"The unbelievable streak of positive Tuesdays is over," sighed
Schaeffer's Senior Equity Analyst Joe Bell, CMT. "After 20
consecutive positive Tuesdays, the
Dow Jones Industrial Average (DJI)
finished lower today, as late-day selling overwhelmed early
buyers." This had been the longest streak of its kind since at
Continue reading for more on today's market, including
Fed worries continue, Amazon.com (
) plans for world domination, and Zynga (
) gets kicked when it's down.
The streak of winning Tuesdays in the
Dow Jones Industrial Average (DJI)
had to end at some point, and that point was today. After trading
in positive territory for the first hour of the day, the index fell
solidly below the breakeven point in mid-afternoon trading, closing
with a loss of 76.5 points, down 0.5% at 15,177.54.
S&P 500 Index (SPX)
, also dropped, giving back 9 points, or 0.6%, to 1,631.38 after an
intraday rejection from its 10-day moving average. The index ended
the day a hair above Friday's closing level. The
Nasdaq Composite (COMP)
, meanwhile, surrendered 20.1 points, or 0.6%, to settle at
3,445.26. This was the lowest closing point for the tech-laden
index since May 13.
Following a fractional close lower on Monday, the
CBOE Market Volatility Index (VIX)
posted a minor drop again today. At the close, the fear barometer
was off less than 0.1 point, or 0.1%, at 16.27. Intraday, the VIX
peaked at 17.25.
A Trader's Take
"Early market action was relatively strong today, but selling
pressure took over in early afternoon trading, and most sectors
finished in the red," noted Bell. "Although small- and mid-caps
suffered the brunt of the damage, the selling seemed rather
widespread. Meanwhile, some money flowed toward the Treasurys
market, as many traders await the employment report this
3 Things to Know About Today's Market
- The U.S. trade deficit
widened to $40.3 billion in April
-- an increase of 8.5% from March -- as imports rose by 2.4%
while exports increased by a smaller 1.2%.
- Esther George -- president of Kansas City's Federal Reserve
reiterated her concerns
about the central bank's quantitative easing efforts, noting her
desire to taper "the pace of asset purchases as an appropriate
next step for monetary policy." A vocal hawk, Ms. George was the
sole dissenter of bond-buying activities at this year's first
three Fed meetings.
(The Wall Street Journal)
- Amazon.com (
) is set to
assert its position in the grocery business
, with plans to expand delivery of perishable items beyond its
Seattle headquarters. For half a decade, the retailing giant has
been testing the local fulfillment of groceries such as fresh
produce and meat.
5 Stocks We Were Watching Today
In the wake of downsizing news
, Zynga Inc (
) endured a price-target cut from Piper Jaffray.
- Call buyers think Toyota Motor Corporation (
bound for new multi-year highs
- Short-term Tesla Motors (
) call sellers were eying
potential resistance at the 100 strike
- Coca-Cola (
option bears were thirsty
for long-term, out-of-the-money puts.
- Level 3 Communications (LVLT) put sellers wagered on
For a look at today's options movers and commodities
activity, head to page 2.
Oil was little changed on Tuesday, as investors waited on the
sidelines ahead of Wednesday's inventories report. By the close,
July-dated crude had slipped 14 cents, or 0.2%, to end the session
at $93.31 per barrel.
Gold futures again violated the $1,400 mark, after finishing
north of this psychologically significant threshold on Monday. Gold
for August delivery was down $14.70 today, dropping 1% to settle at
$1,397.20 an ounce. One analyst with Wescott Financial opined that,
"there is no strong reason to buy or sell [gold]" in the short