Things started off well for the bulls as better-than-expected earnings and so-so economic news provided a little pop on Thursday’s open. However, as the day progressed, the bears took control to make it 3-to1 for the week as the market finished lower and the S&P Volatility Index (VIX, 20.89, up 0.89) moved higher after peaking at 21.58.
The Dow fell 54 points to finish at 12,437 after trading to a high of 12,581 while the low was 12,414. The blue-chips started the week at 12,657 and will need to rally over 220 points just to finish flat.
The S&P dropped 9 points to end at 1,309. The index traded to a high of 1,326 and held 1,300 after falling to 1,306. The index will need to clear 1,343 to make it back to even.
The Nasdaq declined 34 points, or 1.2%, and closed at 2,762. Tech managed a pop over 2,800 on the open but traded to a low of 2,755 which was just above the 2,750 area we have been outlining as support.
The good news this morning is that futures are up ahead of the bell on Google’s (GOOG, $528.94, down $9.32) blowout quarter. Shares were up over $60 to nearly $600, or 12%, in after-hours trading last night after the company reported earnings of $8.74 a share on revenue of $6.93 billion.
Wall Street analysts were looking for $7.85 a share on revenue of $6.55 billion. In early action this morning, shares are at $598, up $60.
Elsewhere, Seattle Genetics (SGEN, $20.33, halted) will open slightly lower at $19-and change despite getting approval for its drug, Adcetris, for two treatments.
We mentioned yesterday shares were halted pending the news and we are a little shocked and surprised the stock will open lower. Yes, maybe the advance into the news was baked into the cake and this is a temporary “sell the news event” but what a crock. The true investors who did their homework also know the company’s other revenue model and we said Seattle Genetics could be a powerhouse down the road.
If the stock opens below $20, buy it, and tuck it under a mattress for 2 years.
We have more news to cover inside our Members Area which is where we need to be and will leave it there. We will be back in the afternoon with a full update but stay close to your email inbox or pay attention to our Twitter posts. We could be busy this morning sending out Profit Alerts if some of our price targets are hit on our current trades.