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Rising Jobless Claims Spook The Market, Again!

|Includes:CRM, DELL, HPQ, Intel Corporation (INTC), INTU, MFE, MRVL, SHLD, SYMC, WDC

Lots of news on the market today!  INTC came out with a 60% premium bid for MFE, at $7.68 billion.  MFE shares jumped +57.07% while INTC fell 3.52%.  SYMC, another security software company, saw its shares rise +6.2%.  However, investors focused on the rising jobless claims number and drove the broader market down.  SHLD reported weak sales and its shares plunged 9.24%.  SNDK shares slumped 6.6% as it planned  to offer up to $1.15 billion in convertible senior notes.

After the market, CRM shares vaulted +7.72% on record revenue and raised full-year outlook.  MRVL announced a solid quarter and a $500 million share buyback plan; its shares went up +8.65% in after-hours trading.  INTU beat the average estimate with its quarterly results and sending its shares +5.75% higher.  DELL reported a solid quarter, but, its shares fell 2%.  HPQ also had a good quarter, but, doubts still surround the company as its CEO was recently forced out.

The Dow lost 144.33 points; SPX sank 18.53 points; Nasdaq fell 36.75 points:

SOXX (semiconductors) lost 1.71%.  OIH (oil services) dropped 2.3% while USO (oil) was down 1.28%.  XLF (financials) slipped 2.32%.  GLD (gold) made a small gain.  FXI (Chinese ADRs) fell 0.66%.

SPX

SPX sank 18.53 points to close at 1075.63, below the 1080 level.  Its daily MAs and MACD turned down.

Nasdaq

Nasdaq slumped 36.75 points to close at 2178.95, below the 2200 level.  Its 10-day MA crossed below the 30-day MA.

We closed quite a few trades today, mostly on the profit side, after seeing the jobless claims numbers, including the GLD Sept 120 calls, which were the high of the day:
August 19, 2010
12:54 | HappyTrading MELI ($67.80) Sold to Close 09P70 Sep 70 puts, at $4.70 +7%
11:43 | HappyTrading GLD ($120.40) Sold to Close 08 Sep 120 calls, at $2.37 +25%
07:27 | HappyTrading X ($50.30) Sold to Close 09C50 Sep 50 calls, at $3.50 +3%
07:26 | HappyTrading GLD ($120.96) Sold to Close 09C120 Sep 120 calls, at $2.70 +42%
07:05 | HappyTrading MOS ($57.50) Sold to Close 09C55 Sep 55 calls, at $4.55 +40%
06:56 | HappyTrading TSL ($23.65) Sold to Close 09C22.5 Sep 23 calls, at $2.30 +12%
06:39 | HappyTrading AAPL ($253.30) Sold to Close 08C250 Aug 250 calls, at $3.90 -15%

The market keeps on making these big swings within the recent trading range.  We opted to go mostly in cash once again.  Both SPX and Nasdaq closed below their respective support levels (SPX 1080 and Nasdaq 2200).  However, the earnings reports after the market were mostly on the positive side.  As the global economy tries to climb out of the recession, the economic data that are coming in have not been consistent.  Thus, the market has been caught in a trading range, unwilling to break out or break down.  The sentiment right now is not very positive as the market seems to be focusing more on the bad news than the good.  The market is barely hanging on.  It would take a lot to turn it back to the bullish side, but, it won't take much to knock it down from here.

Good night and HappyTrading! ™



Disclosure: no positions
Stocks: INTC, MFE, SYMC, SHLD, WDC, CRM, MRVL, INTU, DELL, HPQ