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Dow Drags on Tech-Stock Sluggishness, but Ekes Out a Weekly Gain
7/19/2013 4:21:00 PM
By: Schaeffer's Investment Research
"Tech earnings got all the headlines, as Google (
) and Microsoft (
) earnings disappointed, but you still have to give the bulls some
credit," mused Schaeffer's Senior Technical Strategist Ryan
Detrick, CMT. "With all the reasons in the world to have a big down
day, the market did pretty well, all things considered. The S&P
500 Index (SPX) and the Russell 2000 (RUT) both finished in the
green, so more new all-time highs were made." Against this
Dow Jones Industrial Average (DJI)
ended the day on a slightly sour note, but still closed comfortably
above its intraday low.
The Dow Jones Industrial Average (DJI - 15,543.74) spent a hefty portion of the session in the red, following a round of dismal earnings reports from the tech sector. The index sank to an intraday low of 15,491.96, but managed to narrow its losses to finish the day just 4.8 points, or 0.03%, lower. For the week, the blue-chip barometer tacked on 0.5%. General Electric (GE) led the Dow's 16 advancers with a gain of 4.6% after a well-received earnings report, while Microsoft's ( MSFT ) earnings-induced drop of 11.4% (its worst single-day decline in more than three years) paced the 14 decliners.
The S&P 500 Index (SPX - 1,692.09) fared better, adding 2.7 points, or 0.2%, to finish at a new record high. On a weekly basis, the SPX moved up 0.7%. Meanwhile, the tech-rich Nasdaq Composite (COMP - 3,587.61) was the worst performer of the three, shedding 23.7 points, or 0.7%. For the week, the COMP lost 0.3%.
The CBOE Market Volatility Index (VIX - 12.54) also remained south of breakeven for most of the day, closing 1.2 points, or 8.9%, lower. On the week, the "fear gauge" lopped off 9.4%.
A Trader's Take :
"The headlines read that Detroit filed for bankruptcy, General Electric (GE) revenue was light, and Microsoft ( MSFT ) and Google ( GOOG ) were both disappointments," noted Detrick. "Still, none of that mattered. Earnings season really picks up in full swing next week, so be open ready. If we've seen anything so far, it is that the bar was set very low this earnings season. In other words, companies had better beat the lowered expectations, or they will be punished."
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 oil futures remained nearly flat today, but still managed to finish a fourth consecutive week higher, courtesy of a stronger energy outlook and declining crude inventories. At the close, August-dated oil was up 1 cent, at $108.05 per barrel. On a weekly basis, crude gained 2%.
Meanwhile, gold futures notched their highest daily close in a month, thanks to a weak dollar, as well as anxieties spurred by Detroit's bankruptcy filing. By the time the dust settled, the August contract added $8.70, or 0.7%, to end at $1,292.90 an ounce. For the week, the malleable metal tacked on 1.2%.