Market Fluctuations: Stocks Open Higher, but Retreat due to Inflation and Crude Inventory Numbers

Strategic Insights -

Stock markets experienced a mixed trading day on August 17, 2011, with initial gains being offset by subsequent losses. Earnings reports were initially credited for driving up stock prices, but higher-than-expected inflation and crude inventory numbers dampened the momentum, leaving the markets roughly flat. The Dow Jones indices showed mixed results, with some sectors experiencing significant losses, while others trended upward.

Key Takeaways:

  • Stock markets opened higher, but retreated due to inflation and crude inventory numbers, resulting in a roughly flat market by mid-morning.
  • Industries experiencing gains include Tobacco, Electric Utilities, and Grocers, while Apparel Retailers, Apparel and Accessories Producers, and Furniture and Fixtures were trading lower.
  • Notable stocks experiencing losses include LinkedIn (LNKD) at 5%, Hewlett Packard (HPQ), Macy's (M), and Polo Ralph Lauren (RL) all down 4%, and Baidu.com (BIDU), Coach (COH), Ford Motor (F), General Motors (GM), and J B Hunt (JBHT) down 2%.
  • On the other hand, American International Group (AIG), Dominion Resources (D), JPMorgan (JPM), Target (TGT), and NYSE Euronext (NYX) were up 2% and 4%, respectively.
  • Options on AT&T (T) were the most active, with over 32,012 contracts of the October 30 call changing hands.
  • The Put/Call Volume Ratio was at 1.21, and the Put/Call Open Interest Ratio was at 0.94.

Statistics:

  • NYSE Adv/Dec: 2,050/1,777
  • Nasdaq Adv/Dec: 944/1,514
  • VIX: up 0.58 at 33.04
  • Price of VIX at close on August 16, 2011: 32.85
  • Price of VIX at low on August 17, 2011: 30.81
  • Price of VIX at high on August 17, 2011: 33.09
  • Options on AT&T (T) contracts: over 32,012 contracts of the October 30 call
  • Put/Call Volume Ratio: 1.21 (4,706,822/3,900,563)
  • Put/Call Open Interest Ratio: 0.94 (168,816,570/178,901,767)

Sources:

  • "Stocks open higher, but retreat due to inflation and crude inventory numbers" - Fresh Brewed Media via COMTEX (August 17, 2011)
  • Comtex SmarTrend Alert - indicated a DOWNTREND on 01-14-2011 for AIG @ $46.06
  • Comtex SmarTrend Alert - indicated a DOWNTREND on 08-08-2011 for D @ $47.27
  • Comtex SmarTrend Alert - indicated a DOWNTREND on 02-23-2011 for HPQ @ $43.15
  • www.mysmartrend.com
  • www.comtex.com