"Once again, small-caps and technology stocks lagged today,"
stated Schaeffer's Senior Equity Analyst Joe Bell, CMT. "The
morning started off with the highly anticipated jobs report, and
overall it didn't shock the market too much, as the initial
reaction was positive. After a few hours, though, it was clear many
of the momentum names were lagging, and by midday almost every
major sector was in the red." After muscling to another new
intraday record out of the gate, the
Dow Jones Industrial Average (DJI)
turned tail mid-session, ultimately giving back triple digits by
Trading Topic of the Week
Continue reading for more on today's market, including
-- Trading Low-Priced Options:
DO trade stocks with a favorable sentiment
. At Schaeffer's, we use sentiment analysis to determine whether a
stock's current trend is likely to continue. To maximize returns,
we focus our efforts on outperforming stocks surrounded by
skepticism, and lagging equities that continue to attract bullish
Dow Jones Industrial Average (DJI - 16,412.71)
hit a new record peak of 16,631.63 in early trading, but reversed
course around midday, settling with a loss of nearly 160 points, or
1%. Just four of the Dow's 30 components dodged a negative finish,
led by The Coca-Cola Company's (
) 0.4% uptick. Visa Inc (V) led the laggards, dropping 3.4% on the
day. For the week, the Dow advanced 0.5%.
S&P 500 Index (SPX - 1,865.09)
also explored positive territory in early trading, notching a
record intraday peak of 1,897.28, but suffered the same fate as its
peers, surrendering 23.7 points, or 1.3%, by the close. The
Nasdaq Composite (COMP - 4,127.73)
fared the worst of the three major benchmarks, plunging 110 points,
or 2.6% -- the tech-rich index's worst daily percentage drop since
Feb. 3. For the week, the SPX added 0.4%, while the COMP gave up
CBOE Volatility Index (VIX - 13.96)
also explored both sides of breakeven, but busted higher as
equities dropped. By the close, the "fear barometer" advanced 0.6
point, or 4.4%, to end just a hair's breadth shy of its 10-day
moving average. For the week, the VIX fell 3.1%
A Trader's Take
"Many of the major indexes are trading near potential support
areas, but the recent underperformance by technology stocks is
apparent," noted Bell. "Whereas the S&P 500 Index is trading
near its former March highs, the Nasdaq Composite is actually right
near its March lows."
5 Items on Our Radar Today
rose by 192,000 in March, the Labor Department reported, with
February's gain upwardly revised to 188,000. Meanwhile, the
unemployment rate remained unchanged at 6.7%, as more people
entered the workforce. Economists, however, were calling for a
more robust gain of 200,000 jobs, and for the unemployment rate
to tick lower to 6.6%.
- Food delivery concern
GrubHub Inc (GRUB) made its Big Board debut
to much fanfare today. While the initial public offering (IPO)
was priced at $26 per share, the stock opened at $40, rallied as
high as $40.80 in intraday action, and ultimately settled 30.8%
higher at $34.
- Mylan Inc (MYL) bucked the broad-market trend lower today.
However, the pharmaceutical issue finished off its session highs,
after Swedish drugmaker Meda AB
spurned its buyout bid
Yahoo! Inc. (YHOO)
shareholders may be buying options insurance ahead of
- First Solar, Inc. (
) flew in the face of broad-market headwinds, thanks to
a relatively rare bullish note
from the brokerage bunch.
For a look at today's options movers and commodities
activity, head to page 2.
Crude oil extended its run in triple-digit territory today, with
the May contract adding 85 cents, or 0.8%, to finish at $101.14 per
barrel. For the week, however, black gold fell 0.5%.
Gold futures rallied today, as a weaker-than-expected payrolls
report inspired "safe haven" demand for the yellow metal. By the
close, June-dated gold rose $18.90, or 1.5%, to end at $1,303.50 an
ounce. For the week, the malleable metal added 0.7%.
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