 -- also weighed on black gold. By the close, June-dated crude lopped off 94 cents, or 0.9%, to land at $105.22 a barrel.

Similarly, gold futures tallied their third straight loss, as a stronger dollar held the precious metal in negative territory all day. Gold for June delivery dropped $8.40, or 0.5%, to settle at $1,654 an ounce.

Levels to Watch in Trading :

  • Dow Jones Industrial Average (DJI - 13,268.73) - support at 11,500; resistance at 14,000
  • S&P 500 Index (SPX - 1,402.31) - support at 1,100; resistance at 1,500
  • Nasdaq Composite (COMP - 3,059.85) - support at 2,400; resistance at 3,400

OUTPERFORMING AND UNDERPERFORMING SECTORS

STOCKS - MOVERS

STOCKS - EARNINGS

STOCKS - NOTABLE CALL ACTIVITY

STOCKS - NOTABLE PUT ACTIVITY

For today's notable annual highs and lows, click here .

SCHAEFFER'S MARKET POSTURE

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: AA , CRM , HD , INTC , IWM

Schaeffer's Investment Research

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