November 14, 2014

Small Caps Are Issuing a Clear Warning

From InvestorPlace


Small Caps Are Issuing a Clear Warning
Multiple indicators are telling investors to take profits here

By Sam Collins, InvestorPlace Chief Technical Analyst  |  Nov 14, 2014

The S&P 500 and Dow industrials broke to new highs early Thursday, but fell back to close with only modest gains. The small-cap Russell 2000 underperformed, dropping nearly 1%.

Wal-Mart Stores, Inc. (WMT) reported its first quarterly sales increase since 2012, and same-store sales rose 0.5%. Management reduced its full-year earnings forecast to $4.92 to $5.02 per share versus a prior estimate of $4.90 to $5.15. Despite this, shares rose 4.7% and contributed 24 points to the Dow’s gain.

J C Penney Company Inc (JCP) fell 8.5% after reporting lower-than-expected Q3 revenue.

Big technology stocks did well, with Apple Inc. (AAPL), Intel Corporation (INTC), and Microsoft Corporation (MSFT) gaining. Cisco Systems, Inc. (CSCO) led, up 2.3% after beating earnings estimates.

Initial jobless claims increased to 290,000 while analysts expected 280,000. Job openings decreased to 4.735 million in September from 4.853 million in August.

The Dow Jones Industrial Average rose 41 points to 17,653, the S&P 500 gained 1 point at 2,039, the Nasdaq was up 5 points to 4,680, and the Russell 2000 fell 11 points to 1,175.

The NYSE’s primary market traded less than 7 million shares with total volume of 3.4 billion shares. The Nasdaq crossed 1.9 billion shares. On both exchanges, decliners outpaced advancers by about 2-to-1.

11 14 14 rut 300x182 Small Caps Are Issuing a Clear Warning


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