The bulls managed to hold down the fort on Thursday as the bears forced a test to support before the market bounced of its lows into the close. Most of the news was about Dow blue-chip “you know who” but the dollar made another gain which held the rebound in check.
The Nasdaq was off by nearly 2% at its worst level of the session as Tech struggled and the dollar gained another 0.6%. The greenback posted its fifth straight advance and is up 3% during the run, which marks its longest winning streak since August.
We have been mentioning the correlation between the dollar and the stock market, which has worked against each other, and the support for the dollar has come over the eurozone’s sovereign debt. Also worth mentioning is the euro which is about to break key support levels.
Specifically, you can watch the CurrencyShares Euro Trust (FXE, $136.07, down $1.17) which are in a “trading range” but it appears there will be a breakdown instead of a breakout.
As a result, the Dow finished the day with a loss of 74 points to settle at 11,283 while the S&P dropped 5 points to finish at 1,213. The Nasdaq fell 23 points and closed at 2,555. All three indexes held support.
Turning to earnings, Walt Disney (DIS, $35.93, down $1.06) surprised the market right before the close by announcing earnings which they weren’t planned to do so until after the market closed. The company reported a profit of $835 million, or $0.45 a share, versus $895 million, or $0.46 a share, in the year ago period. They missed Wall Street’s estimates by a penny and shares fell 3% on the day.
Revenue for the company fell to $9.74 billion in the quarter, also missing estimates for $9.94 billion.
The stock had been in a tight range up into the close which is when there was word the company’s numbers were already out. Shares immediately dropped to a low of $35.15, or 5%, as volume soared.
Disney is “investigating” the leak but we doubt it was the former secretary, Bonnie Hoxie, who recently pleaded guilty for trying to sell Walt’s numbers ahead of a past quarterly report.
Despite the miss, Walt Disney shares are up 75 cents, to $36.38, in pre-market action.
Futures are pointing towards a lower open as the Dow futures are down 35 points to 11,207 while the S&P futures are off by 6 points to 1,205. The Nasdaq 100 futures are down 12 points to 2,161. Subscribers, check the Members Area for the current trade updates.