Stocks finish flat after worst week since June; BBRY spikes 10%
Published: Monday, 12 Aug 2013 | 4:00 PM ET
By: JeeYeon Park | CNBC.com Stock Market Writer
Stocks kicked off the week on a
lackluster note, after major averages logged their worst week since
June, as investors found little reason to buy.
(Read more: Why a 4-6 percent pullback may happen soon: Pros)
(Read more: Why a 4-6 percent pullback may happen soon: Pros)
| Name | Price | Change | %Change | ||
|---|---|---|---|---|---|
| DJIA | Dow Jones Industrial Average | 15419.68 | -5.83 | -0.04% | |
| S&P 500 | S&P 500 Index | 1689.47 | -1.95 | -0.12% | |
| NASDAQ | Nasdaq Composite Index | 3669.95 | 9.84 | 0.27% |
The Dow Jones Industrial Average finished near the flatline. Disney led the blue-chip laggards, while Caterpillar rose.
The S&P 500 and the Nasdaq ended narrowly mixed. The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, traded near 13.
Among key S&P sectors, utilities led the laggards, while techs edged higher.
(Read more: Financials near to regaining S&P 500's top spot)
Are the bears back?
Bespoke Investment released a poll showing the highest bearish sentiment this year, with CNBC's Herb Greenberg and Bob Pisani.
While the S&P 500's average price
change in August was the third worst since WWII and that a decline after
the index hit the 1,700 mark was a "normal occurrence," S&P Capital
IQ's chief equity strategist Sam Stovall said a pullback is not
imminent.
"First, we already had a summer swoon when the S&P 500 declined nearly 6 percent from May 22 through June 24," he explained in his latest note. "Second, history says (but does not guarantee) that the odds of a second summer swoon are low."
(Read more: 'Hindenburg Omen' hovering over Wall Street again)
BlackBerry soared after the smartphone maker said its board of directors has formed a special committee to explore strategic alternatives, including going private. Shares of the troubled Canadian company have fallen nearly 20 percent this year. Its market value has fallen to $4.8 billion, from $84 billion at its peak in 2008.
"Given the importance and strength of our technology, and the evolving industry and competitive landscape, we believe that now is the right time to explore strategic alternatives," Timothy Dattels, chairman of BlackBerry's Special Committee of the Board, said in a statement.
Also among techs, Apple rose after a report that the tech giant will unveil its next-generation iPhone on Sept. 10 ahead of the holiday sales period. Meanwhile, rival Samsung is scheduled to take the wraps off a new Galaxy phone in Berlin, a week ahead of Apple's event, according to sources. Separately, Needham cut its price target on Apple to $595 from $710.
(Read more: Apple sets new iPhone date, Wall St says buy now)
Tesla Motors CEO Elon Musk said he will reveal details on his "Hyperloop" transportation system later this afternoon. Musk has claimed that the high-speed ground transporation sysem could move passengers from Los Angeles to San Francisco in 30 minutes. But shares were lower after Lazard downgraded the stock to "neutral" from "buy."
The Japanese Nikkei fell to a six-week low after second-quarter GDP came in at an annualized rate of 2.6 percent, lower than market forecasts of a 3.6 percent gain. However, Japanese officials said the data highlighted the success of "Abenomics", as it marked a third straight quarter of expansion.
Meanwhile, the Shanghai Composite rallied to a 7-week high after a key measure of China's money supply showed a 14.5 percent increase in July on the previous year, and new bank loans grew better than expected.
The data, released late Friday, was the latest sign of a rebound in China's economy, following last week's upbeat industrial production numbers.
(Read more: China data blitz points to stabilizing economy)
"First, we already had a summer swoon when the S&P 500 declined nearly 6 percent from May 22 through June 24," he explained in his latest note. "Second, history says (but does not guarantee) that the odds of a second summer swoon are low."
