S&P 500 Index (SPX)
edged modestly higher today, the
Dow Jones Industrial Average (DJI)
sold off into the close, extending its losing streak to five days,"
said Schaeffer's Senior Technical Strategist Ryan Detrick, CMT.
"This is nothing more than an oversold bounce at this point. The
bears have taken control during the historically bearish month of
August, and today did little to change that." Ahead of tomorrow's
release of the latest Federal Open Market Committee (FOMC) meeting
minutes, the major averages finished mixed, with the Dow hovering
just above the 15,000 mark.
Continue reading for more on today's market, including
- While Schaeffer's Senior Trading Analyst Bryan Sapp sees the
potential for future gains, he notes that a retaking of 1,675 on
the S&P 500 is
"the major test"
in terms of a more solid recovery.
- The latest installment of
highlights three retail stocks that have seen accelerated
- Short-term bulls converged on Netflix (
) amid reports of an
extended licensing agreement
with a major film studio.
The Chicago Fed's National Activity Index improved in July,
Home Depot (
) trumped earnings expectations, and Zynga (
) was on Wall Street's bearish radar.
Dow Jones Industrial Average (DJI - 15,002.99)
sank to an intraday low of 14,992.16 -- its first violation of the
15,000 level since July 5 -- within the first 30 minutes of the
session. Despite reversing course later in the day, the blue-chip
index still ended up closing 7.8 points, or 0.1%, lower. Intel (
) led the Dow's 14 advancers with a gain of 1.1%, while Home Depot
) paced the 15 laggards with a loss of 1.2%. DuPont (
) remained unchanged.
S&P 500 Index (SPX - 1,652.35)
also spent some time south of breakeven this morning, but managed
to finish with a gain of 6.3 points, or 0.4%. Meanwhile, the
Nasdaq Composite (COMP - 3,613.59)
added 24.5 points, or 0.7%.
CBOE Market Volatility Index (VIX - 14.91)
fell to a session low of 14.29 earlier this afternoon, but narrowed
its daily loss to 0.2 point, or 1.3%, by the closing bell.
A Trader's Take
"Some strong earnings out of the retail sector sparked today's
bounce," noted Detrick. "Last week's earnings from Cisco Systems
(CSCO) and Wal-Mart (WMT) prompted the big 200-plus-point drop last
Thursday, so some positive news on the retail front was a nice
change. Still, tomorrow is the release of the Fed minutes, and any
chance to get into Ben Bernanke's head will be greeted with much
hoopla and a lot of excitement. Are they tapering? Aren't they
tapering? Tune in tomorrow for the answers, or potentially just
3 Things to Know About Today's Market
- The Federal Reserve of Chicago said its
National Activity Index
arrived at negative 0.15 in July. Although this latest figure was
up from June's reading of negative 0.23, it still fell short of
the consensus view. A reading below zero signals below-average
economic growth across the nation.
- Home Depot (
) reported a
of $1.80 billion, or $1.24 per share, up from $1.53 billion, or
$1.01 per share, in the year-ago period. Meanwhile, revenue
jumped by 9.5% to $22.5 billion. Analysts were expecting
per-share earnings of $1.21 on sales of $21.8 billion. HD also
raised its full-year outlook to $3.60 per share from $3.52.
Asian markets had a rough day
, experiencing extended losses across the board. Some of the
"highlights": Japan's Nikkei finished at an almost two-month low,
while South Korea's Kospi dropped to a one-week low. In terms of
emerging markets, Indonesia's Jakarta Composite entered bear
market territory following its 4.5% decline, and has shed 22%
since touching a record high in May.
5 Stocks We Were Watching Today
- Jefferies upped its price target for
ahead of next week's quarterly earnings report.
EMC Corporation (EMC)
traders bet on continued resistance for the stock by selling to
open front-month calls.
- One cautious shareholder constructed a collar on
Bank of America (BAC)
to guard against extended declines.
was slapped with a "sell" rating, as the stock tries to recover
from last month's earnings-induced drop.
- Bullish sentiment toward
has been on the rise lately, both in and out of the options
For a look at today's options movers and commodities
activity, head to page 2.
Crude oil futures settled lower for a second straight session,
pressured lower by ongoing stimulus anxieties. By the close,
September-dated oil -- which expired today -- shed $2.14, or 2%, to
end at $104.96 per barrel.
Conversely, gold futures finished higher -- notching their
eighth advance in 10 days -- thanks to a promising demand outlook
in Asia. The December-dated contract gained $6.90, or 0.5%, to
close at $1,372.60 an ounce.
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