The bulls made a nice recovery off Thursday’s lows as they made a late charge in the final 30 minutes of trading to try to get back to even.
The Dow fell 25 points, or 0.2%, to close at 12,602. The blue-chips traded in the red all session long and hit a low of 12,450 shortly after our midday update. This represented a 177 point decline and moved the index within 1% of breaking crucial support at 12,350. The bulls are still trying to clear 12,800 and held support so we can’t ignore the comeback.
The S&P 500 slipped 3 points, or 0.2%, to finish at 1,329. We would have liked to have seen a close below 1,325 as the index traded down to 1,313 and a break below 1,310 would have negated yesterday’s buy programs into the close. The bears are still pushing for a drop below 1,300 while the bulls eye 1,350.
The Nasdaq dropped 26 points, or 0.9%, to settle at 2,849. Once again, the 2,850 level was a battleground as Tech kissed a low of 2,818 before rebounding. The bears are trying to push 2,800 while the bulls are still looking to clear and hold 2,900-2,950.
After the close last night, Nike (NKE, $96.89, down $1.22) announced earnings well below Wall Street’s estimates, missing by 20 cents. Shares were taken to the woodshed in after-hours trading, dropping 13%, to finish south of $85.
Research In Motion (RIMM, $9.13, down $0.05) put another nail in its coffin after reporting an abysmal quarter and delaying the launch of their Playbook, yet again, to 2013. The company lost nearly a buck a share and will lay-off 5,000 employees.
There are two noteworthy economic reports shortly after the open this morning which could impact trading. The Chicago ISM numbers are due out at 9:45am and the Michigan Sentiment figures will be released at 9:55am.
Futures are showing a huge pop for Wall Street this morning after the European Union came to some sort of debt agreement for the Spanish banks. There is a lot to digest but it’s looking like a short-squeeze at the open. Here is how we look: Dow (+187), S&P 500 (+25), Nasdaq (+47).
Subscribers, check the Members Area for the updates.