Dow Finishes Down But Only Barely

Dow treads water most of day; S&P 500 grinds out minor gain

by 2/14/2013 4:30:54 PM
Stocks quoted in this article:

"We came in with Europe down across the board after some disappointing economic data from various countries ... but in the end, you have to be impressed with the U.S. market's resiliency here," said Schaeffer's Senior Technical Strategist Ryan Detrick, CMT, of today's trading, which saw the Dow Jones Industrial Average (DJI) grind out a minor loss, dropping just 9 points.

Continue reading for more on today's market, including:

  • The 10 reasons our Senior Options Strategist Tony Venosa, CMT, thinks Target Corp. (NYSE:TGT) is a great candidate for a long trade and could see a "run-up" before its next earnings release.
  • Our Senior Trading Analyst Bryan Sapp says market dips "continue to be bought."
  • Bullish last-minute options traders looked for Research In Motion (NASDAQ:BBRY) to rise in the next few days.
plus...
  • A break-even day on the markets, some really expensive ketchup, and how option traders reacted to the new airline merger involving US Airways (NYSE:LCC) and American Airlines.

The Dow Jones Industrial Average (DJI) tread water for most of the day, slipping in and out of winning territory before finally finishing at 13,973.39, down nearly 10 points, or 0.1%. Alcoa Inc. (NYSE:AA) led the 14 advancers on the 30-member Dow, jumping 2.1%. The 21 decliners were led by Coca-Cola (NYSE:KO), which fell 1% and continues to drop after this week's disappointing earnings report.

The S&P 500 Index (SPX) gained slightly on the day, picking up more than 1 point, or nearly 0.1%, to close at 1,521.38. The Nasdaq Composite (COMP) also won on the day, finishing at 3,198.66, up nearly 2 points, or 0.1%.

The CBOE Volatility Index (VIX) finished at 12.66, down 0.3 point, or 2.5%.

CLOSING SUMMARY  INDICES

CLOSING SUMMARY  NYSE AND NASDAQ

A Trader's Take:

"The market has had all the reasons in the world to sell off the past few weeks, yet it hasn't -- you have to like seeing that action," Detrick said. "It was another day of more new highs from small and mid-caps ... One other big-time positive is the recent big upward trend in mergers and acquisitions."

3 Things to Know About Today's Market:

  • Warren Buffett's Berkshire Hathaway (NYSE:BRK.A) today announced it was buying the venerable food maker H.J. Heinz Company (NYSE:HNZ) for $28 billion.(MarketWatch)
  • Beer maker Anheuser-Busch InBev (NYSE:BUD) today altered the terms of its proposed $20 billion merger with Grupo Modelo to try and satisfy U.S. antitrust regulators who have sued to oppose the deal on competitive concerns.(CNNMoney)
  • Jobless claims dropped by 27,000 as compared to last week's figure, soundly beating analysts' estimates -- and continuing claims now stand at a five-and-a-half year low.(Reuters)

5 Stocks We Were Watching Today:

  1. The officially announced merger between US Airways (NYSE:LCC) and the parent of American Airlines drew long-term bets that LCC's stock wouldn't fall.
  2. Staying on the airline theme, one trader executed a bull call spread on Delta Air Lines (NYSE:DAL).
  3. Juniper Networks (NYSE:JNPR) was the target of a blizzard of short-term calls, with traders looking to cash in at tomorrow's close.
  4. As soon as Crocs (NASDAQ:CROX) announced its next earnings date, bearish put traders pounced, hoping for a second consecutive earnings miss.
  5. AOL (NYSE:AOL) saw its stock pull back 2% yesterday, and short-term bearish investors looked to cash in by the end of the week.
EARNINGS

For a look at today's options movers and commodities activity, head to page 2.

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