The Dow closed down 22 points at 13,971, the S&P 500 closed down 1 at 1517, and the NASDAQ closed down 2 points at 3192. Action came on below average volume (NYSE had 497 million vs. and average of 707 million; the NASDAQ as well 1512 million vs. an average of 1727 million), with decliners outpacing advancers and new highs outpacing new lows.
The stock indices opened the session on a mildly negative note in the wake of last week’s push to new multi-year intraday highs for the S&P and Dow. A mixed/weaker tone across Europe, further recovery gains in the dollar (pressure on energy/commodity sectors) and a lack of fresh catalysts left the market in a consolidative mode and range bound through most of the day.
The S&P set its low for the day in the first 45 minutes at first level support at 1514/1513 and drifted laterally into the final hour. Some late limited upticks were noted but indices stalled near recent highs/flat line and slipped to finish just slightly lower.
While the indices finished in the red, a tightly confined session in the upper end of the previous day’s range amid low volume reflects little selling interest. Short-term support to monitor for the S&P is again initially at 1514/1513 with a posture above keeping it positioned for a near term follow through attempt. First level resistance above the high of the last two days (1518) is in the 1522/1524 area.
Economic Data Today
Today’s economic data will be limited to the January Treasury budget. This report will be released at 2 p.m. ET. Among notable earnings, Avon Products (NYSE:AVP) and Coca-Cola (NYSE:KO) will report their quarterly results ahead of the open.
The U.S. Treasury will auction off $32 billion in three-year notes.
Before the open look for the following key companies to report (and find my take on which one of these earnings candidates is set to explode after reporting here):
- Coca-Cola (NYSE:KO)
- Reynolds American (NYSE:RAI)
- AllianceBernstein Holding L.P. (NYSE:AB)
- Level 3 Communications (NASDAQ:LVLT)
- Diebold (NYSE:DBD)
- The Goodyear Tire & Rubber Co. (NYSE:GT)
- Avon Products (NYSE:AVP)
- McGraw-Hill (NYSE:MHP)
- Fidelity National Information Services (NYSE:FIS)
- Fossil (NASDAQ:FOSL)
- Michael Kors Holdings (NASDAQ:KORS)
- Valspar (NYSE:VAL)
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