"While Apple Inc.'s (NASDAQ:AAPL) second-quarter outlook weighed down the technology sector a bit, the market sell-off was met with buyers today, who were looking to scoop up stocks at lower prices," observed Schaeffer's Senior Equity Analyst Joe Bell, CMT. "Most major market indexes breached their 50-day moving averages during the sell-off. While this concern was widely publicized, our studies have shown a break below this trendline didn't amount to much downside during 2013, and actually offered a nice buying opportunity." Although the Dow Jones Industrial Average (DJI) remains below its 50-day trendline, it gained ground today, ending its five-day losing streak.
Continue reading for more on today's market, including:
The Dow Jones Industrial Average (DJI - 15,928.56) moved higher out of the gate and stayed in positive territory for the entire session, ultimately closing with a gain of 90.7 points, or 0.6%. Two dozen Dow names moved higher, led by Pfizer Inc.'s (NYSE:PFE) earnings-related jump of 2.6%. Meanwhile, Cisco Systems, Inc. (NASDAQ:CSCO) and DuPont (NYSE:DD) paced the six decliners, each with a loss of 1.1%.
The S&P 500 Index (SPX - 1,792.50) also spent the day in the green, closing up 10.9 points, or 0.6%. And despite a nearly 8% drop in Apple Inc., the Nasdaq Composite (COMP - 4,097.96) managed to tack on 14.4 points, or 0.4%.
The CBOE Volatility Index (VIX - 15.80) was awash in red ink the entire day, surrendering 1.6 points, or 9.3%, to close back south of the 16 mark.
A Trader's Take:
"Homebuilding stocks had a nice bounce today, after D.R. Horton, Inc. (NYSE:DHI) reported better-than-expected earnings," Bell noted. "The sector struggled a bit during the second half of 2013, but they are starting to pick up some momentum during the past couple of months."
5 Items on Our Radar Today:
For a look at today's options movers and commodities activity, head to page 2.
The Case for Big Moves in IWM and QQQ
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