"European markets were down quite a bit today, which set a
negative tone for U.S. markets in early trading," reported
Schaeffer's Senior Equity Analyst Joe Bell, CMT, of a day that saw
Dow Jones Industrial Average (DJI)
move further into the red, ending January with a 5.3% loss. "Most
major market indexes are trading around their December lows, which
have pretty much defined the bottom of this week's range."
Trading Topic of the Week
Continue reading for more on today's market, including
-- Tips for Short-Term Trading:
Determine your exit plan in advance.
Lay down some ground rules before entering the trade, or you might
find yourself paralyzed by a big stock swing -- or, just as
dangerous, caught up by fear or greed.
It was back into the red for the
Dow Jones Industrial Average (DJI - 15,698.85)
today, which closed with a loss of 149.8 points, or 0.9%, after
spending the entire day south of the flatline. On a weekly basis,
the Dow relinquished 1.1%, and lost 5.3% in January. Today,
Microsoft Corporation (
) led the Dow's five advancers, with a gain of 2.7%. Chevron
) was at the back of the pack, shedding 4.1% following its
quarterly earnings report.
S&P 500 Index (SPX - 1,782.59)
also lost ground, shedding 11.6 points, or 0.7%. Elsewhere, the
Nasdaq Composite (COMP - 4,103.88)
moved lower as well, giving back 19.3 points, or 0.5%. The SPX shed
0.4% this week and dropped 3.6% in January; the COMP peeled back
0.6% for the week and 1.7% for the month.
CBOE Volatility Index (VIX - 18.41)
powered through the 18 level to settle north of this mark for only
the second time since mid-October. At the close, the VIX had gained
1.1 points, or 6.5%. The market's fear gauge posted a weekly gain
of 1.5% and a monthly increase of 34.2%.
A Trader's Take
"Large-caps and blue-chips once again lagged the market, while
home builders and utilities performed quite well," Bell continued.
"Right now there seems to be quite the battle between bulls and
bears, and today, buyers tried to defend their territory. Bigger
picture, we remain in a very tight range, and volatility
5 Items on Our Radar Today
- The Thomson Reuters/University of Michigan consumer sentiment
index for January
dipped 1.3 points
from last month's reading, to 81.2, roughly in line with
in December rose 0.4% to top economists' expectations, and
personal income was unchanged.
(Reuters; FOX Business )
- World's leading retailer Wal-Mart Stores, Inc. (
issued revised guidance
for its fourth-quarter and full-year earnings. Sales may also
come in south of estimates, due to Brazil-related expenses,
inclement weather, and an adjustment to food stamp benefits in
- In the wake of its post-earnings collapse,
Amazon.com, Inc. (
received a handful of brokerage notes from both sides of the
- Option bulls continued to bet on additional upside for
Facebook Inc (FB)
, which tagged a new record high again today.
- Option bears have pounced on
Avon Products, Inc. (AVP)
as the stock visits new annual lows.
For a look at today's options movers and commodities
activity, head to page 2.
Concerns over energy demand reared their head again, sending
crude futures lower for the session. By the close, March-dated oil
had lost 74 cents, or 0.8%, to rest at $97.49 per barrel. Comparing
most-active contracts, black gold slumped more than 0.9% in
Gold futures also fell in today's trading, as investors weighed
a stronger dollar against continued weakness in stocks. April-dated
gold lost $2.70, or 0.2%, on the day to settle at $1,239.80 per
ounce. In January, gold futures rose roughly 3.1% when gauging
All Rights Reserved. Unauthorized reproduction of any SIR publication is strictly prohibited.