The bad news: Major stock indexes finished lower today. The good news: The damage was not as bad as it could have been, as Walt Disney (DIS), International Business Machines (IBM), 3M (MMM), Walgreen (WAG) and Genworth Financial (GNW) rose.
Bloomberg The S&P 500 fell 0.2% to 1,751.64 today after falling by as much as 1% earlier in the day. The Dow Jones Industrial Average, meanwhile, finished little changed at 15,440.23 after falling by as much as 0.7%.
Instinet’s Frank N. Cappelleri assesses the half empty/half full trading day:
…it was good seeing 1740 hold, but I would have like to have seen yesterday’s high broken on this afternoon’s strength, as well…The more times the market fails at leveraging this oversold condition, the higher the likelihood that this current pattern turns into another bearish flag formation, in my opinion. We’ll just have to see of the bulls can follow through on the demand that did appear today.
U.S. Bank Wealth Management’s Terry Sandven isn’t worried by the market’s recent weakness:
In our view, equities seem likely to continue to trend higher in 2014, but at a more moderate pace compared to 2013. Following the recent price decline, the risk/reward profile has arguably improved. The extent to which the extreme cold weather conditions have negatively impacted the economy near term is not likely to be determined until after another round of readings are released between now and early March. This may imply a generally sideways-trending market in February as investors maintain a wait-and-see approach.
Shares of Walt Disney rose 1% to $71.76 ahead of this evenings results (it beat), while International Business Machines gained 0.8% to $174.24 and 3M advanced 0.5% to $127.36 after announcing a new plan to buy back its stock. Walgreen gained 3.4% to $57.85 after its same-store sales rose 2.9%, beating analyst forecasts, while Genworth Financial advanced 2.8% to $14.93 after beating earnings.
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