Stocks Post New Records, Then Modest Losses

By
A A A
Share |

"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 the 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 :

plus...
  • Rate decisions from around the globe, a psychological victory for the dollar, and long-term bullish bets in JP Morgan Chase ( JPM ).

The 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 ( MMM ) leading the charge, rallying 1.6% and hitting a new record high along the way. Pacing the declining majority was JP Morgan Chase ( JPM ), 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. The 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.

The 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.

CLOSING SUMMARY - INDICES

CLOSING SUMMARY - NYSE AND NASDAQ

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 28%."

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. (Reuters)
  • Spurred by the better-than-expected jobless claims number, the U.S. dollar rallied through the 100-Japanese-yen threshold for the first time since April 2009. (MarketWatch)

5 Stocks We Were Watching Today :

  1. Call buyers targeted a long-term breakout in JPMorgan Chase ( JPM ).
  2. General Electric (GE) was the target of short-term put buyers hoping for modest declines.
  3. Bullish speculation on Sprint Nextel Corporation (S) continued, as the stock tagged a new multi-year high.
  4. Bullish analysts descended upon Green Mountain Coffee Roasters (GMCR) in the wake of its better-than-expected earnings news.
  5. Groupon (GRPN) bears who placed eleventh-hour bets were sorely disappointed by the company's well-received earnings report.

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 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.

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.

All Rights Reserved. Unauthorized reproduction of any SIR publication is strictly prohibited.


This article appears in: Investing , Options

Referenced Stocks: BBRY , BKS , JPM , MMM , MSFT

Schaeffer's Investment Research

Schaeffer's Investment Research
  • See all for Schaeffer's Investment Research
  • View Print Version

More from Schaeffer's Investment Research:

Related Videos

Stocks

Referenced

Most Active by Volume

89,970,926
  • $16.15 ▲ 0.12%
77,131,582
  • $58.94 ▼ 1.31%
67,336,935
  • $26.56 ▲ 1.68%
48,814,124
  • $86.20 ▲ 0.02%
47,526,126
  • $23.21 ▲ 0.78%
44,660,424
  • $23.91 ▲ 6.36%
38,799,699
  • $4.289 ▲ 4.36%
36,199,890
  • $40.01 ▼ 0.97%
As of 4/17/2014, 04:07 PM