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Jobless Claims, Earnings Keep the Downtrend Alive
4/18/2013 4:21:00 PM
By: Schaeffer's Investment Research
"We are now getting to the heart of earnings season, and
technology stocks once again lagged the market as various earnings
failed to impress market participants," observed Schaeffer's Senior
Equity Analyst Joe Bell. Although the tech sector paced the
Dow Jones Industrial Average (DJI)
moved lower again, giving back 81 points and closing south of its
20-day moving average for the first time in nearly two months.
The Dow Jones Industrial Average (DJI) started the day in positive territory, but it certainly didn't stay there for long. By the closing bell, the blue-chip index had dropped 81 points, or almost 0.6%, to 14,537.14, closing south of its 20-day moving average for the first time since Feb. 26. Seven of the 30 Dow components were higher on the day, with Verizon Communications ( VZ ) up 2.8% to lead the way, following its quarterly earnings report. At the back of the pack was another earnings name, UnitedHealth Group ( UNH ), which gave back 3.8%.
The S&P 500 Index (SPX) took out former support at the 1,550 level, shedding 10.4 points, or 0.7%, to settle at 1,541.61, its lowest closing level since early March. Underperforming its index peers was the Nasdaq Composite (COMP), which lost 38 points, or 1.2%, to end the session at 3,166.36.
The CBOE Market Volatility Index (VIX) extended its trek higher , tacking on 1.1 point, or 6.4%, to 17.56.
A Trader's Take :
"Most sectors finished in the red today," Bell said, "as discretionary names struggled and homebuilding stocks once again failed to bounce. Defensive sectors, however, such as telecom and utility stocks, were able to buck this trend. Right now, those are the safe havens as the slide continues."
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.
Oil bounced from a four-month low today, thanks to an ailing greenback. The May contract gained 1.2%, or $1.05, to close at $87.73 per barrel.
Gold edged higher today as well, with June-dated futures adding $9.80, or 0.7%, to settle at $1,392.50 per ounce. Disappointing domestic economic data -- coupled with investors looking for a bargain -- helped buoy the commodity. While entirely relative, this was the precious metal's highest close so far this week.
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.