"Another wild session," noted Schaeffer's Senior Technical
Strategist Ryan Detrick, CMT. "The story of the day was the Nasdaq
being closed for most of the afternoon. This is yet another
computer mistake that does little to help the average investor have
any confidence in the stock market. Still, after a six-day losing
streak for the
Dow Jones Industrial Average (DJI)
, it was very nice to see a bounce. The big question is, can it
stick?" Despite the aforementioned outage, all three of the major
indexes notched respectable gains.
Continue reading for more on today's market, including
- Schaeffer's Senior Trading Analyst Bryan Sapp recaps the
market's reaction to
today's Nasdaq glitch
, and continues to focus on a key area for the S&P 500.
- As LDK Solar (
) prepares to report
next Tuesday morning, sentiment has been mixed toward the
alternative energy issue.
In case you missed it:
Schaeffer's contributor Adam Warner gives an overview of
and offers some advice regarding VIX futures/options.
Weekly jobless claims climbed more than expected, the
Conference Board's Index of Leading Economic Indicators advanced in
July, and American Eagle Outfitters (
) was hit with a round of earnings-induced price-target cuts.
Dow Jones Industrial Average (DJI - 14,963.74)
spent the entire session in positive territory courtesy of some
encouraging economic data, and touched an intraday high of
14,989.12 in the final hour of trading. By the closing bell, the
blue-chip barometer was up 66.2 points, or 0.4%, effectively ending
its six-day losing streak. Microsoft's (
) 2.5% gain led the 24 advancers, while Hewlett-Packard's (
) earnings-induced drop of 12.5% paced the six laggards.
S&P 500 Index (SPX - 1,656.96)
notched a full day in the black, as well, and finished 14.2 points,
or 0.9%, higher. Meanwhile, despite a trading cessation of more
than three hours, the
Nasdaq Composite (COMP - 3,638.71)
climbed 38.9 points, or 1.1%.
CBOE Market Volatility Index (VIX - 14.76)
fell south right out of the gate and stayed there, losing 1.2
points, or 7.4%, on the day.
A Trader's Take
"In the end, the bulls came back nicely," Detrick continued.
"Banks and small caps led the way, which is always a good sign.
Sentiment has gotten very cautious if you look at some of the
recent sentiment polls. September is historically a weak month, but
it is actually up on average over the past 10 years. Things will
probably be slow for the rest of August, and then the big traders
will come back. Stay tuned."
3 Things to Know About Today's Market
- An unexplained outage
halted trading on the Nasdaq
today at 12:14 p.m. ET. The technical snafu froze prices of all
stocks, exchange-traded funds, and options listed on the
exchange, and caused other venues to halt trading activity for
those securities, as well. Per data from BATS Global Markets
Inc., "Tape C" issues had comprised about 28% of all stocks
traded in August thus far.
- The Labor Department said
first-time jobless claims
rose by 13,000 last week to 336,000, which was slightly above the
consensus view. Meanwhile, the four-week moving average for
initial unemployment filings dropped about 5% to 330,500, marking
its lowest level since November 2007.
- The Conference Board's
Index of Leading Economic Indicators
climbed by 0.6% to 96.0 in July, after remaining flat in the
month prior. The latest reading surpassed economists' forecast
for a rise of 0.5%, and signaled improvement in economic growth.
5 Stocks We Were Watching Today
received an upgrade at Nomura, despite the stock's lackluster
year-over-year price action.
- Disappointing earnings from
American Eagle Outfitters (
prompted a slew of brokerage firms to lower their price
- Call buyers ignored
J.C. Penney's (
latest investor-related headlines, and bet on a rebound by week's
- Speculators remained bearish toward
Bank of America (BAC)
by predicting a downturn ahead of January expiration.
DreamWorks Animation's (DWA)
new multi-year high lured September and October option bulls to
the trading table.
For a look at today's options movers and commodities
activity, head to page 2.
Crude oil futures finished in the black today, thanks to some
promising manufacturing data out of China. By the time the dust
settled, October-dated oil gained $1.18, or 1.1%, to close at
$105.03 per barrel.
Meanwhile, the same overseas news pushed gold futures higher,
although gains were modest due to strength in the greenback. The
December-dated contract tacked on 70 cents, or less than 0.1%, to
end at $1,370.80 an ounce.
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