"We didn't see any major moves one way or the other," summarized
Schaeffer's Senior Equity Analyst Joe Bell, CMT, of a day that saw
Dow Jones Industrial Average (DJI)
slump 23 points on the day after edging up to another new record
high in mid-afternoon trading. "Late in the day, rumors surfaced
that perhaps the Fed was getting close to slowing its
quantitative-easing efforts. This spurred a little selling, but
overall not a lot of action."
Continue reading for more on today's market, including
- Rate decisions from around the globe, a psychological victory
for the dollar, and long-term bullish bets in JP Morgan Chase (
Dow Jones Industrial Average (DJI)
traded in a range of roughly 100 points, hitting a new all-time
high of 15,144.83 before settling down 22.5 points, or 0.2%, at
15,082.62, roughly 36 points off its low-water point of the
session. One dozen of the Dow's 30 members closed in positive
territory, with 3M Company (
) leading the charge, rallying 1.6% and hitting a new record high
along the way. Pacing the declining majority was JP Morgan Chase (
), which gave back 1.5% on the day.
Also declining was the
S&P 500 Index (SPX)
, which ended the session with a loss of 6 points, or 0.4%, at
1,626.67, but not before notching its own record high of 1,635.01.
Nasdaq Composite (COMP)
followed a similar path; after hitting another 12-year peak of
3,428.54, it eventually closed with a marginal loss, down 4.1
points, or 0.1%, at 3,409.17.
CBOE Market Volatility Index (VIX)
moved higher today, gaining 0.5 point, or 3.7%, to close at 13.13,
its first daily finish north of 13 since May 2.
A Trader's Take
"The best thing about today's market was the big earnings report
from Green Mountain Coffee Roasters (GMCR)," noted Bell. "Although
they missed revenue estimates, the company beat on earnings and
raised its guidance. In addition, they announced a long-term
agreement with Starbucks (SBUX) that sent the stock soaring almost
3 Things to Know About Today's Market
- The Bank of England opted to
leave its benchmark interest rate untouched
at its current all-time low of 0.5%. The central bank also failed
to change its $581 billion bond-buying program. Elsewhere, the
Bank of Korea issued a
surprise rate cut
-- its first in seven months -- to 2.25% from 2.5%.
(The New York Times, BBC News)
- Weekly jobless claims
retreated by 4,000
to a seasonally adjusted 323,000, the lowest reading since
January 2008. The news was better than expected, as economists
had forecast a slight rise in the figure.
- Spurred by the better-than-expected jobless claims number,
U.S. dollar rallied
through the 100-Japanese-yen threshold for the first time since
5 Stocks We Were Watching Today
- Call buyers targeted a
in JPMorgan Chase (
- General Electric (GE) was the target of
short-term put buyers
hoping for modest declines.
on Sprint Nextel Corporation (S) continued, as the stock tagged a
new multi-year high.
- Bullish analysts
Green Mountain Coffee Roasters (GMCR) in the wake of its
better-than-expected earnings news.
- Groupon (GRPN) bears who placed eleventh-hour bets were
by the company's well-received earnings report.
For a look at today's options movers and commodities
activity, head to page 2.
Crude futures pulled back today, moving inversely to a suddenly
robust U.S. dollar. June-dated oil gave up 23 cents, or 0.2%, to
end the day at $96.39 per barrel.
Gold also closed in the red, as an upbeat report on U.S.
employment diminished the metal's safe-haven appeal. The June
contract settled down $5.10, or 0.4%, at $1,468.60 per ounce.
All Rights Reserved. Unauthorized reproduction of any SIR publication is strictly prohibited.