(Read more: 'Hindenburg Omen' hovering over Wall Street again)
BlackBerry soared after the smartphone maker said its board of directors has formed a special committee to explore strategic alternatives, including going private. Shares of the troubled Canadian company have fallen nearly 20 percent this year. Its market value has fallen to $4.8 billion, from $84 billion at its peak in 2008.
"Given the importance and strength of our technology, and the evolving industry and competitive landscape, we believe that now is the right time to explore strategic alternatives," Timothy Dattels, chairman of BlackBerry's Special Committee of the Board, said in a statement.
Also among techs, Apple rose after a report that the tech giant will unveil its next-generation iPhone on Sept. 10 ahead of the holiday sales period. Meanwhile, rival Samsung is scheduled to take the wraps off a new Galaxy phone in Berlin, a week ahead of Apple's event, according to sources. Separately, Needham cut its price target on Apple to $595 from $710.
(Read more: Apple sets new iPhone date, Wall St says buy now)
Tesla Motors CEO Elon Musk said he will reveal details on his "Hyperloop" transportation system later this afternoon. Musk has claimed that the high-speed ground transporation sysem could move passengers from Los Angeles to San Francisco in 30 minutes. But shares were lower after Lazard downgraded the stock to "neutral" from "buy."
The Japanese Nikkei fell to a six-week low after second-quarter GDP came in at an annualized rate of 2.6 percent, lower than market forecasts of a 3.6 percent gain. However, Japanese officials said the data highlighted the success of "Abenomics", as it marked a third straight quarter of expansion.
Meanwhile, the Shanghai Composite rallied to a 7-week high after a key measure of China's money supply showed a 14.5 percent increase in July on the previous year, and new bank loans grew better than expected.
The data, released late Friday, was the latest sign of a rebound in China's economy, following last week's upbeat industrial production numbers.
(Read more: China data blitz points to stabilizing economy)
Go big or go home stocks
What's exciting about
LinkedIn, Cisco and Caterpillar right now? Robert Luna, Surevest Capital
Management, shares his top stock picks right now.
On the economic front, the U.S. government
posted a $98 billion budget deficit in July, according to a report from
the Treasury. Analysts polled by Reuters had expected deficit of $96
billion.
Among earnings, Sysco slipped after the food distributor posted earnings that fell short of expectations.
Steinway shot higher after the manufacturer of musical instruments said it received a $38-per-share buyout offer from an investment firm, topping an earlier bid by Kohlberg & Co.
General Motors is gradually pulling out of South Korea amid mounting labor costs and militant unionism, according to sources.
In Europe, Greece posted a second-quarter GDP contraction of 4.6 percent year on year, narrowly better than the 5 percent decline analysts had forecast.
Among earnings, Sysco slipped after the food distributor posted earnings that fell short of expectations.
Steinway shot higher after the manufacturer of musical instruments said it received a $38-per-share buyout offer from an investment firm, topping an earlier bid by Kohlberg & Co.
General Motors is gradually pulling out of South Korea amid mounting labor costs and militant unionism, according to sources.
In Europe, Greece posted a second-quarter GDP contraction of 4.6 percent year on year, narrowly better than the 5 percent decline analysts had forecast.
@JeeYeonParkCNBC) On Tap This Week:
TUESDAY: Retail sales, import/export prices, business inventories, Fed's Lockhart speaks, Samsung holiday mobile preview; Earnings from Flower Foods, Cree
WEDNESDAY: MBA mortgage applications, producer price index, oil inventories, Fed's Bullard speaks; Earnings from Deere, Macy's, Cisco, NetApp, NetEase
THURSDAY: Fed's Bullard speaks, consumer price index, jobless claims, Empire state mfg survey, Treasury int'l capital, industrial production, housing market index, Philadelphia Fed survey, e-commerce retail sales, natural gas inventories, Fed balance sheet/money supply, Ford analysts mtg; Earnings from Wal-Mart, Kohl's, Applied Materials, Nordstrom
FRIDAY: Housing starts, productivity & costs, consumer sentiment
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