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Dow Battles Back from 112-Point Deficit, But the Losing Streak Drags On
7/12/2012 4:35:00 PM
By: Schaeffer's Investment Research
"The earnings season continues to unfold and we just haven't
seen good performances thus far," observed Schaeffer's Senior
Equities Analyst Joe Bell. "Throw in the negative momentum of late
and the market is struggling to post any type of gains. With
continued discussion about whether QE3 will ever come, most traders
are looking toward the slew of earnings reports during the next
several weeks for guidance." The
Dow Jones Industrial Average (DJI)
found itself in a deep hole early in the day, but repaired most of
its losses by the closing bell.
At its intra-day low of 12,492.25, the Dow Jones Industrial Average (DJI - 12,573.27) was down by 112 points. Although the Dow inched across breakeven several times after midday, the blue-chip barometer finally gave into the bears and settled with a 31.3-point, or 0.3%, decline on the day. All but eight components finished in the red, as Intel Corporation ( INTC ) and Cisco Systems, Inc. ( CSCO ) paved the way with losses of 2.6% and 2.4%, respectively. Merck & Co., Inc.'s ( MRK ) analyst-inspired 4% jump led the outperforming issues.
The S&P 500 Index (SPX - 1,334.76) tumbled as well, dropping 6.7 points, or 0.5%. Meanwhile, turning in the worst performance of its peers, the Nasdaq Composite (COMP - 2,866.19) sawed off 21.8 points, or 0.8%.
The CBOE Market Volatility Index (VIX - 18.33) climbed 2.1% today, but settled well below its session peak of 19.51.
Today's highlight : "We experienced a strong push into negative territory early on, but once again, the major indices rallied late in the day to finish near breakeven," noted Bell. "It wasn't enough to break the SPX's losing streak though, which posted its sixth daily loss in a row."
Turning to today's major market stories...
For today's activity in commodities, options, and more, head to page 2.
After spending most of the session in the red, oil futures staged a late-day rally and leapt to a second consecutive win. By the close, crude for August delivery added 27 cents, or 0.3%, to settle at $86.08 a barrel.
Make it three down days in a row for gold futures, as the malleable metal took a hit on the Federal Reserve's uncertain stance on whether or when it will implement another round of quantitative easing. Also, the commodity took a hit as the euro dipped to a two-year low, which buoyed the dollar. By the time the dust cleared, August-dated gold fell $10.40, or 0.7%, to land at $1,565.30 an ounce -- its lowest settlement in two weeks.
Levels to watch in trading...
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