"Even though today was a very light-volume bounce, we saw
Friday's strength ultimately carry through," summarized Schaeffer's
Senior Technical Strategist Ryan Detrick, CMT. "Monday is usually a
weak day, and last Monday was a total bloodbath. So it was nice to
see we bucked that trend today." After a slow start, the
Dow Jones Industrial Average (DJI)
enjoyed an afternoon recovery to close slightly higher, though it
lagged its index peers.
Continue reading for more on today's market, including
- S&P 1,550 is back in play, European investors cheer
stability in Italy, and the options market has high expectations
for Netflix (
After losing nearly 90 points during the first hour of trading,
Dow Jones Industrial Average (DJI)
managed to pull itself into positive territory by the close,
finishing up 19.7 points, or 0.1%, at 14,567.17. Of the Dow's 30
members, 18 closed in the black on the day, led by Microsoft
), which continued to rally after Thursday evening's earnings
report, adding 3.6%. Pacing the dozen decliners was General
), off 1.8%.
S&P 500 Index (SPX)
dipped just south of the supportive 1,550 level in mid-morning
trading, but this round number wasn't going down without a fight.
By the close, the S&P had bounced back 7.3 points, or 0.5%, to
settle at 1,562.50. Elsewhere, the
Nasdaq Composite (COMP)
outperformed its contemporaries, rallying 0.9%, or 27.5 points, to
close at 3,233.55.
CBOE Market Volatility Index (VIX)
continued its backslide from Friday, shedding 0.6 point, or 3.9%,
to end the session at 14.39. Since Thursday's close, the VIX has
dropped more than 18%.
A Trader's Take
"We will be hit with hundreds of earnings reports over the next
few days," Detrick noted. "The general consensus so far this
earnings season is revenue has been light and guidance has been
weak. After the huge bounce we've seen to start the year, earnings
had better pick it up to justify some of the valuations out
3 Things to Know About Today's Market
- The National Association of Realtors reported that
existing home sales
slumped 0.6% in March to a seasonally adjusted annual rate of
4.92 million. Economists had been expecting the sales figure to
rise to 5.01 million units. Year-over-year, the median sale price
for an existing home rose 11.8% last month to $184,300.
- Dow component Caterpillar (CAT)
disappointed the Street
with its first-quarter earnings news today, as per-share results
and revenue both fell short of estimates. For the full fiscal
year, CAT reduced its earnings and revenue outlooks. The stock
slumped into the red early on but quickly recovered, closing up
- Stocks gained across the pond after Giorgio Napolitano
was easily re-elected
as Italy's president. At 87 years old, he became the first
Italian president in history to win a second term.
5 Stocks We Were Watching Today
- Ahead of Netflix Inc. (
) earnings tonight, the options market was pricing in
a significant move
- Exxon Mobil (XOM) bulls believe a new
is in the cards by this fall.
- Bears swarmed Molycorp (MCP),
snatching up puts
in the newly front-month May series.
- EMC Corporation (EMC) speculators
bought out-of-the-money puts
ahead of the company's earnings report.
- NIKE, Inc. (NKE) saw a
at UBS this morning.
For a look at today's options movers and commodities
activity, head to page 2.
Crude futures rose on Monday, following an afternoon rebound in
stocks. Oil for May delivery closed its final day of trading up 75
cents, or 0.9%, at $88.76 per barrel.
Gold futures also advanced, as continued demand from bargain
hunters offset a downwardly revised 2013 price forecast from
Barclays. June-dated gold tacked on $25.60, or 1.8%, to end the
session at $1,421.20 per ounce.
At the end of every market day, the staff at Schaeffer's
Investment Research reviews the trading day in detail, covering
major events and key market developments. Don't miss this
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