"Markets can't go up every day -- unless that day is Tuesday, of
course," quipped Schaeffer's Senior Technical Strategist Ryan
Detrick, CMT. "For those of you keeping score at home, the
Dow Jones Industrial Average (DJI)
has been up a record 17 consecutive Tuesdays. I'm not a betting
man, but heading into tomorrow, you might not want to bet against
the power of Tuesday." For today, however, the Dow gave back a
fraction of last week's gains, ending with a loss of roughly 26
Continue reading for more on today's market, including
- Senior Trading Analyst Bryan Sapp outlines the "
big week ahead
," and suggests what to expect.
on Cisco Systems (
), J.C. Penney (
), and Deere & Company (
). Which names seem poised for potential upside?
- One Facebook Inc (
) call buyer scooped up a
to bet on a big move.
- Retail sales surprise, the Fed plans an end to QE3, and
option players forecast a new all-time high for Google Inc (
Dow Jones Industrial Average (DJI)
shuffled sideways in a relatively tight range just below the
breakeven mark on Monday. By the close, the Dow had given back 26.8
points, or 0.2%, to end at 15,091.68. Thirteen of the Dow's 30
members finished higher, however, with Pfizer (PFE) nabbing the top
spot, up 2.3%. Pacing the declining majority was Alcoa (AA), which
dropped nearly 2%.
After spending much of the day in the red, the
S&P 500 Index (SPX)
eked into positive territory by the closing bell. Specifically, the
broad-based index ended up less than 0.1 point at 1,633.77. In
morning trading, the SPX notched another new all-time intraday high
of 1,636.00. The
Nasdaq Composite (COMP)
hit another 12-year intraday peak of 3,447.10 earlier today before
closing up just 2.2 points, or 0.1%, at 3,438.79.
CBOE Market Volatility Index (VIX)
spent much of its day above the breakeven level -- reaching as high
as 12.87 -- but settled on a loss, down less than 0.1 point, or
0.3%, at 12.55, just shy of its intraday low.
A Trader's Take
"After some solid gains last week, U.S. markets held very tough
today ... there was a little fear over the weekend, as word leaked
that the Fed was considering an exit plan for its
$85-billion-per-month bond-buying program," noted Detrick. "I don't
really buy this was much more than something to talk about,
however, as the news shouldn't come as a shock. More importantly,
retail sales for April came in better than expected. Sure, the
reading wasn't great, but then again, the economy continues to defy
3 Things to Know About Today's Market
- The Federal Reserve may begin
scaling back its monthly bond-buying program
, according to an article in Monday's
Wall Street Journal
. While the precise timing of this shift remains a mystery,
central-bank officials have reportedly outlined a plan to begin
reducing its $85 billion monthly commitment.
- Retail sales
ticked 0.1% higher in April
(on a month-over-month basis), surprising economists, who had
forecast a drop in the reading. Particular pockets of growing
sales demand were vehicles and home and garden supplies.
- Members of a Dell Inc. (DELL) special board
contacted Carl Icahn
for specifics on his plan to overtake the company for $12 per
share. Mr. Icahn's proposal -- made in cooperation with
Southeastern Asset Management -- would keep the PC maker publicly
5 Stocks We Were Watching Today
- Advanced Micro Devices (AMD) option bulls
targeted more upside
over the next several weeks.
- Bearish Baidu.com (BIDU) traders expect a
in the shares.
- Can Google Inc (
) hit another
new all-time high
? Some call buyers seem to think so.
- One firm
lifted its price target
on Sirius XM Radio (SIRI) by 11% to $4 per share.
- Molycorp Inc (MCP) option speculators
in the wake of the company's earnings report.
For a look at today's options movers and commodities
activity, head to page 2.
Concerns of an end to QE3 combined forces with a rising U.S.
dollar to send crude futures south today. At the close, June-dated
oil had given back 87 cents, or 0.9%, to end at $95.17 per barrel,
the lowest settlement since May 2.
Gold futures also moved lower, turning in their third straight
decline. June gold futures settled at $1,434.30 an ounce, shedding
$2.30, or 0.2%.