Stocks Bounce from Two-Day Sell-Off; Intel Helps Buoy Dow

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"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.

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

Trading Topic of the Week -- 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.

The 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 ( INTC ) , 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.

The 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%.


The 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%.

CLOSING SUMMARY - INDICES

CLOSING SUMMARY - NYSE AND NASDAQ

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 of late."

5 Items on Our Radar Today :

  1. 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. (CNN)
  2. 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 pressures. (Reuters, via CNBC)
  3. Intel Corporation ( INTC ) 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. (USA Today)
  4. 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.
  5. Hopeful BlackBerry Ltd ( BBRY ) speculators bet on an earnings-related surge in the shares.

EARNINGS

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

STOCKS - NOTABLE CALL ACTIVITY

STOCKS - NOTABLE PUT ACTIVITY

Commodities :

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 geopolitical backdrop.

SCHAEFFER'S MARKET POSTURE



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: FNSR , FB , TSLA , INTC , BBRY

Schaeffer's Investment Research

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