"After the heavy list of economic data yesterday, we had the
producer price index (PPI) numbers and the Thomson
Reuters/University of Michigan consumer sentiment index today,"
summarized Schaeffer's Trading Analyst Peter Bryans. "The latter
came in lower than expected, and discretionary names continued to
be laggards." The
Dow Jones Industrial Average (DJI)
nevertheless managed to close in positive territory, though it
posted a weekly loss after two days of heavy selling activity.
Trading Topic of the Week
Continue reading for more on today's market, including
-- Tips for Short-Term Trading:
Determine your exit plan in advance
. Lay down some ground rules before entering the trade, or you
might find yourself paralyzed by a big stock swing -- or, just as
dangerous, caught up by fear or greed.
Dow Jones Industrial Average (DJI - 16,775.74)
closed 41.6 points, or 0.3%, higher, but remained below its 10-day
moving average and ended 0.9% lower for the week. Seventeen of the
Dow's 30 components rose on the day, led by
Intel Corporation (
, which surged 6.8%. Pacing the 10 decliners was Wal-Mart Stores,
Inc. (WMT), which logged a 0.6% drop. Three names -- The Walt
Disney Company (DIS), Johnson & Johnson (JNJ), and JPMorgan
Chase & Co. (JPM) -- were unchanged on the day.
S&P 500 Index (SPX - 1,936.16)
managed to bounce 6.1 points, or 0.3%, into the green, but also
settled with a weekly loss, shedding 0.7% since last Friday. The
Nasdaq Composite (COMP - 4,310.65)
rose 13 points, or 0.3%, but ended the week down 0.2%.
CBOE Volatility Index (VIX - 12.18)
slipped 0.4 point, or 3%, but managed to close a week north of 12
for the first time since mid-May. Week-over-week, the market's
"fear gauge" rose 13.5%.
A Trader's Take
"Overall, the market was rather slow and ended up closing lower
on the week," added Bryans. "Arguably the best thing about this
week was that the iShares Russell 2000 Index (IWM) broke back above
its year-to-date breakeven level, and has held this price area as
5 Items on Our Radar Today
- President Obama
put Americans' minds at ease today
by declaring, "We will not be sending U.S. troops back into
combat in Iraq." What the U.S. will do to help the Iraqis defend
against insurgents remains to be seen, as the commander in chief
has been meeting with his national security team about potential
short-term military options, including airstrikes.
- The Labor Department said its PPI
dipped 0.2% in May
-- following a 0.6% increase the month prior. This was south of
economists' expectations, and indicative of subdued inflation
(Reuters, via CNBC)
- Intel Corporation (
) accelerated higher today after
lifting its revenue outlook
, thanks to a better-than-expected sales environment for business
computers. The semiconductor giant now expects to book $13.4
billion to $14.billion in sales in the second quarter, up from
earlier estimates of $12.5 billion to $13.5 billion. The company
also boosted its outlook for the full year.
- The hits kept on coming for
Lululemon Athletica inc. (LULU)
, which plunged to a three-year low for a second straight session
after waking up to more negative broker attention.
BlackBerry Ltd (
speculators bet on an earnings-related surge in the shares.
For a look at today's options movers and commodities
activity, head to page 2.
Oil futures continued to gain ground on uncertainty surrounding
the worsening situation in Iraq. The July contract rose 38 cents,
or 0.4%, to close at $106.91 per barrel. Week-over-week, crude rose
4.1%, the commodity's best weekly gain since early December.
August gold futures kept the winning streak alive -- by a narrow
margin -- adding 10 cents to end the week at $1,274.10 an ounce. On
a weekly basis, the yellow metal added 1.7% against a shaky