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Dow Can't Overcome Cyprus News
3/18/2013 4:18:00 PM
By: Schaeffer's Investment Research
"It was all about Cyprus and the potential run on their banks,
and what that might mean to other European banks and potentially
the entire financial system," said Schaeffer's Senior Technical
Strategist Ryan Detrick, CMT, on a day that saw the
Dow Jones Industrial Average (DJI)
start slow and try in vain to overcome the European concerns. "In
fact, this is all anyone has talked about since Saturday night when
the news broke. How long this concern over whether this is the
first domino to fall is anyone's guess."
The Dow Jones Industrial Average (DJI) overcame a big drop in the morning but couldn't push past the Cyprus fears, eventually falling for the second straight session. The Dow lost 62 points, or 0.4%, to finish at 14,452.06 after being off roughly 110 points at its intraday low. The 30-member Dow saw just eight of its members advance, led by Hewlett-Packard ( HPQ ), which climbed 2.9%. The 22 decliners were paced by Boeing ( BA ), which fell 1.5% on news that it lost out on a $24 billion plane order to rival Airbus.
The S&P 500 Index (SPX) fell back as well, dropping nearly 9 points, or 0.6%, to close at 1,552.10. The Nasdaq Composite (COMP) finished at 3,237.59, down more than 11 points, or 0.4%.
The CBOE Market Volatility Index (VIX) gained 2.1 points, or 18.2%, to close at 13.36, its highest finish since March 6.
A Trader's Take :
"Given where futures were when they opened last night, you have to be very impressed with the market's resiliency yet again," Detrick said. "There was a lot of fear out there when this news broke on Saturday, but once again the bulls stepped up."
3 Things to Know About Today's Market :
5 Stocks We Were Watching Today :
For a look at today's options movers and commodities activity, head to page 2.
Crude futures had their highest daily close since Feb. 20, as oil for April delivery gained 29 cents, or 0.3%, to finish at $93.74 per barrel.
Gold futures hit their highest point since Feb. 26 on renewed safe-haven sentiment. April-dated gold picked up $12, or 0.8%, to close at $1,604.60 per ounce.
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.