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Consumer Sentiment at Five-Year Best, but Markets Little Moved
By: Schaeffer's Investment Research
After being up roughly 75 points in early action, the
Dow Jones Industrial Average (DJI)
turned south just before midday and stayed near breakeven for the
latter half of the day. "The broad market once again tried to form
a rally early on, but succumbed to selling pressure in the late
afternoon," said Schaeffer's Senior Equities Analyst Joe Bell. "The
Thomson Reuters/University of Michigan consumer sentiment survey
was released this morning, and came in at its best level since
September 2007. Despite the positive news, however, most sectors
were unable to hold onto gains."
Keep reading to see what else was on our radar today:
- Will the recent pullback in Apple Inc. ( AAPL ) move beyond a "correction" into "bear market" territory?
- Get ready for earnings from these 3 big-cap names .
- Plus, our option idea of the week : Clean Harbors Inc ( CLH ).
Dow Jones Industrial Average (DJI - 13,328.85) BA BAC JNJ
The S&P 500 Index (SPX - 1,428.59) and Nasdaq Composite (COMP - 3,044.11) also burned off early gains, but settled below the breakeven mark by the time the dust settled. The SPX fell 4.3 points, or 0.3%, on the day, and sawed off 2.2% for the week -- its lowest weekly perch since early September. Meanwhile, the COMP notched a 5.3-point, or roughly 0.2%, daily deficit, and an even greater 2.9% weekly defeat -- its lowest weekly reading in two months.
The CBOE Market Volatility Index (VIX - 16.14) was up 0.6 point, or 3.5%, today, bringing its weekly return to 12.6%.
Today's highlight : "We got a first round of financial earnings reports, but the reaction wasn't very positive," pointed out Bell. "Financials were the clear laggard today, as JPMorgan Chase & Co. (JPM) and Wells Fargo & Company (WFC) both reported earnings that underwhelmed investors."
Turning to today's major market stories...
- Don't miss the pre-earnings analysis of blue chips Citigroup Inc. (C), The Coca-Cola Company (KO), and Intel Corporation (INTC).
- Put writers bet on support for Micron Technology, Inc. (MU) , eBay Inc (EBAY) , and Cell Therapeutics Inc (CTIC) .
- Are shareholders employing protective puts on Apple Inc. ( AAPL ) after its more than 10% decline?
- NetApp Inc. (NTAP) bulls scooped up back-month, out-of-the-money calls.
- Telecom giant AT&T Inc. (T) saw a surge in put buying today.
- Contrarians take note: bullish sentiment remains intact on struggling Clean Harbors Inc ( CLH ) .
- Analysts at Jefferies opined about retail giant Wal-Mart Stores, Inc. (WMT) and global semiconductor business Advanced Micro Devices, Inc. (AMD) .
- Outside the Box : (Even) More VIX Speculation.
For today's activity in commodities, options, and more, head to page 2.
Oil futures dipped again today, on the heels of the International Energy Agency report estimating weaker oil demand this year. Lower gasoline prices also weighed on the commodity. Against this backdrop, November-dated crude gave up 21 cents, or 0.2%, to end at $91.86 a barrel. For the week, oil closed higher by 2.2%.
In a rather slow news day, gold futures took a hit on a rise in U.S. consumer sentiment and a round of profit taking by investors. By the close, gold for December delivery lost $10.90, or 0.6%, to settle at $1,759.70 an ounce. The precious metal posted a 1.2% loss on the week.
Levels to watch in trading...
Dow Jones Industrial Average (DJI - 13,328.85)
- support at 11,500; resistance at 14,000
S&P 500 Index (SPX - 1,428.59)
- support at 1,100; resistance at 1,500
- Nasdaq Composite (COMP - 3,044.11) - support at 2,400; resistance at 3,400
At the end of every market day, the staff at Schaeffer's Investment Research reviews the trading day in detail, covering major events and key market developments. Don't miss this critical, timely and insightful report. If you enjoyed today's edition of Market Recap, sign up here for free daily delivery straight to your inbox.