"In one of the busiest days this earnings season, investors were
greeted with a slew of big-name company reports, and results were
mixed," said Schaeffer's Senior Equity Analyst Joe Bell, CMT.
"Overall, the broad markets took a break from the positive
momentum, and most major sectors finished in the red." A pair of
downbeat reports from Caterpillar (
) and AT&T (
) certainly didn't do the
Dow Jones Industrial Average (DJI)
any favors, as their weaker-than-expected results dragged the
blue-chip bellwether into the red through the close.
Continue reading for more on today's market, including
- Schaeffer's Senior Trading Analyst Bryan Sapp reflects on
"yet another failure near [S&P] 1,700,"
and takes a closer look at Yahoo! (
- Our senior Options Strategist Tony Venosa, CMT, offers up a
potential trading idea for Bristol-Myers Squibb (
) in his latest
Chart of the Day
- General Motors' (
) sentiment backdrop is
ahead of tomorrow's quarterly earnings report.
New home sales hit a multi-year high, Ford (F) basked in
post-earnings glory, and Netflix (NFLX) gained popularity with the
Dow Jones Industrial Average (DJI - 15,542.24)
spent less than 30 minutes in the black this morning before
venturing into negative territory for the rest of the session. By
the close, the blue-chip barometer shed 25.5 points, or 0.2%. Only
10 Dow components finished higher, with Hewlett-Packard's (HPQ)
gain of 1.5% leading the way. Meanwhile, Caterpillar (
) paced the 20 decliners with an earnings-triggered drop of
S&P 500 Index (SPX - 1,685.94)
came within a hair's breadth of yesterday's record intraday high
right out of the gate this morning before quickly retreating, and
ended up finishing 6.5 points, or 0.4%, lower. Meanwhile, the
Nasdaq Composite (COMP - 3,579.60)
"bucked" the broader trend south to close a modest 0.3 point, or
CBOE Market Volatility Index (VIX - 13.18)
remained north of breakeven for the entire session, adding 0.5
point, or 4.1%, by the closing bell.
A Trader's Take
"The technology sector was the real star of the day, as it was
bolstered by the much better-than-expected earnings report from
Apple (AAPL)," continued Bell. "While many market participants were
in profit-taking mode, quite a bit of money flowed into the tech
sector and AAPL today."
3 Things to Know About Today's Market
- The Commerce Department said
new home sales
rose by 8.3% in June to an annual rate of 497,000, marking a
five-year high. On a year-over-year basis, new home sales surged
by 38.1%, the biggest increase since January 1992.
- Ford (F) reported an adjusted
of 45 cents per share this morning, topping analysts'
expectations of 37 cents per share. Meanwhile, revenue surged to
$38.1 billion, exceeding the consensus view.
- During a webcast presentation in San Francisco, Google (GOOG)
revealed the latest version of its
Nexus 7 tablet
, which offers more memory and higher resolution. The cost for
the 16-gigabyte version is $229, while the 32-GB version will go
for $269. Both will be available at stores such as Best Buy (BBY)
and GameStop (GME) next week.
5 Stocks We Were Watching Today
scored some bullish brokerage attention after reporting
stronger-than-expected quarterly earnings post-close
- Put players wagered on further downside for
by week's end.
Micron Technology (MU)
continued to feel the love from bullish bettors.
- Near-term call buyers are wagering on a post-earnings pop for
Sirius XM Radio (SIRI)
- The latest installment of
deserves more attention from Wall Street.
For a look at today's options movers and commodities
activity, head to page 2.
Crude oil futures felt the weight of some downbeat manufacturing
data out of China today, and responded by finishing at their lowest
level in nearly two weeks. By the close, September-dated oil shed
$1.84, or 1.7%, to end at $105.39 per barrel.
Meanwhile, gold futures endured their largest daily drop since
July 5, which was attributed to a strong greenback and a spike in
new home sales. By the time the dust settled, the August contract
was off $15, or 1.1%, to finish at $1,319.70 an ounce.
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