The
Dow Jones Industrial Average (DJI)
bumped higher this morning, but lost steam as Wall Street
contemplated the domestic and global economy. "On the one hand, we
had very weak manufacturing data, which confirmed that the U.S.
economy is slowing," said Schaeffer's Senior Technical Strategist
Ryan Detrick. "Yet, on the other hand, construction spending was
very strong, again suggesting the very sensitive housing market
continues to buck the trend and go higher."
Keep reading to see what else was on our radar today:
- Check out the surprisingly close
year-to-date returns for stocks, bonds, and gold
with Bernie Schaeffer.
-
Lunatic levels of volatility
! Read the most recent commentary from
Bernie Schaeffer's
Option Advisor
.
- Plus, will exceedingly low expectations
fuel the next market rally
?
And now, a look at the numbers...
The
Dow Jones Industrial Average (DJI - 12,871.39)
endured a near 107-point swing today, touching a session high of
12,902.12 just after the open, and falling to a session low of
12,795.48 before lunchtime. But ultimately, the Dow closed lower by
only 8.7 points, or 0.07%. Fifteen of the 30 blue chips enjoyed
gains, as JPMorgan Chase & Co. (
JPM
) and AT&T (
T
) led the outperforming issues with rises of 1.5% apiece. DuPont (
DD
) paced the fourteen laggards with a 2.3% drop, while Pfizer Inc. (
PFE
) ended unchanged.
The
S&P 500 Index (SPX - 1,365.51)
eked out a win in the last minutes of trading, inching 3.4 points,
or 0.3%, higher. Meanwhile, the
Nasdaq Composite (COMP - 2,951.23)
turned in the best performance of its fellow benchmarks, jumping
16.2 points, or 0.6%.
The
CBOE Market Volatility Index (VIX - 16.80)
leapt as high as 18.19 this morning, but spent the rest of the
session on a slow decline. By the close, the VIX slipped 1.6%, and
notched its lowest daily settlement since May 2.
Today's highlight
: "When you consider that the Dow gained nearly 300 points on
Friday, I think today's action is rather encouraging," suggested
Detrick. "There was a time not that long ago when a big move up
nearly promised a big (if not bigger) move down the very next day.
Today's action is a
big step in the right direction for further higher
prices
.
Turning to today's major market stories...
-
Bernie Schaeffer On Charts
: How Long Can SPY, GLD, and TLT Stay In Sync?
- What did the
Purchasing Managers Index (PMI)
reveal about the state of the global economy?
- With the summer days upon us, Schaeffer's Columnist Adam
Warner explained how
traders price in particularly slow sessions for the
VIX
.
-
Option Trends
: Dell Inc. (
DELL
), Level 3 Communications, Inc. (LVLT), and Logitech
International S.A. (LOGI).
-
SXC Health Solutions Corp. (NASDAQ:SXCI)
charged to an all-time peak, while
First Niagara Financial Group Inc. (FNFG)
plunged to an all-time low.
- Online issues
Pandora Media Inc (P)
and
OpenTable Inc (OPEN)
were targeted by analysts earlier today.
- Put activity bubbled up on
RadioShack Corporation (RSH)
and
Anheuser-Busch InBev NV (BUD)
.
- An options bull
rolled up his position on
AK Steel Holding Corporation (AKS).
-
Pessimism amplified on Xilinx, Inc. (XLNX)
, as the shares prolonged their stay below their 200-day moving
average.
-
Shareholders are protecting their bullish bets
on Pharmacyclics, Inc. (PCYC).
- A
long straddle was initiated
on Mosaic Co (MOS).
- And in case you missed it... The July edition of
Bernie Schaeffer's
Option Advisor
commentary is now online.
For today's activity in commodities, options, and more, head
to page 2.
After enjoying their largest percentage daily gain since March
2009 on Friday, oil futures were pressured lower by disappointing
manufacturing reports for the U.S. and abroad, as well as
profit-taking investors. As the dollar edged higher, August-dated
crude declined $1.21, or 1.4%, to land at $83.75 per barrel.
Likewise, lagging global manufacturing activity and a
strengthened greenback weighed on gold futures. By the close, gold
for August delivery clipped off $6.50, or 0.4%, to settle at
$1,597.70 an ounce.
Levels to watch in trading...
-
Dow Jones Industrial Average (DJI - 12,871.39)
- support at 11,500; resistance at 14,000
-
S&P 500 Index (SPX - 1,365.51)
- support at 1,100; resistance at 1,500
-
Nasdaq Composite (COMP - 2,951.23)
- support at 2,400; resistance at 3,400
Click the links for coverage on today's
notable annual highs
and
notable annual lows
.
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