Stocks Halt Losing Streak Despite Apple Inc. (AAPL) Woes

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"While Apple Inc.'s ( AAPL ) second-quarter outlook weighed down the technology sector a bit, the market sell-off was met with buyers today, who were looking to scoop up stocks at lower prices," observed Schaeffer's Senior Equity Analyst Joe Bell, CMT. "Most major market indexes breached their 50-day moving averages during the sell-off. While this concern was widely publicized, our studies have shown a break below this trendline didn't amount to much downside during 2013, and actually offered a nice buying opportunity." Although the Dow Jones Industrial Average (DJI) remains below its 50-day trendline, it gained ground today, ending its five-day losing streak.

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

Trading Topic of the Week -- Tips for Short-Term Trading: Check the charts for key support and resistance levels. Your time frame may be brief, but don't neglect those long-term charts -- or you could overlook a key stumbling block for the underlying stock.

The Dow Jones Industrial Average (DJI - 15,928.56) moved higher out of the gate and stayed in positive territory for the entire session, ultimately closing with a gain of 90.7 points, or 0.6%. Two dozen Dow names moved higher, led by Pfizer Inc.'s (PFE) earnings-related jump of 2.6%. Meanwhile, Cisco Systems, Inc. (CSCO) and DuPont (DD) paced the six decliners, each with a loss of 1.1%.

The S&P 500 Index (SPX - 1,792.50) also spent the day in the green, closing up 10.9 points, or 0.6%. And despite a nearly 8% drop in Apple Inc., the Nasdaq Composite (COMP - 4,097.96) managed to tack on 14.4 points, or 0.4%.

The CBOE Volatility Index (VIX - 15.80) was awash in red ink the entire day, surrendering 1.6 points, or 9.3%, to close back south of the 16 mark.

CLOSING SUMMARY - INDICES

CLOSING SUMMARY - NYSE AND NASDAQ

A Trader's Take :

"Homebuilding stocks had a nice bounce today, after D.R. Horton, Inc. (DHI) reported better-than-expected earnings," Bell noted. "The sector struggled a bit during the second half of 2013, but they are starting to pick up some momentum during the past couple of months."

5 Items on Our Radar Today :

  1. Apple slumped sharply today, following earnings that topped expectations but accompanied troubling news on iPhone sales and muted guidance for the second quarter. Activist investor Carl Icahn took the opportunity to add to his Apple stash , scooping up another $500 million worth of shares. (Los Angeles Times; CNNMoney)
  2. The Conference Board noted that its consumer confidence index rose to 80.7 in January -- a five-month high -- from December's updated reading of 77.5. The figure was also north of economists' expectations. (Fox Business)
  3. Options speculators are hoping for positive results when Las Vegas Sands Corp. ( LVS ) reports quarterly earnings tomorrow.
  4. Notably lower in 2014, Whole Foods Market, Inc. (WFM) suffered a price-target reduction at Sterne Agee this morning.
  5. Call buyers pounced on Netflix, Inc. (NFLX) , as the stock surged to a new record high just short of the $400 mark.

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 :

Crude futures headed higher today, ahead of this week's inventory update. Oil for March delivery gained $1.69, or 1.8%, to settle the session at $97.41 per barrel.

Gold futures slipped as well, as a bounce in equities diminished the metal's safe-haven appeal. By the close, February gold futures had surrendered $12.60, or 1%, to rest at $1,250.80 per ounce.

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.

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This article appears in: Investing , Options

Referenced Stocks: AAPL , C , LVS , QCOM , TWTR

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